Stocks · Hotels, Restaurants & Leisure

McDonald's Corp (MCD)

$249.56

−0.51% last session

Market value

$177.5bn

P/E ratio

20.2

Dividend yield

2.36%

52-week range

$229–$342

What McDonald's Corp does

McDonald's Corporation operates and licenses its renowned fast-food chain worldwide, with a significant presence in both the United States and international markets. Their comprehensive menu offers classic items like hamburgers and cheeseburgers, a variety of chicken options including sandwiches and nuggets, alongside lighter choices such as wraps, french fries, and salads. For breakfast, patrons can select from offerings like biscuit and bagel sandwiches, breakfast burritos, and hotcakes.

Hotels, Restaurants & Leisure · based in the US · listed since 1965Biggest source of revenue: International Operated Markets (51%) · breakdownCompany website ↗

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tap a grade for the details

CGrowthModest growth

Sales growth, last 12 months6.3% · 55/100

Sales growth a year, 5 years7.0% · 58/100

Earnings per share growth a year, 5 years13.6% · 79/100

AProfitabilityHighly profitable

Net profit margin31.7% · 100/100

Return on equity95% · 100/100

Return on capital, 10-year average22.8% · 94/100

CFinancial strengthOkay

Net debt ÷ operating profit3.2× · 37/100

Interest cover8× · 74/100

Current ratio (short-term assets ÷ debts)1.08 · 64/100

BValuationReasonably priced

P/E against its own 10-year history0th percentile · 100/100

Free cash flow yield4.4% · 69/100

PEG (P/E ÷ growth)1.5 · 66/100

Our base-case value vs price−20% · 30/100

FMomentumStrong downtrend

Share price, last 12 months−19.1% · 21/100

Share price, last 3 months−6.2% · 31/100

Price

−19.5% over 1Y

27 Oct 2026$249.45

Daily closing prices. Source: Twelve Data.

Bull vs bear

The numbers are finely balanced (12 vs 10)

The bull case

Cheap against its own history●●●

P/E 20.3 vs a 10-year median of 25.6.

Very high returns on capital●●○

Averages 23% after tax, a sign of a durable advantage (a 'moat').

Margins widening●●○

Operating margin up from 40.4% to 46.1% in three years.

Shareholder-friendly management●●○

Passes 5 of 7 capital-allocation checks.

Cash machine●○○

Turns 27% of revenue into free cash flow.

Analysts see upside●○○

Average target 15% above the price.

The bear case

Little growth●●○

Revenue up only 0.6% a year over 10 years: barely ahead of inflation.

Cyclical revenue●●○

Revenue fell in 5 of the last 10 years: results can swing with the economy.

Heavy debt●●○

Net debt is 3.2× a year's operating profit.

Our cash-flow model says it's pricey●●○

Base case 20% below today's price.

Has overpaid for deals before●○○

$20m of past acquisitions written off since 2015 (value paid that the company no longer expects to get back). Goodwill is 5.6% of assets

Recoveries can take years●○○

Took 95 months to recover after the 1972 fall.

Can you answer every bear point? Put your answers in your thesis under risks.

See the full picture on McDonald's Corp

Ten years of results, revenue by product and region, a management scorecard, bear/base/bull valuations, analyst targets, every SEC filing explained, and a thesis that checks itself after each report. Free.

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McDonald's Corp (MCD)

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See the full picture on McDonald's Corp

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Bull vs bear

Bull vs bear

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