MCDONALD'S CORP (MCD) Stock Fundamental Analysis

NYSE:MCD • US5801351017

333.01 USD
-0.04 (-0.01%)
At close: Feb 25, 2026
333.01 USD
0 (0%)
After Hours: 2/25/2026, 7:00:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

MCD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 126 industry peers in the Hotels, Restaurants & Leisure industry. MCD has an excellent profitability rating, but there are concerns on its financial health. MCD is valied quite expensively at the moment, while it does show a decent growth rate. Finally MCD also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year MCD was profitable.
  • In the past year MCD had a positive cash flow from operations.
  • Each year in the past 5 years MCD has been profitable.
  • In the past 5 years MCD always reported a positive cash flow from operatings.
MCD Yearly Net Income VS EBIT VS OCF VS FCFMCD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 14.39%, MCD belongs to the top of the industry, outperforming 91.27% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 17.76%, MCD belongs to the best of the industry, outperforming 87.30% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for MCD is significantly above the industry average of 10.66%.
Industry RankSector Rank
ROA 14.39%
ROE N/A
ROIC 17.76%
ROA(3y)14.79%
ROA(5y)14.13%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.24%
ROIC(5y)17.58%
MCD Yearly ROA, ROE, ROICMCD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -100 -200 -300 -400

1.3 Margins

  • The Profit Margin of MCD (31.85%) is better than 97.62% of its industry peers.
  • MCD's Profit Margin has improved in the last couple of years.
  • MCD's Operating Margin of 46.11% is amongst the best of the industry. MCD outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of MCD has grown nicely.
  • Looking at the Gross Margin, with a value of 57.41%, MCD is in the better half of the industry, outperforming 70.63% of the companies in the same industry.
  • MCD's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 46.11%
PM (TTM) 31.85%
GM 57.41%
OM growth 3Y1.1%
OM growth 5Y4.21%
PM growth 3Y6.13%
PM growth 5Y5.28%
GM growth 3Y0.26%
GM growth 5Y2.49%
MCD Yearly Profit, Operating, Gross MarginsMCD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • MCD has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • The number of shares outstanding for MCD has been reduced compared to 1 year ago.
  • The number of shares outstanding for MCD has been reduced compared to 5 years ago.
  • MCD has a better debt/assets ratio than last year.
MCD Yearly Shares OutstandingMCD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
MCD Yearly Total Debt VS Total AssetsMCD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.2 Solvency

  • The Debt to FCF ratio of MCD is 5.56, which is a neutral value as it means it would take MCD, 5.56 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of MCD (5.56) is better than 73.81% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.56
Altman-Z N/A
ROIC/WACC2.22
WACC8%
MCD Yearly LT Debt VS Equity VS FCFMCD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B 40B

2.3 Liquidity

  • MCD has a Current Ratio of 0.95. This is a bad value and indicates that MCD is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 0.95, MCD is in line with its industry, outperforming 44.44% of the companies in the same industry.
  • A Quick Ratio of 0.95 indicates that MCD may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.95, MCD perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.95
Quick Ratio 0.95
MCD Yearly Current Assets VS Current LiabilitesMCD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.01% over the past year.
  • MCD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.06% yearly.
  • The Revenue has been growing slightly by 3.73% in the past year.
  • Measured over the past years, MCD shows a small growth in Revenue. The Revenue has been growing by 6.96% on average per year.
EPS 1Y (TTM)4.01%
EPS 3Y6.5%
EPS 5Y15.06%
EPS Q2Q%10.25%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y5.06%
Revenue growth 5Y6.96%
Sales Q2Q%9.72%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.01% on average over the next years. This is quite good.
  • MCD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.56% yearly.
EPS Next Y9.8%
EPS Next 2Y9.23%
EPS Next 3Y9.51%
EPS Next 5Y9.01%
Revenue Next Year8.04%
Revenue Next 2Y6.88%
Revenue Next 3Y6.07%
Revenue Next 5Y4.56%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
MCD Yearly Revenue VS EstimatesMCD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B 40B
MCD Yearly EPS VS EstimatesMCD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5 10 15 20 25

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 27.30 indicates a quite expensive valuation of MCD.
  • The rest of the industry has a similar Price/Earnings ratio as MCD.
  • MCD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.05, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 24.86, which indicates a rather expensive current valuation of MCD.
  • The rest of the industry has a similar Price/Forward Earnings ratio as MCD.
  • MCD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.03.
Industry RankSector Rank
PE 27.3
Fwd PE 24.86
MCD Price Earnings VS Forward Price EarningsMCD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • The rest of the industry has a similar Price/Free Cash Flow ratio as MCD.
Industry RankSector Rank
P/FCF 33.01
EV/EBITDA N/A
MCD Per share dataMCD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • MCD has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.79
PEG (5Y)1.81
EPS Next 2Y9.23%
EPS Next 3Y9.51%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. Dividend

5.1 Amount

  • MCD has a Yearly Dividend Yield of 2.27%. Purely for dividend investing, there may be better candidates out there.
  • MCD's Dividend Yield is rather good when compared to the industry average which is at 1.09. MCD pays more dividend than 83.33% of the companies in the same industry.
  • MCD's Dividend Yield is a higher than the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 2.27%

5.2 History

  • The dividend of MCD is nicely growing with an annual growth rate of 7.33%!
  • MCD has been paying a dividend for at least 10 years, so it has a reliable track record.
  • MCD has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.33%
Div Incr Years34
Div Non Decr Years34
MCD Yearly Dividends per shareMCD Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • MCD pays out 59.73% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The dividend of MCD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP59.73%
EPS Next 2Y9.23%
EPS Next 3Y9.51%
MCD Yearly Income VS Free CF VS DividendMCD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B
MCD Dividend Payout.MCD Dividend Payout, showing the Payout Ratio.MCD Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

MCDONALD'S CORP

NYSE:MCD (2/25/2026, 7:00:00 PM)

After market: 333.01 0 (0%)

333.01

-0.04 (-0.01%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-11
Earnings (Next)04-29
Inst Owners74.96%
Inst Owner Change0.59%
Ins Owners0.2%
Ins Owner Change-1.71%
Market Cap237.15B
Revenue(TTM)26.89B
Net Income(TTM)8.56B
Analysts72.56
Price Target345.17 (3.65%)
Short Float %1.13%
Short Ratio2.39
Dividend
Industry RankSector Rank
Dividend Yield 2.27%
Yearly Dividend7.17
Dividend Growth(5Y)7.33%
DP59.73%
Div Incr Years34
Div Non Decr Years34
Ex-Date03-03
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.36%
Min EPS beat(2)-4.16%
Max EPS beat(2)1.44%
EPS beat(4)2
Avg EPS beat(4)-0.71%
Min EPS beat(4)-4.16%
Max EPS beat(4)1.44%
EPS beat(8)2
Avg EPS beat(8)-1.24%
EPS beat(12)6
Avg EPS beat(12)1.92%
EPS beat(16)10
Avg EPS beat(16)2.3%
Revenue beat(2)1
Avg Revenue beat(2)0.12%
Min Revenue beat(2)-1.23%
Max Revenue beat(2)1.46%
Revenue beat(4)2
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-3.22%
Max Revenue beat(4)1.46%
Revenue beat(8)2
Avg Revenue beat(8)-0.94%
Revenue beat(12)5
Avg Revenue beat(12)-0.11%
Revenue beat(16)8
Avg Revenue beat(16)0.13%
PT rev (1m)0.32%
PT rev (3m)0.93%
EPS NQ rev (1m)-2.99%
EPS NQ rev (3m)-3.08%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)2.31%
Revenue NQ rev (3m)2.04%
Revenue NY rev (1m)2.3%
Revenue NY rev (3m)2.11%
Valuation
Industry RankSector Rank
PE 27.3
Fwd PE 24.86
P/S 8.82
P/FCF 33.01
P/OCF 22.48
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)12.2
EY3.66%
EPS(NY)13.4
Fwd EY4.02%
FCF(TTM)10.09
FCFY3.03%
OCF(TTM)14.81
OCFY4.45%
SpS37.75
BVpS-2.51
TBVpS-2.51
PEG (NY)2.79
PEG (5Y)1.81
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 14.39%
ROE N/A
ROCE 22.48%
ROIC 17.76%
ROICexc 18.02%
ROICexgc 18.02%
OM 46.11%
PM (TTM) 31.85%
GM 57.41%
FCFM 26.72%
ROA(3y)14.79%
ROA(5y)14.13%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)18.24%
ROIC(5y)17.58%
ROICexc(3y)19.09%
ROICexc(5y)18.62%
ROICexgc(3y)20.28%
ROICexgc(5y)19.98%
ROCE(3y)23.13%
ROCE(5y)22.28%
ROICexgc growth 3Y-3.89%
ROICexgc growth 5Y4.57%
ROICexc growth 3Y-0.99%
ROICexc growth 5Y6.34%
OM growth 3Y1.1%
OM growth 5Y4.21%
PM growth 3Y6.13%
PM growth 5Y5.28%
GM growth 3Y0.26%
GM growth 5Y2.49%
F-Score6
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.56
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales 12.52%
Interest Coverage 250
Cash Conversion N/A
Profit Quality 83.91%
Current Ratio 0.95
Quick Ratio 0.95
Altman-Z N/A
F-Score6
WACC8%
ROIC/WACC2.22
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)10.82%
Cap/Sales(5y)9.89%
Profit Quality(3y)83.57%
Profit Quality(5y)86.73%
High Growth Momentum
Growth
EPS 1Y (TTM)4.01%
EPS 3Y6.5%
EPS 5Y15.06%
EPS Q2Q%10.25%
EPS Next Y9.8%
EPS Next 2Y9.23%
EPS Next 3Y9.51%
EPS Next 5Y9.01%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y5.06%
Revenue growth 5Y6.96%
Sales Q2Q%9.72%
Revenue Next Year8.04%
Revenue Next 2Y6.88%
Revenue Next 3Y6.07%
Revenue Next 5Y4.56%
EBIT growth 1Y4.59%
EBIT growth 3Y6.22%
EBIT growth 5Y11.46%
EBIT Next Year25.23%
EBIT Next 3Y12.97%
EBIT Next 5Y9.63%
FCF growth 1Y7.67%
FCF growth 3Y9.4%
FCF growth 5Y9.21%
OCF growth 1Y11.66%
OCF growth 3Y12.62%
OCF growth 5Y10.98%

MCDONALD'S CORP / MCD FAQ

Can you provide the ChartMill fundamental rating for MCDONALD'S CORP?

ChartMill assigns a fundamental rating of 5 / 10 to MCD.


What is the valuation status for MCD stock?

ChartMill assigns a valuation rating of 2 / 10 to MCDONALD'S CORP (MCD). This can be considered as Overvalued.


How profitable is MCDONALD'S CORP (MCD) stock?

MCDONALD'S CORP (MCD) has a profitability rating of 8 / 10.


Can you provide the PE and PB ratios for MCD stock?

The Price/Earnings (PE) ratio for MCDONALD'S CORP (MCD) is 27.3 and the Price/Book (PB) ratio is -132.41.


Can you provide the dividend sustainability for MCD stock?

The dividend rating of MCDONALD'S CORP (MCD) is 8 / 10 and the dividend payout ratio is 59.73%.