MCD
McDonald's
$270.10
▼ 3.1%Updated Today 6:01 PM ET
▼ Down 3.8% over the last 12 months
Market Cap
$197.95B
P/E
22.83x
Forward P/E (est.)
21.34x
ROE
95.1%
Revenue Growth
6.8%
EPS Growth
7.0%
Profit Margin
31.6%
FCF Yield
4.9%
Debt / Equity
3.4x
ROIC
25.0%
Interest Coverage
7.83x
Current Ratio
1.14x
Dividend Yield
2.6%
Implied Growth (rev. DCF)
5.2%
Rating Score
64/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what MCD's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. MCD trades near $270.10, below its 50-day average ($287.10) and 200-day average ($305.29). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 49 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. MCD's is $5.36 (~2.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month MCD found buyers near $271.85 (support) and sellers near $289.29 (resistance); its 52-week range is $271.85–$341.75. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.8× the 20-day average — heavier than usual, which adds conviction to the move. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
McDonald's (MCD) is a large-cap company in the Restaurants industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $197.95B.
In its latest reported year it generated about $26.89B in revenue and $8.56B in net profit.
Our model rates MCD Favorable (64/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
3.7%
Revenue moved from $23.22B in 2021 to $26.89B in 2025, a 3.7% compound annual growth rate. The most recent year grew a steady 6.8% year over year. Slower, mature growth is common for established businesses.
Gross Margin
57.4%
Operating Margin
46.1%
Net Margin
31.9%
ROE
95.1%
McDonald's keeps about 31.6% of each sales dollar as net profit, with a 57.4% gross margin and 46.1% operating margin. Return on equity is 95.1% and return on invested capital about 25.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$39.97B
Net Debt
$38.80B
Net Debt / EBITDA
3.13x
Debt / Equity
3.4x
Leverage: debt-to-equity is 3.4x, and operating profit covers interest about 7.8x, with a current ratio of 1.1x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $39.97B of total debt against $1.17B of cash.
Operating CF
$10.55B
Free Cash Flow
$7.19B
FCF Margin
26.7%
In the latest year McDonald's produced about $10.55B of operating cash flow and $7.19B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.9% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
22.83x
P/S
7.61x
P/B
14.81x
EV / EBITDA
18.94x
MCD trades at 22.8x trailing earnings (about 21.3x on estimated forward earnings), 7.6x sales, and 14.8x book value. Reverse-engineering today's price implies the market expects roughly 5.2% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How MCD stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.
In the Consumer Discretionary sector (48 S&P 500 companies), MCD ranks #12 of 48 by our overall rating. It trades at roughly in line versus the sector on earnings (22.8x P/E vs. 23.7x median) with a higher return on equity (95.1% vs. 39.2%) and faster revenue growth (6.8% vs. 6.2%).
P/E vs sector
22.8x
median 23.7x
ROE vs sector
95.1%
median 39.2%
Growth vs sector
6.8%
median 6.2%
Sector rank
#12
of 48 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 48 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$237.76 – $390.61
vs. $270.10 today · expected CAGR -3% – 8%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $28.77B | $30.78B | $32.94B | $35.24B | $37.71B |
| Net income | $9.21B | $9.85B | $10.54B | $11.28B | $12.07B |
| EPS | $12.96 | $13.86 | $14.83 | $15.87 | $16.98 |
| Share price (low) | $181.39 | $194.08 | $207.67 | $222.21 | $237.76 |
| Share price (high) | $297.99 | $318.85 | $341.17 | $365.05 | $390.61 |
| CAGR (low–high) | -33% / 10% | -15% / 9% | -8% / 8% | -5% / 8% | -3% / 8% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for MCD:
- High net margins (31.6%) point to pricing power or efficiency.
- Strong return on equity (95.1%) shows capital is put to work well.
- Healthy free-cash-flow yield (~4.9%) funds buybacks and dividends.
- Pays a 2.6% dividend on top of any price gains.
- Our model's overall read is Favorable (64/100).
The case against MCD:
- Elevated leverage (debt/equity 3.4x) adds financial risk.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 3.4x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: McDonald's is a large-cap consumer discretionary business growing at a mature pace, with solid profitability, and a heavier debt load to watch. It trades at 22.8x earnings, which our model scores Favorable (64/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.