MCDONALD'S CORP (MCD) Fundamental Analysis & Valuation

NYSE:MCD • US5801351017

327.94 USD
-2.86 (-0.86%)
At close: Mar 10, 2026
329.14 USD
+1.2 (+0.37%)
Pre-Market: 3/11/2026, 8:00:07 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This MCD fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to MCD. MCD was compared to 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. MCD Profitability Analysis

1.1 Basic Checks

  • In the past year MCD was profitable.
  • MCD had a positive operating cash flow in the past year.
  • MCD had positive earnings in each of the past 5 years.
  • MCD had a positive operating cash flow in each of the past 5 years.
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

  • The Return On Assets of MCD (14.39%) is better than 92.06% of its industry peers.
  • MCD has a Return On Invested Capital of 17.76%. This is amongst the best in the industry. MCD outperforms 88.10% of its industry peers.
  • MCD had an Average Return On Invested Capital over the past 3 years of 18.24%. This is significantly above the industry average of 10.49%.
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

  • MCD has a better Profit Margin (31.85%) than 98.41% of its industry peers.
  • MCD's Profit Margin has improved in the last couple of years.
  • MCD has a better Operating Margin (46.11%) than 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.
  • In the last couple of years the Gross Margin of MCD has grown nicely.
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. MCD Health Analysis

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.
  • Compared to 1 year ago, MCD has less shares outstanding
  • MCD has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, MCD has an improved debt to assets ratio.
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.
  • Looking at the Debt to FCF ratio, with a value of 5.56, MCD is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.56
Altman-Z N/A
ROIC/WACC2.21
WACC8.05%
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.
  • MCD's Current ratio of 0.95 is in line compared to the rest of the industry. MCD outperforms 46.83% of its industry peers.
  • MCD has a Quick 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.
  • MCD has a Quick ratio (0.95) which is comparable to the rest of the 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. MCD Growth Analysis

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.
  • Looking at the last year, MCD shows a small growth in Revenue. The Revenue has grown by 3.73% in the last year.
  • MCD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.96% yearly.
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 8.64% 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 5.11% yearly.
EPS Next Y9.74%
EPS Next 2Y9.3%
EPS Next 3Y8.76%
EPS Next 5Y8.64%
Revenue Next Year7.74%
Revenue Next 2Y6.73%
Revenue Next 3Y6.14%
Revenue Next 5Y5.11%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • 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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2

4. MCD Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 26.88, which means the current valuation is very expensive for MCD.
  • MCD's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.25, MCD is valued at the same level.
  • Based on the Price/Forward Earnings ratio of 24.50, the valuation of MCD can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MCD is on the same level as its industry peers.
  • MCD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.39.
Industry RankSector Rank
PE 26.88
Fwd PE 24.5
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

  • MCD's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 32.42
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.
  • The excellent profitability rating of MCD may justify a higher PE ratio.
PEG (NY)2.76
PEG (5Y)1.78
EPS Next 2Y9.3%
EPS Next 3Y8.76%

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

7

5. MCD Dividend Analysis

5.1 Amount

  • MCD has a Yearly Dividend Yield of 2.27%.
  • Compared to an average industry Dividend Yield of 1.10, MCD pays a better dividend. On top of this MCD pays more dividend than 82.54% of the companies listed in the same industry.
  • MCD's Dividend Yield is a higher than the S&P500 average which is at 1.82.
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 paid a dividend for at least 10 years, which is a reliable track record.
  • MCD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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

  • 59.73% of the earnings are spent on dividend by MCD. This is a bit on the high side, but may be sustainable.
  • The dividend of MCD is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP59.73%
EPS Next 2Y9.3%
EPS Next 3Y8.76%
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

More info and screens

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MCD Fundamentals: All Metrics, Ratios and Statistics

MCDONALD'S CORP

NYSE:MCD (3/10/2026, 8:04:00 PM)

Premarket: 329.14 +1.2 (+0.37%)

327.94

-2.86 (-0.86%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-11
Earnings (Next)04-29
Inst Owners75.45%
Inst Owner Change0.6%
Ins Owners0.2%
Ins Owner Change-1.99%
Market Cap232.97B
Revenue(TTM)26.89B
Net Income(TTM)8.56B
Analysts74.42
Price Target352.31 (7.43%)
Short Float %1.22%
Short Ratio2.63
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)2.07%
PT rev (3m)2.99%
EPS NQ rev (1m)-3%
EPS NQ rev (3m)-3.08%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)1.82%
Revenue NQ rev (3m)1.77%
Revenue NY rev (1m)1.83%
Revenue NY rev (3m)2.11%
Valuation
Industry RankSector Rank
PE 26.88
Fwd PE 24.5
P/S 8.67
P/FCF 32.42
P/OCF 22.08
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)12.2
EY3.72%
EPS(NY)13.39
Fwd EY4.08%
FCF(TTM)10.11
FCFY3.08%
OCF(TTM)14.85
OCFY4.53%
SpS37.85
BVpS-2.52
TBVpS-2.52
PEG (NY)2.76
PEG (5Y)1.78
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
WACC8.05%
ROIC/WACC2.21
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 Y9.74%
EPS Next 2Y9.3%
EPS Next 3Y8.76%
EPS Next 5Y8.64%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y5.06%
Revenue growth 5Y6.96%
Sales Q2Q%9.72%
Revenue Next Year7.74%
Revenue Next 2Y6.73%
Revenue Next 3Y6.14%
Revenue Next 5Y5.11%
EBIT growth 1Y4.59%
EBIT growth 3Y6.22%
EBIT growth 5Y11.46%
EBIT Next Year26.97%
EBIT Next 3Y12.73%
EBIT Next 5Y9.78%
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 26.88 and the Price/Book (PB) ratio is -130.08.


Can you provide the dividend sustainability for MCD stock?

The dividend rating of MCDONALD'S CORP (MCD) is 7 / 10 and the dividend payout ratio is 59.73%.