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.
It is a $167B consumer company. Revenue grew 6.3% over the last year, it keeps 32¢ of every dollar of sales as profit, and its net debt equals ~5.1 years of free cash flow. It trades at 18.9× earnings — near the lowest of its own history.
- Website
- mcdonalds.com
- Location
- Chicago, IL
- Employees
- 150 000
- Sector
- Consumer Cyclical
- Founded
- 1940
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability, quality and moat; Growth and Health lag behind.
Valuation61
- P/E vs own history1th pct · 25/25
- FCF yield4.6% · 12/25
- P/S6.0x · 12/25
- EV/EBITDA15.5x · 12/25
Growth37
- Revenue CAGR3.7% · 6/25
- Net income CAGR3.2% · 6/25
- EPS CAGR ~5Y13.7% · 20/25
- Fwd implied growth3.3% · 5/25
Profitability100
- ROIC26.2% · 25/25
- ROE95.1% · 25/25
- Net margin31.7% · 25/25
- Operating margin46.2% · 25/25
Health30
- Altman Zn/a · 0/25
- Current ratio1.08 · 12/25
- Interest coverage9.1x · 18/25
- Net cash / debtD/A 66% · 0/25
Quality87
- Piotroski F6/9 · 15/25
- Beneish M-2.72 · 25/25
- FCF conversion88% · 22/25
- Margin stabilityσ 4.9% · 25/25
Moat95
- ROIC >12% years10/10 yrs · 25/25
- Median gross margin42.5% · 20/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 19.0% · 25/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2025FinancialBest year on record$8.56B net income
- Sep 4, 2024ProductIn partnership with the Central Food Technological Research Institute in India, McDonald's has introduced…
- 2021MilestoneMcDonald's established its first UK net zero carbon restaurant in Market Drayton in Shropshire in December 2021
- 2020AcquisitionMcDonald's sold meat pies after local affiliate McDonald's New Zealand (known locally as…
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialRevenue already above $10B$24.6B in first reported year
- FY2016FinancialPositive free cash flow every year since10-year streak
- 1979ProductHappy Mealkids + toys — marketing genius in a box
- 1967ProductBig Maca franchisee's invention that became the icon
- Apr 21, 1965IPOIPOwent public at $22.50 per share
- 1963ProductClown mascot Ronald McDonald was introduced in 1963 to market the chain to children
- 1961AcquisitionHe purchased the brothers' ownership stake in the company in 1961 and oversaw its domestic and international expansion
- Apr 15, 1955MilestoneRay Kroc's first franchiseDes Plaines, Illinois — the corporation is born
- 1953ProductThe Golden Arches design was introduced in 1953
- 1948ProductThe McDonald brothers introduced the "Speedee Service System" in 1948, putting into expanded use the principles of…
- May 15, 1940FoundedMcDonald brothers' barbecue standSan Bernardino drive-in with the "Speedee" system
- May 15, 1940MilestoneSiblings Richard and Maurice McDonald, with the goal of making $1 million before they turned 50, opened the first…
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (57.4%)
- Strongly profitable — 31.7% net margin
- Strong cash conversion — FCF is 28.0% of revenue
- Interest covered 9.1× by operating earnings
- High returns on invested capital (ROIC 26.2%)
Watch-outs
- Net debt equals ~5.1 years of free cash flow
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+6.3% YoY
- Profitable — makes more than it spends$8.79B TTM
- Profit growing — earnings are higher than last year+12.8% YoY
- Generates cash — cash left after running and investing$7.76B TTM
- Debt under control — could handle its obligations~5.1y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$167B market cap
- Not printing shares — share count not ballooning — you keep your slice-4.5% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distresshealth score 30/100
- Pays a dividend — returns cash to shareholdersyield 3.14%
- Valuation not extreme — price not wildly above earningsP/E 18.9
Peer comparisonMcDonald's Corporation vs 6 largest consumer cyclical peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| MCD this company | $166.9B | 18.9 | +6.3% | 31.7% | Strained |
| AMZN Amazon.Com Inc | $2.8T | 20.9 | +15.8% | 17.4% | Mixed |
| TSLA Tesla, Inc. | $1.5T | 397.1 | +11.8% | 3.7% | Strong |
| NFLX NetFlix Inc | $292.8B | 21.4 | +16.0% | 28.2% | Solid |
| HD Home Depot, Inc. | $290.4B | 20.4 | -16.0% | 8.7% | Solid |
| DIS The Walt Disney Company | $186.5B | 21.7 | +4.6% | 8.7% | Solid |
| TJX TJX Companies, Inc. (The) | $153.0B | 25.2 | +7.7% | 9.7% | Mixed |
Head-to-head: MCD vs AMZN · MCD vs TSLA · MCD vs NFLX
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/MCD
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of MCD on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $235.89 · market cap $167B.