Mcdonalds Holdings Company Japan (2702) AI Stock Analysis

• Market Cap: ¥793.77B
• Dividend Yield: 0.82%
• Average Volume (3M): 472.99K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.30
• Revenue Growth: 3.58%
• EPS Growth: 23.45%
• Country: JP
• Employees: 2,517
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Restaurants
• EPS (TTM): 57.32
• Shares Outstanding: 132,960,000
• 10 Day Avg. Volume: 215,650
• 30 Day Avg. Volume: 472,986
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥6,711.38
• Price Target Upside: 12.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥6,381.00 ▲(7.06%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), 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 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
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Mcdonalds Holdings Company Japan Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5960.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2702, the sentiment is Neutral. The current price of 5960 is above the 20-day moving average (MA) of 5891.50, below the 50-day MA of 5978.60, and below the 200-day MA of 6047.84, indicating a neutral trend. The MACD of -22.01 indicates Negative momentum. The RSI at 52.29 is Neutral, neither overbought nor oversold. The STOCH value of 87.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
2702	65 Neutral	¥793.77B	24.16	13.46%	0.82%	3.58%	23.45%
Sector *	62 Neutral	C$5.25B	8.30	20.23%	3.31%	3.09%	8.49%
SKLYF	―	$4.46B	37.24	8.69%	1.23%	―	―
SZYCF	―	$1.77B	24.82	9.78%	0.48%	―	―
5F7	―	€7.28B	30.63	17.11%	0.94%	―	―
8153	70 Outperform	¥117.32B	37.27		0.79%	3.36%	22.37%
9887	59 Neutral	¥117.77B	53.89		0.39%	20.85%	-25.02%