Mcdonalds Holdings Company Japan (2702) AI Stock Analysis

• Market Cap: $846.95B
• Dividend Yield: 0.77%
• Average Volume (3M): 334.52K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.31
• Revenue Growth: 1.82%
• EPS Growth: 18.05%
• Country: JP
• Employees: 2,517
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 69.01
• Shares Outstanding: 132,960,000
• 10 Day Avg. Volume: 174,720
• 30 Day Avg. Volume: 334,523
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 8.83
• Enterprise Value/Ebitda: 10.96
• 1Y Price Target: $6,381.63
• Price Target Upside: 0.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥6,381.00 ▲(0.02% Upside)

The overall stock score is driven primarily by McDonald's Holdings Company Japan's strong financial performance, with consistent revenue and profit growth and solid cash flow management. Technical analysis indicates mixed signals, with the stock trading below key moving averages but showing neutral momentum indicators. The valuation suggests the stock is moderately priced, with a modest dividend yield.

Mcdonalds Holdings Company Japan Business Overview & Revenue Model

Company Description

McDonald's Holdings Company Japan (2702) operates as a leading fast-food restaurant chain within Japan, serving as the Japanese subsidiary of the global McDonald's Corporation. The company focuses on providing a variety of menu items including burgers, fries, beverages, and breakfast products, catering to the fast-food segment in the region. It operates through company-owned stores and franchises, striving to deliver quality food and customer service across its extensive network of locations.

How the Company Makes Money

McDonald's Holdings Company Japan generates revenue primarily through its restaurant operations, which include sales from company-owned restaurants and franchise fees from franchised locations. The company-owned restaurants contribute to revenue through direct sales of food and beverages. In addition, the franchise model allows McDonald's Japan to earn income through initial franchise fees, ongoing royalties based on a percentage of sales, and rent from franchisees who lease properties owned by the company. This combination of direct sales and franchise-related income streams provides a diversified revenue model. Significant partnerships with local suppliers and strategic marketing initiatives also play a crucial role in sustaining and enhancing its earnings.

Mcdonalds Holdings Company Japan Financial Statement Overview

Summary

McDonald's Holdings Company Japan has demonstrated strong financial performance, characterized by consistent revenue and profit growth, robust margins, and effective cash flow management. The company's low leverage and high equity ratio further contribute to 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	405.32B	405.48B	381.99B	352.30B	317.69B	288.33B
Gross Profit	81.31B	80.99B	72.29B	64.33B	63.43B	58.26B
EBITDA	65.50B	64.33B	54.48B	45.08B	45.18B	41.80B
Net Income	32.85B	31.96B	25.16B	19.94B	23.95B	20.19B
Balance Sheet
Total Assets	321.50B	337.09B	311.39B	277.36B	260.11B	232.99B
Cash, Cash Equivalents and Short-Term Investments	56.26B	71.33B	65.24B	61.36B	75.27B	62.74B
Total Debt	225.00M	263.00M	392.00M	480.00M	652.00M	1.31B
Total Liabilities	67.36B	84.05B	84.72B	70.64B	65.89B	57.90B
Stockholders Equity	254.14B	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: 6380.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6380 is below the 20-day moving average (MA) of 6550.50, above the 50-day MA of 6266.00, and above the 200-day MA of 6034.66, indicating a neutral trend. The MACD of 29.94 indicates Positive momentum. The RSI at 41.63 is Neutral, neither overbought nor oversold. The STOCH value of 7.72 is Positive, 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	1.55T	42.01	16.37%	0.71%	14.00%	4.67%
8153	70 Outperform	125.19B	35.32	5.83%	0.74%	4.32%	29.02%
2702	65 Neutral	$846.95B	25.01	13.79%	0.77%	1.82%	18.05%
3197	65 Neutral	684.33B	44.00	8.70%	0.63%	14.39%	47.75%
7581	61 Neutral	248.41B	23.22	7.35%	0.60%	16.42%	39.76%
9887	54 Neutral	117.57B	43.31	4.79%	0.39%	21.94%	-7.70%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%