MCDONALD'S CORP (MCD) Fundamental Analysis & Valuation

NYSE:MCD • US5801351017

Current stock price

307.14 USD
-0.15 (-0.05%)
At close:
307.14 USD
0 (0%)
After Hours:

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

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.
  • Each year in the past 5 years MCD had a positive operating cash flow.
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

  • MCD has a Return On Assets of 14.39%. This is amongst the best in the industry. MCD outperforms 91.27% 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 10.68%.
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's Profit Margin of 31.85% is amongst the best of the industry. MCD outperforms 98.41% of its industry peers.
  • In the last couple of years the Profit Margin of MCD has grown nicely.
  • MCD has a Operating Margin of 46.11%. This is amongst the best in the industry. MCD outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of MCD has grown nicely.
  • The Gross Margin of MCD (57.41%) is better than 71.43% of its industry peers.
  • 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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3

2. MCD Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MCD is creating value.
  • Compared to 1 year ago, MCD has less shares outstanding
  • Compared to 5 years ago, MCD has less shares outstanding
  • The debt/assets ratio for MCD has been reduced compared to a year ago.
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 73.02% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.56
Altman-Z N/A
ROIC/WACC2.17
WACC8.19%
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

  • A Current Ratio of 0.95 indicates that MCD may have some problems paying its short term obligations.
  • MCD has a Current ratio (0.95) which is comparable to the rest of the 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 53.17% 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. MCD Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.01% over the past year.
  • The Earnings Per Share has been growing by 15.06% on average over the past years. This is quite good.
  • 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 Year7.7%
Revenue Next 2Y6.73%
Revenue Next 3Y6.15%
Revenue Next 5Y5.11%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

  • Based on the Price/Earnings ratio of 25.18, the valuation of MCD can be described as expensive.
  • MCD's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 25.60, MCD is valued at the same level.
  • A Price/Forward Earnings ratio of 22.94 indicates a rather expensive valuation of MCD.
  • MCD's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of MCD to the average of the S&P500 Index (22.84), we can say MCD is valued inline with the index average.
Industry RankSector Rank
PE 25.18
Fwd PE 22.94
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 30.37
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 MCD does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of MCD may justify a higher PE ratio.
PEG (NY)2.59
PEG (5Y)1.67
EPS Next 2Y9.3%
EPS Next 3Y8.76%

More info and screens

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 2.41%.
  • Compared to an average industry Dividend Yield of 1.11, MCD pays a better dividend. On top of this MCD pays more dividend than 83.33% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.88, MCD pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.41%

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 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.
  • MCD's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept 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

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MCD Fundamentals: All Metrics, Ratios and Statistics

MCDONALD'S CORP

NYSE:MCD (4/2/2026, 8:04:00 PM)

After market: 307.14 0 (0%)

307.14

-0.15 (-0.05%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-11
Earnings (Next)04-23
Inst Owners75.45%
Inst Owner Change0.61%
Ins Owners0.2%
Ins Owner Change-2.22%
Market Cap218.19B
Revenue(TTM)26.89B
Net Income(TTM)8.56B
Analysts74.42
Price Target353.62 (15.13%)
Short Float %1.29%
Short Ratio2.74
Dividend
Industry RankSector Rank
Dividend Yield 2.41%
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)0.37%
PT rev (3m)3.23%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-2.93%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)2.13%
Valuation
Industry RankSector Rank
PE 25.18
Fwd PE 22.94
P/S 8.12
P/FCF 30.37
P/OCF 20.68
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)12.2
EY3.97%
EPS(NY)13.39
Fwd EY4.36%
FCF(TTM)10.11
FCFY3.29%
OCF(TTM)14.85
OCFY4.84%
SpS37.85
BVpS-2.52
TBVpS-2.52
PEG (NY)2.59
PEG (5Y)1.67
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
WACC8.19%
ROIC/WACC2.17
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 Year7.7%
Revenue Next 2Y6.73%
Revenue Next 3Y6.15%
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 Fundamental Analysis 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.


Can you provide the profitability details for MCDONALD'S CORP?

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


How financially healthy is MCDONALD'S CORP?

The financial health rating of MCDONALD'S CORP (MCD) is 3 / 10.


How sustainable is the dividend of MCDONALD'S CORP (MCD) stock?

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