Mcdonalds Holdings Company Japan (2702) AI Stock Analysis

• Market Cap: $816.37B
• Dividend Yield: 0.76%
• Average Volume (3M): 428.31K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.26
• Revenue Growth: 3.58%
• EPS Growth: 23.45%
• Country: JP
• Employees: 2,517
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Restaurants
• EPS (TTM): 57.32
• Shares Outstanding: 132,960,000
• 10 Day Avg. Volume: 279,600
• 30 Day Avg. Volume: 428,310
• PEG Ratio: 2.85
• Price to Book (P/B): 3.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

McDonald's Holdings Company Japan exhibits strong financial performance with consistent revenue and profit growth, solid margins, and a robust balance sheet. Technical analysis indicates a moderate upward price trend, though without significant momentum signals. Valuation suggests a premium pricing, which could limit upside potential. Overall, the stock is solid but with some caution due to valuation concerns.

Mcdonalds Holdings Company Japan Business Overview & Revenue Model

Company Description

McDonald's Holdings Company Japan (2702) is a leading fast-food restaurant operator in Japan, primarily engaged in the management and operation of McDonald's franchises across the country. The company is a part of the global McDonald's Corporation network and offers a wide range of menu items, including burgers, fries, beverages, and breakfast options, tailored to local tastes while maintaining the brand's global standards. McDonald's Holdings Company Japan focuses on delivering quality food and exceptional customer service, leveraging both dine-in and takeout services, as well as digital platforms for ordering.

How the Company Makes Money

McDonald's Holdings Company Japan generates revenue primarily through the sale of food and beverages at its restaurants. The company's revenue model is based on both company-operated stores and franchised outlets. For company-operated stores, the revenue is directly derived from sales. For franchised outlets, McDonald's Holdings Company Japan earns money through franchise royalties and initial franchise fees. These royalties are typically a percentage of the franchisees' sales. Additionally, the company benefits from real estate operations, as it often owns or leases the properties where its restaurants are located and leases them to franchisees. The company's earnings are also bolstered by strategic marketing partnerships and collaborations that enhance brand visibility and customer engagement.

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 company maintains a very low leverage with a high equity ratio, which underscores its financial stability and strong performance.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
405.48B	381.99B	352.30B	317.69B	288.33B
	Gross Profit
80.99B	68.88B	64.33B	63.43B	58.26B
	EBIT
48.02B	40.88B	33.81B	34.52B	31.29B
	EBITDA
64.33B	54.48B	45.08B	45.18B	41.80B
	Net Income Common Stockholders
31.96B	25.16B	19.94B	23.95B	20.19B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
71.33B	65.24B	61.36B	75.27B	62.74B
	Total Assets
337.09B	311.39B	277.36B	260.11B	232.99B
	Total Debt
263.00M	392.00M	480.00M	652.00M	1.31B
	Net Debt
-67.06B	-64.85B	-60.88B	-74.61B	-61.43B
	Total Liabilities
84.05B	84.72B	70.64B	65.89B	57.90B
	Stockholders Equity
253.04B	226.67B	206.72B	194.22B	175.08B
Cash Flow		Free Cash Flow
13.50B	16.06B	-3.95B	17.43B	6.84B
	Operating Cash Flow
52.69B	48.47B	23.77B	38.86B	27.88B
	Investing Cash Flow
-44.76B	-14.18B	-32.22B	-20.77B	-44.05B
	Financing Cash Flow
-5.84B	-5.42B	-5.46B	-5.57B	-4.71B

Mcdonalds Holdings Company Japan Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6000.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 6000 is below the 20-day moving average (MA) of 6020.50, above the 50-day MA of 5840.60, and below the 200-day MA of 6133.04, indicating a neutral trend. The MACD of 65.95 indicates Negative momentum. The RSI at 52.04 is Neutral, neither overbought nor oversold. The STOCH value of 70.19 is Neutral, 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	76 Outperform	$816.37B	24.85	13.46%	0.76%	3.58%	23.45%
7522	73 Outperform	¥44.65B	10.00		0.91%	5.61%	43.18%
7630	73 Outperform	¥151.16B	47.64		1.69%	10.64%	18.07%
7550	70 Outperform	€1.41T	31.96	19.59%	0.81%	21.84%	85.45%
3097	68 Neutral	¥141.51B	22.05		0.97%	14.01%	9.77%
3387	67 Neutral	¥298.42B	53.44		0.56%	7.27%	10.84%
Sector *	61 Neutral	$6.92B	11.84	3.00%	3.95%	2.60%	-21.94%