McDonald's (MCD) Stock Analysis

July 23, 2026

This is a peer-relative look at McDonald's (MCD): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for McDonald's (MCD)
Profile Item	MCD
Name	McDonald's Corporation
Country/Region	United States
GICS Sector	Consumer Discretionary
GICS Industry Group	Consumer Services
GICS Industry	Hotels, Restaurants & Leisure
GICS Sub-Industry	Restaurants
Market Capitalization	187.51 billion USD
Currency	USD
Exchange	NYSE
Listing Date	July 5, 1966
Security Type	Common Stock

Price Performance

Cumulative Growth

MCD

GSPC

McDonald's (MCD) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for McDonald's (MCD) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for McDonald's (MCD) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
Total Return (1Y)	-8.60%	-3.13%
Total Return (3Y, Annualized)	-1.42%	3.13%
Total Return (5Y, Annualized)	4.64%	1.35%

Risk Profile

Drawdown History

MCD

GSPC

McDonald's (MCD) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for McDonald's (MCD) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
Volatility (1Y, Annualized)	18.07%	44.67%
Beta (5Y)	0.41	1.04
Max Drawdown (5Y)	-21.66%	-60.13%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. MCD is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
Sharpe Ratio (1Y)	-0.70	-0.18
Sortino Ratio (1Y)	-0.98	-0.26

Profitability

ROE (TTM)

No usable ROE is available for McDonald's (MCD) this period, so the shareholder-equity return read is skipped.

MCD

Consumer Services industry group

Group distribution

Max: 53.72%
Q3: 29.07%
Median: 13.03%
Q1: 3.56%
Min: -26.11%
MCD: --

Largest peers

RCL: 49.58%
ABNB: 32.33%
DASH: 9.92%
MCD: --
BKNG: --
SBUX: --
MAR: --

McDonald's (MCD) doesn’t report ROE this period; the box shows the Consumer Services group’s distribution and the dots its largest members.

Net Margin (TTM)

McDonald's (MCD) keeps 31.62% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

MCD

Consumer Services industry group

31.62%

Group distribution

MCD: 31.62%
Max: 24.36%
Q3: 12.28%
Median: 6.05%
Q1: 1.13%
Min: -15.48%

Largest peers

MAR: 35.97%
MCD: 31.62%
RCL: 24.36%
BKNG: 22.23%
ABNB: 19.90%
DASH: 6.29%
SBUX: 3.89%

Where McDonald's (MCD) stands on net margin within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

McDonald's (MCD) turns 44.25% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

MCD

Consumer Services industry group

44.25%

Group distribution

MCD: 44.25%
Max: 44.25%
Q3: 20.99%
Median: 11.48%
Q1: 3.39%
Min: -20.31%

Largest peers

MAR: 59.01%
MCD: 44.25%
RCL: 26.17%
BKNG: 25.04%
SBUX: 8.42%
DASH: 5.25%
ABNB: 3.21%

Where McDonald's (MCD) stands on operating margin within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
ROE (TTM)	--	13.03%
ROA (TTM)	13.56%	5.12%
Net Margin (TTM)	31.62%	6.05%
Operating Margin (TTM)	44.25%	11.48%
Gross Margin (TTM)	57.35%	44.21%

Growth

Revenue Growth

McDonald's (MCD) grew revenue 3.72%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

McDonald's (MCD): Revenue Growth across different time periods, set against Consumer Services industry-group medians.

EPS Growth

McDonald's (MCD) grew earnings per share 4.92%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

McDonald's (MCD): EPS Growth across different time periods, set against Consumer Services industry-group medians.

Growth Metrics

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
Revenue Growth (YoY)	3.72%	6.60%
Revenue Growth (3Y CAGR)	5.06%	10.36%
EPS Growth (YoY)	4.92%	8.60%
EPS Growth (3Y CAGR)	12.78%	12.09%

Financial Strength

Current Ratio (MRQ)

McDonald's (MCD) has current ratio of 1.14, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

MCD

Consumer Services industry group

1.14

Group distribution

Max: 3.42
Q3: 1.79
MCD: 1.14
Median: 0.99
Q1: 0.69
Min: 0.20

Largest peers

ABNB: 1.44
DASH: 1.43
MCD: 1.14
BKNG: 1.06
SBUX: 0.92
MAR: 0.46
RCL: 0.20

Where McDonald's (MCD) stands on current ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

No usable debt-to-equity ratio is available for McDonald's (MCD) this period, so the balance-sheet leverage read is skipped.

MCD

Consumer Services industry group

Group distribution

Max: 7.23
Q3: 3.20
Median: 1.27
Q1: 0.35
Min: 0.01
MCD: --

Largest peers

RCL: 2.17
ABNB: 0.33
DASH: 0.32
MCD: --
BKNG: --
SBUX: --
MAR: --

McDonald's (MCD) doesn’t report debt-to-equity ratio this period; the box shows the Consumer Services group’s distribution and the dots its largest members.

Financial Strength Metrics

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
Current Ratio (MRQ)	1.14	0.99
Debt / Equity (MRQ)	--	1.27
Net Debt / EBITDA	3.61	3.46

Dividends

Dividend Yield (TTM)

McDonald's (MCD) has dividend yield of 2.71%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

MCD

Consumer Services industry group

2.71%

Group distribution

Max: 3.74%
MCD: 2.71%
Q3: 1.53%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

MCD: 2.71%
SBUX: 2.36%
RCL: 1.49%
BKNG: 0.88%
MAR: 0.73%
ABNB: 0.00%
DASH: 0.00%

Where McDonald's (MCD) stands on dividend yield within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

McDonald's (MCD) has payout ratio of 59.85%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

MCD

Consumer Services industry group

59.85%

Group distribution

Max: 81.13%
MCD: 59.85%
Q3: 33.89%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

SBUX: 187.79%
MCD: 59.85%
MAR: 28.06%
RCL: 25.93%
BKNG: 20.73%
ABNB: 0.00%
DASH: 0.00%

Where McDonald's (MCD) stands on payout ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
Dividend Yield (TTM)	2.71%	0.00%
Dividend Payout Ratio (TTM)	59.85%	0.00%

Valuation

P/E Ratio (TTM)

McDonald's (MCD) trades at P/E ratio of 22.07, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

MCD

Consumer Services industry group

22.07

Group distribution

Max: 63.43
Q3: 39.84
Median: 23.69
MCD: 22.07
Q1: 16.85
Min: 3.90

Largest peers

DASH: 89.12
SBUX: 79.73
MAR: 38.47
ABNB: 35.85
BKNG: 23.64
MCD: 22.07
RCL: 17.45

Where McDonald's (MCD) stands on P/E ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

McDonald's (MCD) trades at 6.83 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

MCD

Consumer Services industry group

6.83

Group distribution

MCD: 6.83
Max: 6.83
Q3: 3.26
Median: 1.68
Q1: 0.82
Min: 0.06

Largest peers

MAR: 13.50
MCD: 6.83
ABNB: 6.76
DASH: 5.57
BKNG: 5.02
RCL: 4.20
SBUX: 3.09

Where McDonald's (MCD) stands on P/S ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

McDonald's (MCD) has negative P/B ratio of -145.81, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.

MCD

Consumer Services industry group

-145.81

Group distribution

Max: 12.57
Q3: 5.66
Median: 2.46
Q1: 1.04
Min: -5.57
MCD: -145.81

Largest peers

ABNB: 11.23
DASH: 8.04
RCL: 7.87
SBUX: -14.06
BKNG: -16.04
MAR: -23.79
MCD: -145.81

Where McDonald's (MCD) stands on P/B ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
P/E Ratio (TTM)	22.07	23.69
P/S Ratio (TTM)	6.83	1.68
P/B Ratio (MRQ)	-145.81	2.46
Free Cash Flow Yield (TTM)	3.17%	4.28%