McDonald's Corporation (MCD) is a publicly traded company in the Consumer Cyclical — Restaurants industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
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.
Is McDonald's Corporation stock overvalued or undervalued in 2026?
McDonald's Corporation (MCD) trades at 21.0× earnings (P/E), above the median of the 209 consumer cyclicals companies over $2bn in Kaplio's universe. At the decade median (26.7×) $328 (+27 %); at its sector median (17.9×) $220 (-15 %).
Kaplio overview: McDonald's Corporation
Market cap $183B · 52 weeks $231 – $341 (23 % below the high) · P/E 21.0× · 2027 expected P/E 18.8× · Dividend 2.9 % · 11 years rising · Next earnings November 4, 2026 · expected EPS $3.38 · Closing price, Oct 30 · accounts published Aug 4.
- Valuation: P/E 21.0× (cheap).
- Business: 5-year ROIC 17.2 % (solid).
- Balance sheet: Net debt/EBITDA 3.7× (fragile).
- Earnings: 6 of 8 (on track).
What would it be worth at its usual multiples?
At the decade median (26.7×) $328 (+27 %); at its sector median (17.9×) $220 (-15 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.
What matters in consumer cyclicals: 5 of 8 pass
- Net debt / EBITDA 3.7×, fails.
- Current Ratio 1.08, fails.
- EV/Sales vs history 10.1×, fails.
- 5y avg operating margin 44.4 %, passes.
- Inventory turnover 187.7×, passes.
- 5y avg ROIC 17.2 %, passes.
- Altman Z-Score 4.9, passes.
- P/E read in reverse (cyclicals) 21.0×, passes.
Against its peers (reference peers) — McDonald's Corporation: P/E 21.0×; EV/EBITDA 15.7×; ROIC 17.8 %; $183B. Yum! Brands, Inc. (P/E 19.5×; EV/EBITDA 18.4×; ROIC 37.5 %; $42.4B), Chipotle Mexican Grill, Inc. (P/E 29.8×; EV/EBITDA 20.2×; ROIC 16.7 %; $40.3B), Restaurant Brands International Inc. (P/E 18.2×; EV/EBITDA 13.5×; ROIC 11.3 %; $25.3B).
Expensive or cheap against its last ten years?
P/E at each close: today 21.0× · median 26.7× · minimum 18.7× · maximum 42.2× · cheap below 25.4× · expensive above 31.6×. It has been cheaper than today only 2% of the time over its last ten years.
Dividend
solid · Yield 2.9 % ($7.17 per share in 2025) · Years raising it ≥ 11 · 5-year growth +7 % a year · Free cash flow coverage 1.4× · With $1,000 invested today you'd collect $28.80 a year ($2.40 a month).
Kaplio's reading: McDonald's Corporation
Updated on October 24, 2026 · accounts published on August 4, 2026
A highly profitable franchise with record margins that carries a heavy debt load
McDonald's trades at a P/E of 21.0 over the last 12 months, 21 % below its ten-year median of 26.7, a level seen only 2 % of the decade.
- Is McDonald's expensive or cheap? Its P/E of 21.0 has been lower only 2 % of the time in the last decade, yet it is still 17 % above the sector median.
- How is the business doing? Operating margin hit 46 % in fiscal 2025, the highest in 12 years and well above the 40 % average since 2014.
- How strong is the balance sheet? Net debt is $77.97 per share, 30 % of the share price, while the dividend has risen for 11 consecutive fiscal years.
- What to expect from the next earnings? McDonald's reports on November 4, 2026; analysts expect EPS of $3.38, and it beat estimates in 6 of the last 8 quarters.
- Can the balance sheet withstand a recession? Net debt to EBITDA of 3.7× in fiscal 2025 exceeds the 3.0× healthy ceiling for consumer cyclicals, while operating metrics pass easily.
Is McDonald's expensive or cheap?
Over the last 12 months McDonald's trades at a P/E of 21.0, 21 % below its ten-year median of 26.7 and close to the decade low of 18.7. The decade high was 42.2. Against its sector the picture changes: the median P/E across 294 consumer cyclical companies is 17.9, so McDonald's still carries a 17 % premium. The share price is down 18 % over the last 12 months and sits 23 % below its 52-week high of $341.06. EV/EBITDA stands at 15.7× and the free cash flow yield at 5.1 %. By its own history the multiple is low. Next to its peers, investors still pay extra.
How is the business doing?
McDonald's earns an operating margin of 46 % over the last 12 months. Fiscal 2025 was the best of the 12 years since 2014, against an average of 40 % for that period. Growth is modest: revenue rose 3.7 % and EPS 4.9 % year on year. Returns on capital tell the stronger story. ROIC is 18 % over the last 12 months, 8.5 points above the sector median of 9 %, and it has stayed above 10 % in each of the last 10 fiscal years. A net margin of 32 % confirms that a large share of every dollar of sales reaches profit.
How strong is the balance sheet?
Debt is the weak spot. Net debt comes to $77.97 per share in fiscal 2025, equal to 30 % of the current price, and net debt to EBITDA is 3.7×. The current ratio of 1.08 over the last 12 months means short-term assets barely cover short-term obligations. The solvency scores are reassuring: an Altman Z of 4.9 sits in the safe zone and the Piotroski score is 7 of 9. Shareholders keep getting paid. The dividend yield is 2.9 % over the last 12 months, the payout takes 60 % of fiscal 2025 earnings, and the dividend per share has risen for 11 consecutive fiscal years.
What to expect from the next earnings?
The last report, on August 4, 2026, delivered EPS of $3.38 against $3.32 expected, a 1.8 % beat, and McDonald's has topped EPS estimates in 6 of the last 8 quarters. For the quarter due November 4, 2026, the consensus is $3.38, matching last quarter's result. Expectations are steady: the 2026 EPS consensus barely moved in the last 30 days, from $12.91 to $12.88 across 20 analysts, and revenue estimates were also flat. Of the 63 analysts covering the company, 37 rate it a buy, 24 a hold and 2 a sell.
Can the balance sheet withstand a recession?
In consumer cyclicals such as autos, luxury, retail and travel, demand falls in downturns, so the sector is judged on margins and returns across the cycle and on debt that holds up when sales drop. Peter Lynch warned that cyclicals look cheap when they are expensive, so the P/E is set against its own five-year average of 26.8: today's 20.2 is neutral. McDonald's clears the operating tests, with a five-year margin of 44 % against a healthy floor of 8 % and average ROIC of 17 % against 12 %. The misses are financial: net debt to EBITDA of 3.7×, a current ratio of 1.08 below 1.5, and EV/sales of 10.1× above its decade average of 9.2×.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Investor methods verdict
Would Buffett approve McDonald's today?
The Buffett Method would not approve McDonald's today: it fails its quality rules. Business quality: 82 out of 100 (price not included). Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Would Peter Lynch approve McDonald's today?
The Lynch Method would wait for a better price for McDonald's: P/E 21.0 with 14% growth; it asks that the P/E not exceed growth. Business quality: 50 out of 100 (price not included). Lynch classifies it as a stalwart. Kaplio assessment with data from the week of 2026-10-26; not investment advice.
Profitability
| Return on Equity | -561.20% |
| Return on Invested Capital | 17.78% |
| Return on Assets | 14.66% |
| Gross Margin | 57.39% |
| Operating Margin | 46.22% |
| Net Margin | 31.72% |
Financial Health
| Debt / Equity | -53.36 |
| Current Ratio | 1.08 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 4.92 |
Compare it with
Price Performance
| 1 month | +11.31% |
| 3 months | -2.68% |
| Year-to-date | -15.54% |
| 1 year | -13.51% |
| 3 years | -3.27% |
| 5 years | +3.56% |
| 10 years | +131.04% |
Dividend History
Paid in the last 12 months: $7.4400 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-12-01 | $1.9300 |
| 2026-09-01 | $1.8600 |
| 2026-06-02 | $1.8600 |
| 2026-03-03 | $1.8600 |
| 2025-12-01 | $1.8600 |
| 2025-09-02 | $1.7700 |
| 2025-06-02 | $1.7700 |
| 2025-03-03 | $1.7700 |
| 2024-12-02 | $1.7700 |
| 2024-09-03 | $1.6700 |
Amounts adjusted for stock splits.
Related companies: DPZ · CMG · YUM · QSR
Explore sector: Consumer Cyclical · Restaurants
More sections of MCD: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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