MCDONALD'S CORP (MCD) Fundamental Analysis & Valuation

NYSE:MCD • US5801351017

Current stock price

292.39 USD
+2.18 (+0.75%)
At close:
292.738 USD
+0.35 (+0.12%)
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

  • MCD had positive earnings in the past year.
  • 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 better Return On Assets (14.39%) than 92.06% of its industry peers.
  • With an excellent Return On Invested Capital value of 17.76%, MCD belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for MCD is significantly above the industry average of 10.55%.
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

  • Looking at the Profit Margin, with a value of 31.85%, MCD belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
  • MCD's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 46.11%, MCD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of MCD has grown nicely.
  • MCD has a better Gross Margin (57.41%) 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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. MCD Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MCD is creating value.
  • Compared to 1 year ago, MCD has less shares outstanding
  • MCD has less shares outstanding than it did 5 years ago.
  • 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.
  • MCD has a better Debt to FCF ratio (5.56) than 72.22% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 5.56
Altman-Z N/A
ROIC/WACC2.17
WACC8.18%
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 has a Current ratio (0.95) which is in line with its industry peers.
  • A Quick Ratio of 0.95 indicates that MCD may have some problems paying its short term obligations.
  • MCD's Quick ratio of 0.95 is in line compared to the rest of the industry. MCD outperforms 53.97% of its industry peers.
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

  • MCD shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.01%.
  • The Earnings Per Share has been growing by 15.06% on average over the past years. This is quite good.
  • MCD shows a small growth in Revenue. In the last year, the Revenue has grown by 3.73%.
  • 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

  • MCD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.09% yearly.
  • MCD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.79% yearly.
EPS Next Y9.55%
EPS Next 2Y9.22%
EPS Next 3Y8.77%
EPS Next 5Y9.09%
Revenue Next Year7.35%
Revenue Next 2Y6.68%
Revenue Next 3Y6.07%
Revenue Next 5Y5.79%

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 stable.
MCD Yearly Revenue VS EstimatesMCD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B
MCD Yearly EPS VS EstimatesMCD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20 25

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2

4. MCD Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 23.97, which indicates a rather expensive current valuation of MCD.
  • The rest of the industry has a similar Price/Earnings ratio as MCD.
  • MCD's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.91.
  • Based on the Price/Forward Earnings ratio of 21.88, the valuation of MCD can be described as rather expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as MCD.
  • The average S&P500 Price/Forward Earnings ratio is at 21.99. MCD is around the same levels.
Industry RankSector Rank
PE 23.97
Fwd PE 21.88
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 28.93
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)2.51
PEG (5Y)1.59
EPS Next 2Y9.22%
EPS Next 3Y8.77%

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

8

5. MCD Dividend Analysis

5.1 Amount

  • MCD has a Yearly Dividend Yield of 2.46%.
  • Compared to an average industry Dividend Yield of 1.05, MCD pays a better dividend. On top of this MCD pays more dividend than 84.13% 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 2.46%

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

  • 59.73% of the earnings are spent on dividend by MCD. This is a bit on the high side, but may be sustainable.
  • MCD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP59.73%
EPS Next 2Y9.22%
EPS Next 3Y8.77%
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 (4/28/2026, 8:04:00 PM)

After market: 292.738 +0.35 (+0.12%)

292.39

+2.18 (+0.75%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)02-11
Earnings (Next)05-07
Inst Owners75.36%
Inst Owner Change0.56%
Ins Owners0.2%
Ins Owner Change-1.67%
Market Cap207.84B
Revenue(TTM)26.89B
Net Income(TTM)8.56B
Analysts74.29
Price Target353.45 (20.88%)
Short Float %1.17%
Short Ratio2.6
Dividend
Industry RankSector Rank
Dividend Yield 2.46%
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)2.73%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-3.54%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)1.65%
Valuation
Industry RankSector Rank
PE 23.97
Fwd PE 21.88
P/S 7.73
P/FCF 28.93
P/OCF 19.7
P/B N/A
P/tB N/A
EV/EBITDA N/A
EPS(TTM)12.2
EY4.17%
EPS(NY)13.36
Fwd EY4.57%
FCF(TTM)10.11
FCFY3.46%
OCF(TTM)14.84
OCFY5.08%
SpS37.82
BVpS-2.52
TBVpS-2.52
PEG (NY)2.51
PEG (5Y)1.59
Graham Number0 (-100%)
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
WACC8.18%
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 Y9.55%
EPS Next 2Y9.22%
EPS Next 3Y8.77%
EPS Next 5Y9.09%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y5.06%
Revenue growth 5Y6.96%
Sales Q2Q%9.72%
Revenue Next Year7.35%
Revenue Next 2Y6.68%
Revenue Next 3Y6.07%
Revenue Next 5Y5.79%
EBIT growth 1Y4.59%
EBIT growth 3Y6.22%
EBIT growth 5Y11.46%
EBIT Next Year26.7%
EBIT Next 3Y12.82%
EBIT Next 5Y10.27%
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 8 / 10 and the dividend payout ratio is 59.73%.