NYSE: MCD · Restaurants
McDonald's
McDonald’s, based in Chicago, operates and franchises McDonald’s restaurants; of 45,356 restaurants at year-end 2025, about 95% were franchised. It earns most of its profit from franchised revenues — rent, royalties and initial fees — which reached $16,548 million in 2025, alongside $9,690 million of sales at Company-operated restaurants. Total revenue rose to $26,885 million and operating income to $12,393 million (a margin of about 46%), with net income of $8,563 million. Its segments are the U.S., International Operated Markets and International Developmental Licensed Markets & Corporate. McDonald’s plans to open about 2,600 restaurants in 2026, aims to grow sales to loyalty members to $45 billion by 2027, and raised its quarterly dividend 5% to $1.86 in late 2025. Years of buybacks have left shareholders’ equity negative.
Last updated
Analysis last edited: October 29, 2026 · Financial data fetched: October 29, 2026 13:23 (SEC EDGAR) · Source 10-K filed: February 24, 2026
Built on10-K FY2025 · filed 2026-02-2410-Q (quarter ended 2026-09-30) · filed 2026-11-06Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 7.0%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 46.1%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +19.5 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- 3.1x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.23x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 22.3x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.51
Higher than 41% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 95% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 86% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 74% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 28% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-06-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$275.70close on 2026-11-04
Market cap$195.91B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 22.3x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- —
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 18.4x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 3.7%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 2.6%
At FY2025 year-end: 25.6x
Earnings: trailing 12 months to 2026-06-30
At FY2025 year-end: —
Book value at FY2025 year-end
At FY2025 year-end: 20.0x
EBITDA for FY2025
At FY2025 year-end: 3.3%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Jun 30, 2026.
These figures are behind: a newer quarter was reported on Nov 4, 2026, but SEC's structured data doesn't include it yet. Read the release ↗
- Revenue$6.84B → $7.1B (vs. a year earlier)↑ +3.7%$6.84B → $7.1B (vs. a year earlier)
- Operating margin47.2% → 47.0% (vs. a year earlier)→ −0.2 pts47.2% → 47.0% (vs. a year earlier)
- Net income$2.25B → $2.36B (vs. a year earlier)↑ +4.8%$2.25B → $2.36B (vs. a year earlier)
- Diluted EPS$3.14 → $3.32 (vs. a year earlier)↑ +5.7%$3.14 → $3.32 (vs. a year earlier)
- Cash$1.17B → $822M (vs. previous quarter-end)↓ −29.7%$1.17B → $822M (vs. previous quarter-end)
- Long-term debt$40.11B → $39.86B (vs. previous quarter-end)↓ −0.6%$40.11B → $39.86B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Nov 4, 2026.
Key changes
Systemwide sales up 4% to over $38B. Source sentence
Global Systemwide sales* increased 4% to over $38 billion for the quarter
Operating income up 7%. Source sentence
Consolidated operating income increased 7% and adjusted operating income increased 8% for the quarter
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- MCDONALDS CORP
- Headquarters
- CHICAGO, IL
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: MCD
- Industry
- Restaurants
- CIK
- 63908
- Website
- https://www.mcdonalds.com/ ↗
Workforce (as of FY2025 year-end)
Employees
150,000
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 36–42 days after quarter end (Feb 11, 2026; Feb 10, 2025; Feb 5, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 29–42 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Nov 4, 2026 (+35 days) | Nov 6, 2026 10-Q (+37 days) |
| Q2 FY2026 | Jun 30, 2026 | Aug 4, 2026 (+35 days) | Aug 7, 2026 10-Q (+38 days) |
| Q1 FY2026 | Mar 31, 2026 | May 7, 2026 (+37 days) | May 7, 2026 10-Q (+37 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 11, 2026 (+42 days) | Feb 24, 2026 10-K (+55 days) |
| Q3 FY2025 | Sep 30, 2025 | Nov 5, 2025 (+36 days) | Nov 5, 2025 10-Q (+36 days) |
| Q2 FY2025 | Jun 30, 2025 | Aug 6, 2025 (+37 days) | Aug 6, 2025 10-Q (+37 days) |
| Q1 FY2025 | Mar 31, 2025 | May 1, 2025 (+31 days) | May 12, 2025 10-Q (+42 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 10, 2025 (+41 days) | Feb 25, 2025 10-K (+56 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 29, 2024 (+29 days) | Nov 7, 2024 10-Q (+38 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 29, 2024 (+29 days) | Aug 8, 2024 10-Q (+39 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 30, 2024 (+30 days) | May 8, 2024 10-Q (+38 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 5, 2024 (+36 days) | Feb 22, 2024 10-K (+53 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Restaurants
McDonald’s restaurants
Quick-service restaurants under the McDonald’s brand.
Digital
Loyalty program and delivery
Loyalty in about 70 markets; delivery from ~90% of restaurants.
From the Form 10-K, FY2025.
U.S. and worldwide share of flagship products/services
The 10-K gives no market-share figures.
Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-06-30)
07
Recent strategic focusSite analysis
Recent developments.
Growth plan
Expects ~2,600 openings in 2026, with developmental licensees and affiliates funding over 1,800.
Source: Form 10-K (FY2025)
Loyalty
Aims to grow Systemwide sales to loyalty members to $45.0B by end-2027.
Source: Form 10-K (FY2025)
Dividend increase
Quarterly dividend raised 5% to $1.86 (annual $7.44) in Q4 2025.
Source: Form 10-K (FY2025)
Capex ÷ D&A (FY2025)
7.36x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$3,365M ÷ $457M = 7.36x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Where the money goes, over time
Unit: $M. Capex went from $1.64B in FY2020 to $3.37B in FY2025
- Capex
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$26.89B
As reported in the 10-K
Revenue CAGR (5 years)
+7.0%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($26,885M ÷ $19,208M) ^ (1÷5) − 1 = 7.0%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
46.1%▲favorable
+8.0pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$12,393M ÷ $26,885M × 100 = 46.1%
ROE (FY2025)
—▼caution
6-year average: —
As reported in the 10-K
P/B (FY2025 end)
—
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
20.0x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($217,181M + $40,771M − $774M) ÷ ($12,393M + $457M) = 20.0x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +7.0% a year over 5 years (strong growth)
From $19.21B in FY2020 to $26.89B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 38.1% → 46.1%
How much operating profit is left per $100 of revenue. It moved +8.0 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is -3.0% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Franchising (conventional, developmental license, affiliate)
- Company-operated restaurants
- Loyalty and delivery platforms
06 · what it draws on
Key resources
- 45,356 restaurants (≈95% franchised)
- Real estate under many restaurants
- Over 150,000 Company and subsidiary employees
02 · why customers buy
Value propositions
- Food and drinks; McDonald's competes on product choice, quality, affordability, service and location.
04 · how it keeps them
Customer relationships
- Loyalty programs in 70 markets; long-term franchise agreements with operators.
03 · how it reaches them
Channels
- Franchised and company-operated restaurants, drive-thru, delivery and its app.
01 · who it serves
Customer segments
- Franchisees and licensees
- Consumers worldwide
09 · where money goes
Cost structure
FY2025, share of revenue ($26.89B)
- Selling, general & administrative11.3%
- Other operating costs (incl. cost of goods sold)42.6%
Operating profit left: 46.1% of revenue. Depreciation & amortization (inside the costs above): $457M. Capital spending: $3.37B.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Franchised revenues $16,548M (2025)
- Company-operated sales $9,690M
- Other revenues ≈$647M
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Owns or leases much of the real estate under its restaurants and franchises them to independent operators for rent and royalties based on sales, while running some restaurants directly; developmental licensees and affiliates run whole markets.
01 what it draws on
Inputs & resources
- 45,356 restaurants (≈95% franchised)
- Real estate under many restaurants
- Over 150,000 Company and subsidiary employees
02 what it does
Activities
- Franchising (conventional, developmental license, affiliate)
- Company-operated restaurants
- Loyalty and delivery platforms
03 who it serves
Customers
- Franchisees and licensees
- Consumers worldwide
04 how money comes in
How it earns
- Franchised revenues $16,548M (2025)
- Company-operated sales $9,690M
- Other revenues ≈$647M
How the business makes money
- Delivery available from nearly 41,000 restaurants in about 100 markets.
- About 2,600 new restaurants planned for 2026.
- Returned about $7.1B to shareholders in 2025.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
McDonald’s markets can be disrupted by government actions.
Trade & export rules
Government actions
Government actions can disrupt operations or prices in a market.
Constrains the businessTouches: CustomersSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
International Operated Markets
13,410 (51%)U.S.
10,486 (40%)International Developmental Licensed Markets & Corporate
2,341 (9%)
Source: Form 10-K (FY2025) Franchised revenues plus Company-operated sales by segment (excludes other revenues); total revenue $26,885M.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Franchisees and consumers.
Named by the company
No customer concentration.
Suppliers
Independent suppliers of food and packaging to the system.
Named by the company
No single material supplier is named.
12
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
The 10-K says McDonald’s competes with international, national, regional and local food service companies, without naming them.
Competitors named in the 10-K
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
13
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24
Financial stability & capital efficiency
Unit: %
- Equity ratio
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 19,208 | 23,223 | 23,183 | 25,494 | 25,920 | 26,885 |
| Operating income | 7,324 | 10,356 | 9,371 | 11,647 | 11,712 | 12,393 |
| Pretax income | 6,141 | 9,128 | 7,826 | 10,522 | 10,344 | 10,897 |
| Net income (attributable) | 4,731 | 7,545 | 6,177 | 8,469 | 8,223 | 8,563 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 20.9% | -0.2% | 10.0% | 1.7% | 3.7% |
| Operating margincalcoperating income ÷ revenue × 100 | 38.1% | 44.6% | 40.4% | 45.7% | 45.2% | 46.1% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 24.6% | 32.5% | 26.6% | 33.2% | 31.7% | 31.9% |
| Balance sheet ($M) | ||||||
| Total assets | 52,627 | 53,854 | 50,436 | 56,147 | 55,182 | 59,515 |
| Total equity | -7,825 | -4,601 | -6,003 | -4,707 | -3,797 | -1,791 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 37,440 | 35,623 | 35,904 | 39,693 | 39,214 | 40,771 |
| Equity ratio | -14.9% | -8.5% | -11.9% | -8.4% | -6.9% | -3.0% |
| Cash flow ($M) | ||||||
| Operating CF | 6,265 | 9,142 | 7,387 | 9,612 | 9,447 | 10,551 |
| Investing CF | -1,546 | -2,166 | -2,678 | -3,185 | -5,346 | -3,822 |
| Financing CF | -2,249 | -5,596 | -6,580 | -4,374 | -7,495 | -7,125 |
| Free cash flowcalccash flow from operations − capital expenditures | 4,624 | 7,102 | 5,488 | 7,255 | 6,672 | 7,186 |
| Cash and equivalents | 3,449 | 4,709 | 2,584 | 4,579 | 1,085 | 774 |
| Per share & other | ||||||
| EPS ($) | 6.31 | 10.04 | 8.33 | 11.56 | 11.39 | 11.95 |
| BVPS ($) | -10.50 | -6.18 | -8.21 | -6.51 | -5.31 | -2.52 |
| Dividend per share ($) | 5.04 | 5.25 | 5.66 | 6.23 | 6.78 | 7.17 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 79.9% | 52.3% | 67.9% | 53.9% | 59.5% | 60.0% |
| P/E (x) | 34.0 | 26.7 | 31.6 | 25.7 | 25.5 | 25.6 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 25.4 | 21.6 | 23.2 | 20.7 | 20.2 | 20.0 |
Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-06-30 | $7.1B+3.7% | $3.34B+3.3% | $2.36B+4.8% | $3.32 |
| 2026-03-31 | $6.52B+9.4% | $2.95B+11.5% | $1.98B+6.2% | $2.78 |
| 2025-12-31 † | $7.01B+9.7% | $3.16B+10.0% | $2.16B+7.3% | — |
| 2025-09-30 | $7.08B+3.0% | $3.36B+5.3% | $2.28B+1.0% | $3.18 |
| 2025-06-30 | $6.84B | $3.23B | $2.25B | $3.14 |
| 2025-03-31 | $5.96B | $2.65B | $1.87B | $2.60 |
| 2024-12-31 † | $6.39B | $2.87B | $2.02B | — |
| 2024-09-30 | $6.87B | $3.19B | $2.26B | $3.13 |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
14
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
26.5%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$12,393M × (1 − 20.5%) ÷ $37,199M × 100 = 26.5%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
7.02%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $217.18B ÷ ($217.18B + $40.77B) = 84.2%
e.g.Debt weight: $40.77B ÷ ($217.18B + $40.77B) = 15.8%
e.g.WACC: 7.8% × 84.2% + 3.9% × (1 − 20.5%) × 15.8% = 7.02%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 5.8%–8.5% and ROIC − WACC runs +17.9 to +20.7 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 7.02% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.51 (price-derived adjusted beta, but correlation with the market is low (R² 0.05), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 7.76%
- Cost of debt
- 3.88%
- Tax rate
- 20.5% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 84% : 16%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 7.02%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.51 (price-derived adjusted beta. Raw β 0.27, R² 0.05, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.266 + 0.33 = 0.508
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.51 × 5.5% = 7.8%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
4.0%
Perpetual FCF growth: g = r − FCF ÷ EV = 7.0% − 3.0%
Past FCF growth (FY2020–FY2025)
+9.2%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+7.0%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $7.19B (operating CF − capex); enterprise value $235.91B = market cap $195.91B (latest close, 2026-11-04) + debt $40.77B − cash and short-term investments $774M; r = WACC of 7.0% using this page’s default assumptions (β 0.51, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$239.53B
FCF $7.19B ÷ (7.0% − 4.0%)
Theoretical ÷ actual enterprise value
1.02x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 5.0% | 6.0% | 7.0% | 8.0% | 9.0% |
|---|---|---|---|---|---|
| 0% | 0.61x | 0.51x | 0.44x | 0.38x | 0.34x |
| 2% | 1.02x | 0.76x | 0.61x | 0.51x | 0.44x |
| 4% | 3.05x | 1.52x | 1.02x | 0.76x | 0.61x |
| 6% | — | — | 3.05x | 1.52x | 1.02x |
| 8% | — | — | — | — | 3.05x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
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Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.21x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -3.5%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 114%
Most profit comes from core operations.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-24
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$10,551M ÷ $8,563M = 1.23x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$12,393M ÷ $10,897M × 100 = 114%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
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Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 74.6%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 25.4%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 358 of 416
- Beta (adjusted)
- 0.51
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 86% of covered companies have more
above 1 = swings more than the market
- 528.0M shares reported by 3,460 13F filers ÷ 707.6M shares outstanding on 2026-06-30. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table (percentage computed from the group’s share count ÷ shares outstanding); includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed None (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-06-30)
18
Strengths & weaknessesSite analysis
Strengths
1. Franchise economics
Franchised revenues of $16,548M with operating margin around 46%.
Evidence: Form 10-K (FY2025)
2. Global scale
45,356 restaurants; delivery offered in about 100 markets.
Evidence: Form 10-K (FY2025)
3. Dividend growth
Dividends per share rose every year from $5.04 (2020) to $7.17 (2025).
Evidence: Form 10-K (FY2025)
Weaknesses
1. Negative equity
Shareholders’ deficit of $1.8B; debt about $40.8B.
Evidence: Form 10-K (FY2025)
2. U.S. company-operated sales decline
U.S. Company-operated sales fell 3% in 2025.
Evidence: Form 10-K (FY2025)
3. Rising capex
Capital expenditures rose from $1.6B (2020) to $3.4B (2025).
Evidence: Form 10-K (FY2025)
19
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
25.6x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
2.35%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
60%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
3.3%
(Operating CF − capex) ÷ market cap
1. Royalty-like income
Franchise rent and royalties are stable and high-margin.
- What has to hold
- Franchisees stay healthy.
- The other side
- Franchisee profitability pressures.
Evidence: Form 10-K (FY2025)
2. Dividend aristocrat
Consistent dividend growth.
- What has to hold
- Cash flow keeps rising.
- The other side
- High leverage.
Evidence: Form 10-K (FY2025)
Shareholders’ equity is negative, so book value per share is not meaningful.
20
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
0.5x
$774M vs. $1.52B
Interest coverage (operating income ÷ interest expense)
7.8x
$12.39B vs. $1.58B
Free cash flow ÷ dividends paid
1.4x
$7.19B vs. $5.12B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -0.2% in FY2022 ($23.22B → $23.18B) | Yes, by FY2023 |
| Operating income | -9.5% in FY2022 ($10.36B → $9.37B) | Yes, by FY2023 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Resilient through COVID
Remained profitable in 2020 (net income $4,730M).
Source: Form 10-K (FY2025)
21
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
McDonald’s discloses no specific material legal proceedings; it faces ordinary-course claims involving franchisees, suppliers, employees, customers and governments.
Company statement:
Based on Form 10-K (FY2025), reviewed 2026-10-29. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
22
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Competition & technology shift
Food service competition
- Company disclosure (summarized from the 10-K)
- Competes with international, national, regional and local quick-service, fast casual and other food service companies.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 2Demand & macro
Consumer spending
- Company disclosure (summarized from the 10-K)
- Economic conditions and consumer spending affect restaurant traffic.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3Labor & workforce
Labor and reputation
- Company disclosure (summarized from the 10-K)
- Workplace issues at Company or franchised restaurants, boycotts or labor campaigns could hurt the brand.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4FX & interest rates
Currency
- Company disclosure (summarized from the 10-K)
- More than half of franchised revenue comes from outside the U.S.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 5Law & regulation
Food safety and regulation
- Company disclosure (summarized from the 10-K)
- Food safety incidents and regulation affect the brand.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
23
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (8)
In addition, the AI tools we are incorporating into certain aspects of our business may not generate the intended efficiencies, may increase our exposure to risks (both known and unknown), and could adversely impact our business results. Read more
These risks include potential operational disruptions, data integrity issues, and unintended consequences from algorithmic decision-making. Further, emerging global and U.S. regulations governing AI use – including requirements for responsible use, transparency, bias mitigation, accountability, and explainability – may impose significant compliance obligations and increase reputational risk. Failure to comply with these standards or to effectively manage associated risks, including ethical considerations such as fairness, non-discrimination, and responsible deployment, could result in regulatory penalties, litigation, operational setbacks, or adverse…
Dario Baroni , 52, is Senior Vice President – President, International Developmental Licensed Markets, a position he has held since June 2025. Read more
Prior to that, Mr. Baroni served in roles of increasing responsibility, most recently as the Managing Director of McDonald’s Italy. Mr. Baroni has served the Company for over nine years.
Jill McDonald , 61, is Executive Vice President – Chief Restaurant Experience Officer, a position she has held since May 2025. Read more
Prior to that, Ms. McDonald was the Executive Vice President – President, International Operated Markets, a role that she had held since September 2022. Prior to joining the Company, Ms. McDonald spent time at Costa Coffee, as its Chief Executive Officer, and Marks & Spencer Group plc, as its Managing Director for Clothing, Home & Beauty. Ms. McDonald also previously worked at the Company between June 2006 and March 2015.
Manu Steijaert , 55, is Executive Vice President – President, International Operated Markets, a role he has held since May 2025 and previously held from January 2019 to July 2021. Read more
He also served as Executive Vice President – Global Chief Customer Officer between August 2021 and May 2025. He has served the Company over 23 years.
Common stock in treasury, at cost; 950.0 and 945.4 million shares
Balance at December 31, 2025 1,660.6 $ 17 $ 9,641 $ 70,282 $ ( 432 ) $ 13 $ ( 1,995 ) ( 950.0 ) $ ( 79,316 ) $ ( 1,791 )
In September 2025, the FASB issued ASU No. 2025-06, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Read more
Targeted Improvements to the Accounting for Internal-Use Software" ("ASU 2025-06"). The pronouncement modernizes the accounting guidance for internal-use software costs by removing the various stages of a software development project to accommodate different software development methods. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years. We are currently in the process of determining the impact that ASU 2025-06 will have on the Company's Consolidated Financial Statements.
Foreign currency Miscellaneous other assets 24 40 Other long-term liabilities ( 12 ) —
No longer in the text (4)
Jill McDonald , 60, is Executive Vice President – President, International Operated Markets, a position she has held since September 2022. Read more
Prior to re-joining the Company, Ms. McDonald served as Chief Executive Officer for Costa Coffee, a beverage company, from December 2019 to July 2022, and as Managing Director, Clothing, Home & Beauty for Marks and Spencer Group plc, a multinational clothing and home products retailer, from October 2017 to July 2019. Ms. McDonald previously worked at the Company from June 2006 to March 2015.
Short-term borrowings and current maturities of long-term debt $ — $ 2,192
Common stock in treasury, at cost; 945.4 and 937.9 million shares
Balance at December 31, 2021 1,660.6 $ 17 $ 8,232 $ 57,535 $ ( 180 ) $ ( 25 ) $ ( 2,369 ) ( 915.8 ) $ ( 67,810 ) $ ( 4,601 )
15 more paragraphs differ; the filings below have the full text.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 24, 2026 ↗ with the 10-K filed Feb 25, 2025 ↗.
24
What to watch going forwardSite analysis
- Comparable sales and guest counts.
- Restaurant openings (≈2,600 planned in 2026).
- Loyalty sales toward the $45B target.
- Value offerings and pricing.
25
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: October 29, 2026 · Financial data fetched: October 29, 2026 13:23 (SEC EDGAR) · Source 10-K filed: February 24, 2026
Built on10-K FY2025 · filed 2026-02-24Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent McDonald's’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.