(MCD) McDonald’s - NYSE
Sector: Consumer Cyclical | Industry: Restaurants | Exchange: NYSE (USA) | Market Cap: 202.331m USD | Total Return: -3.3% in 12m
Avg Turnover: 1.14B
EPS Trend: 72.7%
Qual. Beats: 2
Rev. Trend: 90.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
McDonald’s Corporation (NYSE: MCD) is a global foodservice retailer that operates and franchises restaurants across diverse international markets. The company’s menu focuses on core categories such as beef, chicken, breakfast items, and beverages, supported by periodic limited-time promotional offerings.
The business model relies heavily on a franchising strategy, utilizing conventional franchises, developmental licenses, and affiliate structures to scale operations while maintaining corporate oversight. In the restaurant sector, this capital-light model allows for higher operating margins compared to company-owned models, as franchisees bear most of the unit-level operating costs and capital expenditures.
Founded in 1940 and headquartered in Chicago, Illinois, the corporation maintains a dominant position in the Quick Service Restaurant (QSR) industry through its extensive real estate portfolio and supply chain integration. Investors may find it useful to examine ValueRay for deeper insights into the companys long-term valuation metrics. The firm continues to focus on digital integration and delivery services to drive comparable store sales growth.
- Digital transformation and loyalty program adoption drive higher average check growth
- Franchise royalty streams provide stable cash flow amidst volatile raw material costs
- Global consumer spending slowdown pressures value menu demand and comparable sales
- Real estate ownership and rental income stabilize long-term capital appreciation
- Geopolitical tensions in international markets impact developmental licensed segment revenue
| Net Income: 8.68b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -0.18 > 1.0 |
| NWC/Revenue: 2.05% < 20% (prev 2.83%; Δ -0.78% < -1%) |
| CFO/TA 0.18 > 3% & CFO 10.5b > Net Income 8.68b |
| Net Debt (68.5b) to EBITDA (14.9b): 4.59 < 3 |
| Current Ratio: 1.14 > 1.5 & < 3 |
| Outstanding Shares: last quarter (713.5m) vs 12m ago -0.65% < -2% |
| Gross Margin: 57.35% > 18% (prev 56.83%; Δ 0.53% > 0.5%) |
| Asset Turnover: 47.17% > 50% (prev 45.64%; Δ 1.54% > 0%) |
| Interest Coverage Ratio: 7.92 > 6 (EBIT TTM 12.7b / Interest Expense TTM 1.61b) |
| A: 0.01 (Total Current Assets 4.71b - Total Current Liabilities 4.15b) / Total Assets 60.0b |
| B: 1.18 (Retained Earnings 70.9b / Total Assets 60.0b) |
| C: 0.22 (EBIT TTM 12.7b / Avg Total Assets 58.2b) |
| D: -0.02 (Book Value of Equity -1.29b / Total Liabilities 61.3b) |
| Altman-Z'' = 5.36 = AAA |
| DSRI: 0.95 (Receivables 2.43b/2.39b, Revenue 27.4b/25.7b) |
| GMI: 0.99 (GM 56.83% / 57.35%) |
| AQI: 0.97 (AQ_t 0.21 / AQ_t-1 0.22) |
| SGI: 1.07 (Revenue 27.4b / 25.7b) |
| TATA: -0.03 (NI 8.68b - CFO 10.5b) / TA 60.0b) |
| Beneish M = -3.05 (Cap -4..+1) = AA |
As of June 12, 2026, the stock is trading at USD 284.77 with a total of 3,508,160 shares traded.
Over the past week, the price has changed by +4.42%,
over one month by +4.41%,
over three months by -11.84% and
over the past year by -3.33%.
McDonald’s has received a consensus analysts rating of 3.91. Therefore, it is recommended to buy MCD.
- StrongBuy: 14
- Buy: 5
- Hold: 14
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 331.3 | 16.3% |
P/E Trailing = 23.4765
P/E Forward = 21.7865
P/S = 7.372
P/B = 146.0672
P/EG = 2.5912
Revenue TTM = 27.4b USD
EBIT TTM = 12.7b USD
EBITDA TTM = 14.9b USD
Long Term Debt = 40.1b USD (from longTermDebt, last quarter)
Short Term Debt = 707.0m USD (from shortTermDebt, last quarter)
Debt = 69.7b USD (from shortLongTermDebtTotal, last quarter) + Leases 14.8b
Net Debt = 68.5b USD (calculated: Debt 69.7b - CCE 1.17b)
Enterprise Value = 271b USD (202b + Debt 69.7b - CCE 1.17b)
Interest Coverage Ratio = 7.92 (Ebit TTM 12.7b / Interest Expense TTM 1.61b)
EV/FCF = 38.47x (Enterprise Value 271b / FCF TTM 7.04b)
FCF Yield = 2.60% (FCF TTM 7.04b / Enterprise Value 271b)
FCF Margin = 25.65% (FCF TTM 7.04b / Revenue TTM 27.4b)
Net Margin = 31.62% (Net Income TTM 8.68b / Revenue TTM 27.4b)
Gross Margin = 57.35% ((Revenue TTM 27.4b - Cost of Revenue TTM 11.7b) / Revenue TTM)
Gross Margin QoQ = 55.90% (prev 57.53%)
Tobins Q-Ratio = 4.51 (Enterprise Value 271b / Total Assets 60.0b)
Interest Expense / Debt = 2.31% (Interest Expense 1.61b / Debt 69.7b)
Taxrate = 21.89% (2.43b / 11.1b)
NOPAT = 9.93b (EBIT 12.7b * (1 - 21.89%))
Current Ratio = 1.14 (Total Current Assets 4.71b / Total Current Liabilities 4.15b)
Debt / Equity = -54.17 (negative equity) (Debt 69.7b / totalStockholderEquity, last quarter -1.29b)
Debt / EBITDA = 4.59 (Net Debt 68.5b / EBITDA 14.9b)
Debt / FCF = 9.73 (Net Debt 68.5b / FCF TTM 7.04b)
Total Stockholder Equity = -2.00b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.92% (Net Income 8.68b / Total Assets 60.0b)
RoE = -434.0% (negative equity) (Net Income TTM 8.68b / Total Stockholder Equity -2.00b)
RoCE = 33.37% (EBIT 12.7b / Capital Employed (Equity -2.00b + L.T.Debt 40.1b))
RoIC = 17.92% (NOPAT 9.93b / Invested Capital 55.4b)
WACC = 4.93% (E(202b)/V(272b) * Re(6.01%) + D(69.7b)/V(272b) * Rd(2.31%) * (1-Tc(0.22)))
Discount Rate = 6.01% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -0.88%
[DCF] Terminal Value 76.08% ; FCFF base≈6.91b ; Y1≈7.22b ; Y5≈8.30b
[DCF] Fair Price = 83.71 (EV 128b - Net Debt 68.5b = Equity 59.5b / Shares 710.5m; r=8.35% [WACC [floored]]; 5y FCF grow 5.00% → 2.50% )
EPS Correlation: 72.69 | EPS CAGR: 2.25% | SUE: 1.39 | # QB: 2
Revenue Correlation: 90.78 | Revenue CAGR: 3.26% | SUE: 0.40 | # QB: 0
EPS current Quarter (2026-06-30): EPS=3.35 | Chg30d=-2.06% | Revisions=-66% | Analysts=29
EPS next Quarter (2026-09-30): EPS=3.45 | Chg30d=-3.17% | Revisions=-86% | Analysts=29
EPS current Year (2026-12-31): EPS=12.99 | Chg30d=-1.62% | Revisions=-62% | GrowthEPS=+6.4% | GrowthRev=+6.0%
EPS next Year (2027-12-31): EPS=14.22 | Chg30d=-0.94% | Revisions=-56% | GrowthEPS=+9.5% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: -86%