McDonald's India, subsidiary of the Chicago-headquartered fast food giant - McDonald's Corp., finally reported net profit for the FY2017-18 after 22 years of business in India.
According to its latest filings with the Registrar of Companies of India, the company reported a net profit of INR 65.2 lakhs (approx. USD 93,083) compared to net loss of INR 305 crore (approx. USD 43,549,638) a year ago. The company further said in its filing that it has not only been able to stem further erosion of its net worth, its also been able to successfully reverse the trend of erosion through the infusion of fresh capital.
Recording a y-o-y growth of ~8%, the company reported a total income of INR 119.60 crore earned mostly through royalty income. This revival happened amidst a long-drawn legal dispute with one of its key licensee partners.
McDonald’s entered India in 1996 and since then has reported an accumulated loss of ~INR 421 crore.
McDonald's operates in the country through a master franchisee structure with its two partners – Connaught Plaza Restaurants (CPRL) and Westlife Development.
According to analysts, with the total sales of quick-service restaurants in India expected to reach $21.6 billion by 2022 after growing by 9.2%, the company can further improve its performance in India in the years ahead. Further, with the western fast food market accounting for just 1.3% of the overall eating-out market, it is expected to grow the fastest -- by 13.4% to reach $1.8 billion in 2022.
The eating-out market in India, which is dominated by disorganized players, is expected to reach $131 billion by 2022.
The RSI Indicator for MCD moved out of oversold territory on April 17, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 22 similar instances when the indicator left oversold territory. In of the 22 cases the stock moved higher. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on April 18, 2024. You may want to consider a long position or call options on MCD as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for MCD just turned positive on April 18, 2024. Looking at past instances where MCD's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MCD advanced for three days, in of 334 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 77 cases where MCD's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MCD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MCD broke above its upper Bollinger Band on April 23, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for MCD entered a downward trend on April 19, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (4.101). P/E Ratio (23.316) is within average values for comparable stocks, (53.157). Projected Growth (PEG Ratio) (1.979) is also within normal values, averaging (1.991). Dividend Yield (0.023) settles around the average of (0.035) among similar stocks. P/S Ratio (7.776) is also within normal values, averaging (3.248).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MCD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an operator of food restaurant chain
Industry Restaurants