Stock Analysis
McDonald's CorporationMCD
P/E 19.57×· 5Y range 18.59–34.98×· bottom 1% of history
Sector: Consumer Cyclical · Industry: Retail-Eating Places
AnalystsBuy41 analystsP/E 19.6× sits at the 1st percentile of its 5.086926762491444-year history.
Cash covers 2% of debt · FY 2025.
PMP Verdict
Mixed fundamentals, cheap valuation
Strengths
- Quality82
- Profitability75
Risks
- Growth30
- Financial Health49
Mixed business trading cheap — priced for skepticism.
Bull Case
- ✓Altman Z 4.5 — safe-zone balance sheet
- ✓P/E 19.6× at bottom 1% of 5-year history
What's happening with MCD
Profile
Strong moat, earnings quality and profitability; growth and financial health lag behind.
How is each axis scored?
- Valuation61/100 · Moderate
- P/E vs own history (1th pct)25/25
- FCF yield (4.5%)12/25
- P/S (6.2x)12/25
- EV/EBIT (16.5x)12/25
- Growth30/100 · Weak
- Revenue CAGR (3.7%)6/25
- Net income CAGR (3.2%)6/25
- EPS CAGR 5Y (4.5%)6/25
- Fwd implied growth (6.5%)12/25
- Profitability75/100 · Strong
- ROIC (27.0%)25/25
- ROE (n/a)0/25
- Net margin (31.7%)25/25
- Operating margin (46.2%)25/25
- Financial Health49/100 · Weak
- Altman Z (4.49)25/25
- Current ratio (0.95)6/25
- Interest coverage (7.8x)18/25
- Net cash / debt (D/A 66%)0/25
- Quality82/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.72)25/25
- FCF conversion (88%)22/25
- Margin stability (σ 6.2%)20/25
- Moat95/100 · Strong
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (42.5%)20/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 19.0%)25/25
About McDonald's Corporation
McDonald's is the world's largest restaurant brand, with nearly $139 billion in systemwide sales across more than 45,000 restaurants and over 100 markets. Show more
The quick-service chain built its early reputation on speed, consistency, and affordable hamburgers, and today its global menu spans burgers, chicken, breakfast, and beverages that have helped popularize American fast-food cuisine worldwide. The firm derives the bulk of its revenue from franchise royalties and rent (about 62%), with the remainder stemming from company-operated restaurants across three segments: the United States (39% of systemwide sales), international operated markets (35%), and international developmental/licensed markets (26%).
Headquarters: CHICAGO, IL · Employees: 150,000 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
61BP/E (TTM)19.5xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 18.6x–35.0x · 1st pct
P/FCF22.2xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield4.5%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 2.6%–4.8% · 99th pct
P/S (TTM)6.19xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 5.9x–9.4x · 1st pct
EV/EBIT16.5xB
Grade B: FairEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 16.1x–26.3x · lowest in history
EV/Sales7.6xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E18.3xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B RatioNeg. EquityC
Grade C: BuybacksPrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.95C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield3.04%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio59.5%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
75B+ROIC27.0%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROENeg. EquityC
Grade C: BuybacksReturn on Equity. Neg. equity = heavy buybacks
ROA14.6%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin31.7%A
Grade A: HighNet Income / Revenue
Operating Margin46.2%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin47.4%C
Grade C: AverageGross Profit / Revenue
FCF Margin28.0%A
Grade A: HighFCF / Revenue
True FCF Margin27.4%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
30DRevenue CAGR3.7%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR3.2%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)4.5%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth6.5%B
Grade B: LowAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-5.8%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income2.0%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue0.6%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
49D+Altman Z-Score4.49A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio0.95xD
Grade D: LowCurrent Assets/Liabilities
Quick Ratio0.82xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage7.8xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment5.1yC
Grade C: AverageYears to repay net debt via FCF
Net Debt/EBIT3.1xC
Grade C: MedLeverage. <2x Low, >4x High
Debt/Equity—
Debt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.02xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
82APiotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.72A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion88.3%A
Grade A: StrongFCF / Net Income
Margin Stability6.2%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue12.9%C
Grade C: AverageTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.46xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Taubert Jennifer L Filed | Taubert Jennifer L | Grant / award | +130 | |
Hsu Michael D. Filed | Hsu Michael D. | Grant / award | +130 | |
Dean Lloyd H Filed | Dean Lloyd H | Grant / award | +157 | |
Elting Lauren B Filed | Elting Lauren B | Option exercise | -48 | |
Elting Lauren B Filed | Elting Lauren B | Option exercise | -990 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Elting Lauren B Filed | Elting Lauren B | Tax withholding | -304 | |
Elting Lauren B Filed | Elting Lauren B | Option exercise | +48 | |
Elting Lauren B Filed | Elting Lauren B | Option exercise | +990 |
Option exercise (M) rows report a derivative leg, not an open-market sale — a paired negative entry is the option position being consumed.
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
95A+ROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)42.5%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor19.0%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$12.42
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$1.16
Cash & short-term investments per share (Finnhub)
Book Value / Share$0.75
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$39.97B
Total debt obligations (short + long term)
Cash & Equiv.$774.00M
Cash and short-term investments
Net Debt$39.20B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$-1.79B
Shareholders' equity (book value)
Asset / Liability0.97xD
Grade D: RiskyTotal Assets / Total Liabilities
Market
Market Cap$171.59B
Current Market Capitalization
Beta0.46B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: McDonald's Corporation (MCD)
Piotroski F-Score of 6/9 indicates mixed fundamentals for McDonald's Corporation. Altman Z-Score of 4.49 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.72 suggests a low likelihood of earnings manipulation.
- McDonald's Corporation converts about 28% of revenue into free cash flow — strong cash generation.
- Takes ~5.1 years to repay net debt from free cash flow.
- The stock currently yields 3.0% in dividends.
See how MCD ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all MCD moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 8 | Regular | 237.12 | +2.70% | 2.33 |
| Oct 8 | After-hours | 236.97 | +2.64% | 2.29 |
| Sep 23 | Regular | 237.34 | -5.20% | -4.46 |
| Sep 23 | After-hours | 238.89 | -4.58% | -3.88 |
Frequently Asked Questions about MCD
What is the current McDonald's Corporation (MCD) stock price?
MCD is trading at $242.97 at the last market close, up 0.19% on the session. PreMarketPrice tracks MCD pre-market, intraday and after-hours prices.
Is MCD stock a buy right now?
PreMarketPrice's quantitative model rates McDonald's Corporation's financial health at 49/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is MCD stock overvalued?
McDonald's Corporation trades at a trailing P/E of 19.5 and our valuation score rates it 61/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does McDonald's Corporation report earnings?
No confirmed earnings date is currently scheduled for MCD. The Earnings section lists recent reports and updates as dates are announced.
What sector does McDonald's Corporation operate in?
McDonald's Corporation operates in the Consumer Cyclical sector, within the Retail-Eating Places industry. The Related Stocks section lists sector peers for comparison.
What does McDonald's Corporation do?
McDonald's is the world's largest restaurant brand, with nearly $139 billion in systemwide sales across more than 45,000 restaurants and over 100 markets.
About McDonald's Corporation (MCD) Stock
McDonald's Corporation (MCD) is a US-listed stock operating in the Consumer Cyclical sector, specifically the Retail-Eating Places industry. As of the latest update, McDonald's Corporation is trading at $242.97, up 0.19% on the day with a market capitalization of $171.6 billion. The financial health score for MCD is 49/100, which indicates moderate financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for MCD stock.
MCD Stock Analysis & Key Metrics
On PreMarketPrice, you can track McDonald's Corporation (MCD) across multiple dimensions:
- Pre-market price & movement: Real-time MCD stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for MCD with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for McDonald's Corporation across multiple reporting periods.
- Financial health score: A composite score of 49/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for MCD.
- Sector peers: Compare MCD against 6 other consumer cyclical stocks on key financial metrics.
Is MCD a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate McDonald's Corporation (MCD) as an investment. The financial health score of 49/100 suggests moderate financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.McDonald's Corporation (MCD) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.