Mcdonalds Holdings Company Japan (2702) AI Stock Analysis

• Market Cap: $803.07B
• Dividend Yield: 0.79%
• Average Volume (3M): 183.01K
• Price to Earnings (P/E): 23.7
• Beta (1Y): 0.32
• Revenue Growth: 2.73%
• EPS Growth: 18.30%
• Country: JP
• Employees: 2,517
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 76.68
• Shares Outstanding: 132,960,000
• 10 Day Avg. Volume: 186,930
• 30 Day Avg. Volume: 183,006
• PEG Ratio: 0.95
• Price to Book (P/B): 3.25
• Price to Sales (P/S): 2.03
• P/FCF Ratio: 60.98
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 8.63
• Enterprise Value/Ebitda: 10.64
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥6,738.00 ▲(9.03% Upside)

McDonald's Holdings Company Japan's strong financial performance is the primary driver of its stock score, supported by robust revenue growth and financial stability. However, technical indicators suggest a bearish trend, and the valuation appears high, which tempers the overall score.

Mcdonalds Holdings Company Japan Business Overview & Revenue Model

Company Description

McDonald's Holdings Company (Japan), Ltd. operates a chain of hamburger restaurants under the McDonald's brand in Japan. As of December 31, 2021, it operated 2,942 restaurants. The company was formerly known as Japan McDonald's K.K. and changed its name to McDonald's Holdings Company (Japan), Ltd. in July 2002. McDonald's Holdings Company (Japan), Ltd. was founded in 1971 and is headquartered in Tokyo, Japan.

How the Company Makes Money

McDonald's Holdings Company Japan generates revenue through several key streams. Primarily, the company earns money from the sale of food and beverages at its restaurants, which include both company-operated locations and franchised outlets. The revenue model is heavily reliant on high sales volume driven by customer traffic, effective marketing campaigns, and seasonal menu promotions. Additionally, the company collects franchise fees and royalties from its franchisees, which contribute significantly to its overall earnings. Partnerships with suppliers ensure a steady supply of ingredients, while collaborations with delivery services enhance accessibility and convenience for customers, further boosting sales. The company also engages in promotional activities and limited-time offers that attract new customers and retain existing ones, contributing to its financial performance.

Mcdonalds Holdings Company Japan Financial Statement Overview

Summary

McDonald's Holdings Company Japan demonstrates strong financial health with consistent revenue growth, robust profit margins, and solid cash flows. The low Debt-to-Equity ratio and high Equity Ratio further enhance its financial stability.

Income Statement

McDonald's Holdings Company Japan's income statement shows strong financial health with consistent revenue growth, achieving a 6.15% increase from 2023 to 2024. Gross Profit Margin and Net Profit Margin are robust at 19.98% and 7.88% respectively for 2024, indicating efficient cost management and profitability. EBIT and EBITDA margins are also healthy, showing operational efficiency.

Balance Sheet

The balance sheet is strong with a low Debt-to-Equity ratio of 0.001, reflecting minimal leverage. The Equity Ratio is high at 75.06%, suggesting financial stability. Return on Equity stands at 12.63%, demonstrating effective use of equity capital. The company's substantial cash reserves further enhance its financial position.

Cash Flow

Cash flows are solid with a positive Free Cash Flow and a noteworthy Operating Cash Flow to Net Income ratio of 1.65, indicating effective cash generation from operations. Despite a decline in Free Cash Flow over the latest year, the company's overall cash management remains strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	407.80B	405.48B	381.99B	352.30B	317.69B	288.33B
Gross Profit	83.16B	80.99B	72.29B	64.33B	63.43B	58.26B
EBITDA	67.45B	64.33B	54.48B	45.08B	45.18B	41.80B
Net Income	33.86B	31.96B	25.16B	19.94B	23.95B	20.19B
Balance Sheet
Total Assets	335.40B	337.09B	311.39B	277.36B	260.11B	232.99B
Cash, Cash Equivalents and Short-Term Investments	74.82B	71.33B	65.24B	61.36B	75.27B	62.74B
Total Debt	193.00M	263.00M	392.00M	480.00M	652.00M	1.31B
Total Liabilities	72.08B	84.05B	84.72B	70.64B	65.89B	57.90B
Stockholders Equity	263.31B	253.04B	226.67B	206.72B	194.22B	175.08B
Cash Flow
Free Cash Flow	0.00	13.50B	16.06B	-3.95B	17.43B	6.84B
Operating Cash Flow	0.00	52.69B	48.47B	23.77B	38.86B	27.88B
Investing Cash Flow	0.00	-44.76B	-14.18B	-32.22B	-20.77B	-44.05B
Financing Cash Flow	0.00	-5.84B	-5.42B	-5.46B	-5.57B	-4.71B

Mcdonalds Holdings Company Japan Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6180.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2702, the sentiment is Positive. The current price of 6180 is above the 20-day moving average (MA) of 6112.50, below the 50-day MA of 6251.20, and above the 200-day MA of 6053.60, indicating a neutral trend. The MACD of -21.53 indicates Negative momentum. The RSI at 52.63 is Neutral, neither overbought nor oversold. The STOCH value of 78.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2702.

Mcdonalds Holdings Company Japan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7550	72 Outperform	¥1.42T	37.30	15.82%	0.78%	11.29%	-4.88%
8153	70 Outperform	¥120.56B	34.01	―	0.76%	5.15%	47.13%
2702	67 Neutral	$803.07B	23.71	13.08%	0.79%	2.73%	18.30%
3197	64 Neutral	$641.78B	41.27	9.53%	0.59%	15.58%	60.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7581	61 Neutral	$252.31B	22.73	9.66%	0.55%	14.33%	36.83%
9887	57 Neutral	¥111.10B	40.92	―	0.41%	20.44%	13.71%

Mcdonalds Holdings Company Japan Corporate Events

McDonald’s Japan Reports Strong Mid-Year Earnings Growth

McDonald’s Holdings Company Japan, a key player in the fast-food industry, operates a network of company-owned and franchised restaurants across Japan, focusing on delivering quality food and customer satisfaction.