MCD

McDonald's Corporation

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Consumer Cyclical

industry

Restaurants

Exchange

NYSE

County of HQ

US

Next Earnings Date

08/05/2026

Business Summary

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer hamburgers and cheeseburgers, chicken sandwiches and nuggets, wraps, fries, salads, oatmeal, shakes, desserts, sundaes, soft serve cones, bakery items, soft drinks, coffee, and beverages and other beverages, as well as breakfast menu, including biscuit and bagel sandwiches, breakfast burritos, hotcakes, and other sandwiches. As of December 31, 2021, the company operated 40,031 restaurants. McDonald's Corporation was founded in 1940 and is headquartered in Chicago, Illinois.

 


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VALUATION

P/E

22.49

Market Cap ($M USD)

$195.10B

Forward P/E

15.85

PEG

0.38

PRICE TO SALES

7.11

PRICE TO BOOK

-151.76

EV / EBITDA

16.68

5-Year Average P/E

Free Cash Flow Yield

3.61%

DCF Value

$327.38

Graham Number

N/A

Price to FCF

27.72

EV to FCF

35.35

Earnings Yield

4.45%

FCF Yield

3.61%

DIVIDEND

Yield

2.64%

Annual Payout

$7.26

Payout Ratio

59.61%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$12.21

Next Year EPS Growth Estimate

$17.33

Next Year Revenue Growth Estimate

$3.38T

Return on Equity (ROE)

-433.95%

FREE CASH FLOW

Operating Margin

46.01%

Debt-to-Equity

-30.62

Piotroski F-Score

5

Altman Z-Score

4.73

Return on Invested Capital (ROIC)

22.60%

Current Ratio

1.14

Quick Ratio

1.12

Net Debt to EBITDA

3.60

Interest Coverage

7.86

Gross Profit margin

57.35%

FCF PER SHARE

$9.90

REVENUE PER SHARE

$38.62

Analyze MCD on TradingView

Gainseekers Quantitative Analysis

Summary

The market seems to be underestimating McDonald’s relative to its DCF value, with recent pricing indicating it traded below this intrinsic valuation. The Forward P/E of 15.91 suggests a more attractive entry point compared to its current P/E, hinting at expected earnings growth. An Altman Z-score of 4.74 signals robust financial health, reducing bankruptcy risk. However, the negative Price/Book ratio raises questions about asset valuation, though the Earnings Yield of 4.43% reflects decent profitability. Overall, McDonald’s presents a mixed valuation picture, with some metrics suggesting opportunity while others warrant caution.

AI Exposure / Tech Reliance

In the fast-paced restaurant industry, McDonald's is well-positioned to leverage AI and tech advancements to streamline operations and enhance customer experiences. Its global scale and brand recognition provide a solid foundation for integrating cutting-edge technologies. This adaptability is crucial for maintaining its competitive edge in a rapidly evolving market.

The Bull Case

For a value or GARP investor, McDonald's offers compelling reasons to buy. With an impressive ROIC of 22.60%, the company demonstrates exceptional capital efficiency, translating into strong returns on investments. The operating margin of 46.01% underscores its pricing power and operational prowess. Despite a modest FCF Yield of 3.59%, the Piotroski F-Score of 5 indicates moderate financial strength, suggesting room for improvement. These metrics paint a picture of a company capable of generating substantial cash flow and sustaining growth.

The Bear Case

Despite its strengths, McDonald's faces structural risks that cannot be ignored. The Price/Sales ratio of 7.14 and the elevated EV to FCF of 35.46 suggest the stock is priced for perfection, leaving little room for error. The negative Return on Equity and Debt/Equity ratios highlight potential concerns about asset management and financial leverage. Additionally, trading near its 52-week high with a minimal distance to the low indicates technical overextension. These factors could pose significant risks to investors seeking value.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$347.33

Institutional Ownership %

1-Year Beta

0.44

Insider Buying % (6 Mo)

Distance to 52-Week High

24.45%

Distance to 52-Week Low

0.96%

EARNINGS SURPRISE %

3.28%

50-DAY SMA

$308.78

200-DAY SMA

$309.11

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.