A Business at a Glance
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MCDONALDS CORP
MCD
$194.0B
Mkt Cap
$270.67
+2.99%
MCDONALDS CORP (MCD) has a current P/E ratio of 22.7, compared to its historical median P/E of 24.4. The stock is currently considered Fair based on its historical valuation range.
MCDONALDS CORP (MCD) has a 5-year average return on invested capital (ROIC) of 23.1%. This indicates strong capital allocation and a potential competitive advantage.
MCDONALDS CORP (MCD) has a market capitalization of $193K. It is classified as a small-cap stock.
Yes, MCDONALDS CORP (MCD) pays a dividend with a trailing twelve-month yield of 2678085.23%. The company also returns capital through share buybacks, with a buyback yield of 1022664.02%.
Based on historical P/E analysis, MCDONALDS CORP (MCD) appears fair. The current P/E of 22.7 is 7% below its historical median of 24.4. The estimated fair value CAGR (P/E method) is 9.1%.
MCDONALDS CORP (MCD) operates in the Retail-Eating Places industry, within the Consumer Cyclical sector.
MCDONALDS CORP (MCD) reported annual revenue of $26.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
McDonald's is a global quick-service restaurant company that franchises and operates McDonald's restaurants serving locally relevant menus across more than 100 countries, with approximately 95% of its 45,356 restaurants at year-end 2025 franchised. The company operates through three reportable segments: the United States, International Operated Markets, and International Developmental Licensed Markets & Corporate, which collectively span over 75 countries. McDonald's generates revenue primarily through rent and royalties from conventional franchisees (who pay a percentage of sales plus minimum rent), royalties from developmental licensees and affiliates, and sales from company-owned and operated restaurants; the company owns or secures long-term leases on real estate for conventional franchise locations, enabling high-performing restaurants and stable, predictable cash flows. The franchising model is central to the business, allowing franchisees operational autonomy while benefiting from McDonald's global brand, operating system, and financial resources, while company-operated restaurants provide training venues and platforms for testing innovations that can be scaled across the system. The company's competitive advantages include its real estate ownership strategy combined with franchisee co-investment, rigorous operating standards enforced through McDonald's Global Brand Standards, a highly trained workforce supported by Hamburger University, and a digital loyalty platform that reached nearly 210 million ninety-day active users across 70 markets in 2025. McDonald's serves diverse customer segments globally through a mix of value-focused offerings, menu innovation (including chicken and beverage categories), and culturally relevant marketing campaigns, positioning itself as a trusted destination for quality food delivered with convenience and affordability.
【Value-driven growth momentum】 Management expects McDonald's to continue benefiting from disciplined execution of value, menu, and marketing initiatives across all segments in 2026, with underlying momentum supported by the strength of the McValue platform and comparable sales growth expected to accelerate on a two-year basis despite near-term macro headwinds. The company anticipates the low-income consumer will remain under pressure through 2026, but expects mid-single-digit growth opportunities with upper-income consumers, positioning McDonald's to gain market share through its scale and ability to deliver compelling value propositions. Digital innovation, particularly the loyalty app targeting 250 million ninety-day active users by end of 2027, is expected to drive incremental traffic, higher average check, and improved customer satisfaction, while new beverage offerings and chicken portfolio expansion are projected to continue generating incremental occasions and sales lift. Capital allocation priorities remain focused on accelerating restaurant development toward the 50,000-unit target by end of 2027, with approximately 2,600 gross openings planned for 2026, while maintaining financial discipline and returning capital to shareholders through a net income to free cash flow conversion rate expected in the low- to mid-80% range.
| Metric | Target | Period |
|---|---|---|
| Foreign currency impact on EPS | $0.20–$0.30 | FY2026 |
| Net restaurant additions | approximately 2,100 | FY2026 |
| Operating margin | mid- to high-40% range | FY2026 |
| Interest expense increase | 4%-6% | FY2026 |
| Effective tax rate | 21%-23% | FY2026 |
| Capital expenditure | $3.7 billion–$3.9 billion | FY2026 |
| Net income to free cash flow conversion rate | low- to mid-80% range | FY2026 |
| Restaurant openings in China | approximately 1,000 | FY2026 |
| Restaurant openings in IDL segment | more than 1,800 | FY2026 |
| Restaurant openings in US and IOM segments | about 750 | FY2026 |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 27.4B | 26.9B | 25.9B | 25.5B | 23.2B | 23.2B |
| Net Income | 8.7B | 8.6B | 8.2B | 8.5B | 6.2B | 7.5B |
| EPS | $12,114,477.07 | $11.95 | $11.39 | $11.56 | $8.33 | $10.04 |
| Free Cash Flow | 7.0B | 7.2B | 6.7B | 7.3B | 5.5B | 7.1B |
| ROIC | 26.9% | 20.3% | 21.7% | 24.2% | 25.3% | 24.1% |
| Gross Margin | - | 65.0% | 63.7% | 63.6% | 59.6% | 61.4% |
| Debt/Equity | 0.00 | -23.17 | -10.33 | -8.43 | -5.99 | -7.75 |
| Dividends/Share | $7,248,773.65 | $7.17 | $6.78 | $6.23 | $5.66 | $5.25 |
| Operating Income | 12.7B | 12.4B | 11.7B | 11.6B | 9.4B | 10.4B |
| Operating Margin | 46.3% | 46.1% | 45.2% | 45.7% | 40.4% | 44.6% |
| ROE | 0.0% | -306.5% | -193.4% | -158.2% | -116.5% | -121.4% |
| Shares Outstanding | 0M | 717M | 722M | 733M | 742M | 752M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 27.4B | 25.4B | 24.6B | 22.8B | 21.3B | 21.4B | 19.2B | 23.2B | 23.2B | 25.5B | 25.9B | 26.9B | 27.4B |
| Gross Margin | 46.1% | 46.3% | 50.9% | 61.6% | 57.5% | 59.4% | 57.7% | 61.4% | 59.6% | 63.6% | 63.7% | 65.0% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 2.5B | 2.4B | 2.4B | 2.2B | 2.2B | 2.2B | 2.2B | 2.4B | 2.9B | 2.8B | 2.9B | 3.0B | 3.1B |
| EBIT | 7.9B | 7.1B | 7.7B | 9.6B | 8.8B | 9.1B | 7.3B | 10.4B | 9.4B | 11.6B | 11.7B | 12.4B | 12.7B |
| Op. Margin | 29.0% | 28.1% | 31.5% | 41.9% | 41.5% | 42.5% | 38.1% | 44.6% | 40.4% | 45.7% | 45.2% | 46.1% | 46.3% |
| Net Income | 4.8B | 4.5B | 4.7B | 5.2B | 5.9B | 6.0B | 4.7B | 7.5B | 6.2B | 8.5B | 8.2B | 8.6B | 8.7B |
| Net Margin | 17.3% | 17.8% | 19.0% | 22.8% | 27.9% | 28.2% | 24.6% | 32.5% | 26.6% | 33.2% | 31.7% | 31.9% | 31.6% |
| Non-Recurring | 78M | 479M | 692M | 2.6B | 542M | 302M | 296M | 669M | 1.3B | 465M | 549M | 607M | 210M |
| Returns on Capital | |||||||||||||
| ROIC | 17.9% | 17.0% | 20.0% | 25.5% | 22.6% | 21.8% | 20.1% | 24.1% | 25.3% | 24.2% | 21.7% | 20.3% | 26.9% |
| ROE | 33.0% | 45.4% | 191.9% | -189.8% | -124.4% | -83.3% | -59.0% | -121.4% | -116.5% | -158.2% | -193.4% | -306.5% | 0.0% |
| ROA | 13.4% | 12.6% | 13.6% | 16.0% | 17.8% | 15.0% | 9.4% | 14.2% | 11.8% | 15.9% | 14.8% | 14.9% | 14.5% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 6.7B | 6.5B | 6.1B | 5.6B | 7.0B | 8.1B | 6.3B | 9.1B | 7.4B | 9.6B | 9.4B | 10.6B | 10.5B |
| Free Cash Flow | 4.1B | 4.7B | 4.2B | 3.7B | 4.2B | 5.7B | 4.6B | 7.1B | 5.5B | 7.3B | 6.7B | 7.2B | 7.0B |
| Owner Earnings | 5.0B | 4.9B | 4.4B | 4.1B | 6.6B | 7.7B | 5.9B | 8.7B | 6.8B | 9.1B | 8.8B | 9.9B | 9.9B |
| CapEx | 2.6B | 1.8B | 1.8B | 1.9B | 2.7B | 2.4B | 1.6B | 2.0B | 1.9B | 2.4B | 2.8B | 3.4B | 3.5B |
| Maint. CapEx | 1.6B | 1.6B | 1.5B | 1.4B | 215M | 263M | 301M | 330M | 370M | 382M | 447M | 457M | 461M |
| Growth CapEx | 939M | 258M | 305M | 490M | 2.5B | 2.1B | 1.3B | 1.7B | 1.5B | 2.0B | 2.3B | 2.9B | 3.0B |
| D&A | 1.6B | 1.6B | 1.5B | 1.4B | 215M | 263M | 301M | 330M | 370M | 382M | 447M | 457M | 461M |
| CapEx/OCF | 38.4% | 27.7% | 30.1% | 33.4% | 39.4% | 29.5% | 26.2% | 22.3% | 25.7% | 24.5% | 29.4% | 31.9% | 33.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 3.2B | 3.2B | 3.1B | 3.1B | 3.3B | 3.6B | 3.8B | 3.9B | 4.2B | 4.5B | 4.9B | 5.1B | 5.2B |
| Dividend Yield | 4.5% | 4.4% | 3.7% | 3.1% | 3.0% | 2.8% | 2.8% | 2.5% | 2.4% | 2.4% | 2.5% | 2.4% | 2678085.2% |
| Share Buybacks | 3.2B | 6.1B | 11.2B | 4.7B | 5.2B | 5.0B | 908M | 846M | 3.9B | 3.1B | 2.8B | 2.1B | 2.0B |
| Buyback Yield | 4.5% | 6.9% | 13.1% | 4.0% | 4.4% | 3.8% | 0.6% | 0.5% | 2.1% | 1.5% | 1.4% | 0.9% | 1022664.0% |
| Stock-Based Comp | 113M | 110M | 131M | 118M | 125M | 110M | 92M | 139M | 167M | 175M | 172M | 165M | 180M |
| Debt Repayment | 548M | 1.1B | 823M | 1.6B | 1.8B | 2.1B | 2.4B | 2.2B | 2.2B | 2.4B | 2.8B | 4.8B | 4.8B |
| Balance Sheet | |||||||||||||
| Net Debt | 13.4B | 17.0B | 24.4B | 26.0B | 30.3B | 34.1B | 33.1B | 30.9B | 33.3B | 35.1B | 38.1B | 40.7B | 38.1B |
| Cash & Equiv. | 2.1B | 7.7B | 1.2B | 2.5B | 866M | 899M | 3.4B | 4.7B | 2.6B | 4.6B | 1.1B | 774M | 1.2B |
| Long-Term Debt | 14.9B | 24.1B | 25.9B | 29.5B | 31.1B | 34.1B | 35.2B | 35.6B | 35.9B | 37.2B | 38.4B | 40.0B | 40.1B |
| Debt/Equity | 1.20 | 3.49 | -11.65 | -8.72 | -4.98 | -4.26 | -4.67 | -7.75 | -5.99 | -8.43 | -10.33 | -23.17 | 0.00 |
| Interest Coverage | 13.8 | 11.2 | 8.8 | 10.4 | 9.0 | 8.1 | 6.0 | 8.7 | 7.8 | 8.6 | 7.8 | 7.8 | 7.9 |
| Equity | 12.9B | 7.1B | -2.2B | -3.3B | -6.3B | -8.2B | -7.8B | -4.6B | -6.0B | -4.7B | -3.8B | -1.8B | -1.3B |
| Total Assets | 34.2B | 37.9B | 31.0B | 33.8B | 32.8B | 47.5B | 52.6B | 53.9B | 50.4B | 56.1B | 55.2B | 59.5B | 60.0B |
| Total Liabilities | 21.4B | 30.9B | 33.2B | 37.1B | 39.1B | 5.5B | 6.4B | 6.3B | 5.6B | 60.9B | 5.4B | 5.2B | 1.2B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 43.3B | 44.6B | 46.2B | 48.3B | 50.5B | 52.9B | 53.9B | 57.5B | 59.5B | 63.5B | 66.8B | 70.3B | 70.9B |
| Working Capital | 1.4B | 6.7B | 1.4B | 2.4B | 1.1B | -63M | 62M | 3.1B | 1.6B | 1.1B | 738M | -198M | 563M |
| Current Assets | 4.2B | 9.6B | 4.8B | 5.3B | 4.1B | 3.6B | 6.2B | 7.1B | 5.4B | 8.0B | 4.6B | 4.2B | 4.7B |
| Current Liabilities | 2.7B | 3.0B | 3.5B | 2.9B | 3.0B | 3.6B | 6.2B | 4.0B | 3.8B | 6.9B | 3.9B | 4.4B | 4.1B |
| Per Share Data | |||||||||||||
| EPS | 4.82 | 4.80 | 5.44 | 6.37 | 7.54 | 7.88 | 6.31 | 10.04 | 8.33 | 11.56 | 11.39 | 11.95 | 12,114,477.07 |
| Owner EPS | 5.04 | 5.16 | 5.12 | 4.99 | 8.43 | 10.14 | 7.83 | 11.54 | 9.24 | 12.36 | 12.23 | 13.86 | 13,866,853.54 |
| Book Value | 13.02 | 7.51 | -2.56 | -4.01 | -7.97 | -10.74 | -10.44 | -6.12 | -8.10 | -6.42 | -5.26 | -2.50 | -1,802,382.62 |
| Cash Flow/Share | 6.82 | 6.93 | 7.03 | 6.81 | 8.87 | 10.62 | 8.36 | 12.16 | 9.96 | 13.12 | 13.09 | 14.72 | 12,808,689.56 |
| Dividends/Share | 3.28 | 3.44 | 3.61 | 3.83 | 4.19 | 4.73 | 5.04 | 5.25 | 5.66 | 6.23 | 6.78 | 7.17 | 7,248,773.65 |
| Shares Out. | 987.1M | 943.6M | 861.5M | 815.1M | 785.7M | 764.6M | 749.7M | 751.5M | 741.5M | 732.6M | 721.9M | 716.6M | 0.0M |
| Valuation | |||||||||||||
| P/E Ratio | 14.9 | 19.4 | 18.2 | 22.5 | 19.8 | 21.9 | 30.3 | 24.3 | 29.7 | 24.4 | 25.2 | 26.0 | 0.0 |
| P/FCF | 17.1 | 18.6 | 20.1 | 31.6 | 27.7 | 23.0 | 31.0 | 25.9 | 33.4 | 28.5 | 31.0 | 31.0 | 0.0 |
| EV/EBIT | 10.3 | 13.5 | 14.1 | 14.8 | 16.6 | 18.1 | 24.0 | 20.3 | 22.9 | 20.5 | 20.8 | 21.1 | 3.0 |
| Price/Book | 5.5 | 12.4 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Sales | 2.6 | 2.9 | 3.3 | 4.3 | 5.2 | 6.1 | 6.9 | 6.8 | 7.5 | 7.5 | 7.6 | 8.0 | 0.0 |
| FCF Yield | 5.8% | 5.4% | 5.0% | 3.2% | 3.6% | 4.3% | 3.2% | 3.9% | 3.0% | 3.5% | 3.2% | 3.2% | 3644826.4% |
| Market Cap | 70.9B | 87.8B | 85.4B | 117.0B | 117.2B | 131.9B | 143.1B | 183.7B | 183.4B | 206.8B | 207.1B | 222.6B | 193K |
| Avg. Price | 71.72 | 77.04 | 95.46 | 121.46 | 139.26 | 170.27 | 176.78 | 211.02 | 234.04 | 262.69 | 272.45 | 300.61 | 270.67 |
| Year-End Price | 71.82 | 93.09 | 99.13 | 143.48 | 149.20 | 172.48 | 190.93 | 244.45 | 247.34 | 282.26 | 286.93 | 310.68 | 270.67 |
MCDONALDS CORP passes 5 of 9 quality checks, suggesting mixed fundamentals.
MCDONALDS CORP trades at 22.7x trailing earnings, compared to its 15-year median P/E of 24.4x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 26.8x vs a median of 29.7x. The company's 5-year average ROIC is 23.1% with a gross margin of 62.6%. Total shareholder yield (dividends + buybacks) is 3700749.3%. At current prices, the estimated annualized return to fair value is +8.2%.
MCDONALDS CORP (MCD) has a net profit margin of 31.9%. This is a strong margin indicating high profitability.
MCDONALDS CORP (MCD) generated $7.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
MCDONALDS CORP (MCD) reported earnings per share (EPS) of $11.95 in its most recent fiscal year.
MCDONALDS CORP (MCD) has a return on equity (ROE) of -306.5%. A negative ROE may indicate losses or negative equity.
MCDONALDS CORP (MCD) has a 5-year average gross margin of 62.6%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 19 years of financial data for MCDONALDS CORP (MCD), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
MCDONALDS CORP (MCD) has a book value per share of $-2.50, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects McDonald's to continue benefiting from disciplined execution of value, menu, and marketing initiatives across all segments in 2026, with underlying momentum supported by the strength of the McValue platform and comparable sales growth expected to accelerate on a two-year basis despite near-term macro headwinds. The company anticipates the low-income consumer will remain under pressure through 2026, but expects mid-single-digit growth opportunities with upper-income consumers, positioning McDonald's to gain market share through its scale and ability to deliver compelling value propositions. Digital innovation, particularly the loyalty app targeting 250 million ninety-day active users by end of 2027, is expected to drive incremental traffic, higher average check, and improved customer satisfaction, while new beverage offerings and chicken portfolio expansion are projected to continue generating incremental occasions and sales lift. Capital allocation priorities remain focused on accelerating restaurant development toward the 50,000-unit target by end of 2027, with approximately 2,600 gross openings planned for 2026, while maintaining financial discipline and returning capital to shareholders through a net income to free cash flow conversion rate expected in the low- to mid-80% range.
Based on recent SEC filings and earnings calls, MCDONALDS CORP (MCD) has provided the following forward guidance: Foreign currency impact on EPS: $0.20–$0.30 (FY2026); Net restaurant additions: approximately 2,100 (FY2026); Operating margin: mid- to high-40% range (FY2026); Interest expense increase: 4%-6% (FY2026); Effective tax rate: 21%-23% (FY2026), plus 5 additional metrics.
Foreign currency impact on EPS (FY2026): “We expect foreign currency to be a full year tailwind to 2026 EPS, totaling in the range of $0.20-$0.30 based on current exchange rates.”
Net restaurant additions (FY2026): “we anticipate about 4.5% unit growth from the approximately 2,100 net restaurant additions in 2026”
Operating margin (FY2026): “We expect our operating margin to be in the mid- to high-40% range and to expand from our 46.9% adjusted operating margin in 2025.”
Interest expense increase (FY2026): “we expect interest expense to increase between 4%-6% from the prior year, primarily due to higher average interest rates”
Effective tax rate (FY2026): “expect our full year effective tax rate to be between 21% and 23%, with some volatility quarter to quarter”
Capital expenditure (FY2026): “We expect our capital expenditure spend to be between $3.7 billion-$3.9 billion this year”
Net income to free cash flow conversion rate (FY2026): “we're targeting our net income to free cash flow conversion rate in 2026 to be in the low- to mid-80% range”
Restaurant openings in China (FY2026): “We remain on track to open approximately 1,000 new restaurants in China this year.”
No recent press releases.