Mcdonalds Holdings Company Japan Ltd (JP:2702)
:2702
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Mcdonalds Holdings Company Japan
(2702)
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Rating:74Outperform
Price Target:
¥8,680.00
▲(35.63% Upside)
Action:Upgraded
Date:02/08/26
The score is primarily driven by strong financial performance—consistent growth, improving margins, and an exceptionally low-debt balance sheet—partly offset by uneven free cash flow conversion. Technicals are supportive but look overextended, while valuation (higher P/E and low dividend yield) is a secondary headwind.
Positive Factors
Very low leverage and growing equity
Extremely low debt and rising equity provide durable financial flexibility, reducing refinancing and interest-rate risk. This conservative capital structure supports investment, withstands downturns, and preserves optionality for franchising, capex or shareholder returns over the next 2–6 months and beyond.
Negative Factors
Volatile and modest free cash flow conversion
Weak and inconsistent free cash flow conversion limits the firm’s ability to fund growth, increase payouts or deleverage without using reserves. Ongoing working-capital and capex swings mean cash returns to shareholders and resilience against shocks are less predictable over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage and growing equity
Extremely low debt and rising equity provide durable financial flexibility, reducing refinancing and interest-rate risk. This conservative capital structure supports investment, withstands downturns, and preserves optionality for franchising, capex or shareholder returns over the next 2–6 months and beyond.
Read all positive factors
Mcdonalds Holdings Company Japan (2702) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥981.24B
Dividend Yield0.76%
Average Volume (3M)183.01K
Price to Earnings (P/E)26.2
Beta (1Y)0.19
Revenue Growth3.46%
EPS Growth13.52%
CountryJP
Employees2,517
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)254.70
Shares Outstanding132,960,000
10 Day Avg. Volume186,930
30 Day Avg. Volume183,006
Financial Highlights & Ratios
PEG Ratio4.11
Price to Book (P/B)3.03
Price to Sales (P/S)2.04
P/FCF Ratio54.08
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)275.9
Revenue Forecast (FY)¥415.80B
Mcdonalds Holdings Company Japan Business Overview & Revenue Model
Company Description
McDonald's Holdings Company (Japan), Ltd. manages the extensive chain of McDonald's branded burger restaurants throughout Japan. As of December 31, 2021, its operations encompassed 2,942 locations. The enterprise, which traces its origins to 1971,...
How the Company Makes Money
The company makes money primarily through (1) sales at company-operated McDonald’s restaurants and (2) fees and royalties from franchised restaurants in Japan. For company-operated stores, revenue is generated from direct customer transactions acr...
Mcdonalds Holdings Company Japan Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 407.80B | 416.60B | 405.48B | 381.99B | 352.30B | 317.69B |
| Gross Profit | 83.16B | 86.57B | 77.31B | 68.88B | 61.52B | 61.07B |
| EBITDA | 67.28B | 68.66B | 64.33B | 54.48B | 45.08B | 45.18B |
| Net Income | 33.86B | 33.91B | 31.96B | 25.16B | 19.94B | 23.95B |
Balance Sheet | ||||||
| Total Assets | 335.40B | 364.47B | 337.09B | 311.39B | 277.37B | 260.11B |
| Cash, Cash Equivalents and Short-Term Investments | 74.82B | 73.42B | 71.33B | 65.24B | 61.36B | 75.27B |
| Total Debt | 193.00M | 156.00M | 263.00M | 392.00M | 480.00M | 652.00M |
| Total Liabilities | 72.08B | 84.00B | 84.05B | 84.72B | 70.64B | 65.89B |
| Stockholders Equity | 263.31B | 280.47B | 253.04B | 226.67B | 206.72B | 194.22B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 15.71B | 13.50B | 18.92B | -1.00M | 19.92B |
| Operating Cash Flow | 0.00 | 53.24B | 52.69B | 48.47B | 23.77B | 38.86B |
| Investing Cash Flow | 0.00 | -42.47B | -44.76B | -14.18B | -32.22B | -20.77B |
| Financing Cash Flow | 0.00 | -6.67B | -5.84B | -5.42B | -5.46B | -5.57B |
Mcdonalds Holdings Company Japan Technical Analysis
Negative
6400.00
Price Trends
7968.60
Negative
7666.20
Negative
6981.87
Positive
Market Momentum
-174.81
Positive
40.23
Neutral
57.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2702, the sentiment is Negative. The current price of 6400 is below the 20-day moving average (MA) of 7652.00, below the 50-day MA of 7968.60, and below the 200-day MA of 6981.87, indicating a neutral trend. The MACD of -174.81 indicates Positive momentum. The RSI at 40.23 is Neutral, neither overbought nor oversold. The STOCH value of 57.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2702.
Mcdonalds Holdings Company Japan Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥981.24B | 26.21 | 13.08% | 0.76% | 3.46% | 13.52% | |
65 Neutral | ¥256.71B | 20.90 | 9.66% | 0.55% | 15.12% | 18.16% | |
63 Neutral | ¥111.47B | 24.11 | ― | 0.70% | 6.85% | 45.60% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ¥626.43B | 34.34 | 9.53% | 0.55% | 12.02% | 20.18% | |
61 Neutral | ¥201.76B | 42.53 | ― | 0.69% | 10.09% | 22.64% | |
56 Neutral | ¥1.27T | 26.73 | 15.36% | 0.78% | 11.21% | 9.99% |
* Consumer Cyclical Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.