McDonald's (MCD) Stock Analysis

June 13, 2026

Here is a fundamental analysis of McDonald's (MCD), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

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

Loading price history…

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

Performance at a Glance

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
1-Year Return	-3.77%	1.05%

Risk

Drawdown

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.

Risk at a Glance

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
1-Year Volatility	16.65%	44.02%
Beta	0.40	1.03

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	202.36 billion USD
Currency	USD
Exchange	NYSE
Listing Date	July 5, 1966
Security Type	Common Stock

Valuation

Price-to-Earnings Ratio (TTM)

McDonald's (MCD) trades at P/E ratio of 23.48, 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

23.48

Group distribution

Max: 71.36
Q3: 40.24
MCD: 23.48
Median: 22.08
Q1: 17.04
Min: 3.87

Largest peers

SBUX: 78.66
HLT: 52.74
MAR: 42.19
ABNB: 32.66
MCD: 23.48
BKNG: 21.73
RCL: 17.95

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.

Price-to-Sales Ratio (TTM)

McDonald's (MCD) trades at 7.37 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

MCD

Consumer Services industry group

7.37

Group distribution

MCD: 7.37
Max: 6.59
Q3: 3.16
Median: 1.68
Q1: 0.87
Min: 0.06

Largest peers

HLT: 15.53
MAR: 14.78
MCD: 7.37
ABNB: 6.21
BKNG: 4.62
RCL: 4.29
SBUX: 3.05

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.

Price-to-Book Ratio (MRQ)

McDonald's (MCD) has negative P/B ratio of -157.35, 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

-157.35

Group distribution

Max: 13.42
Q3: 6.34
Median: 2.54
Q1: 1.07
Min: -5.84
MCD: -157.35

Largest peers

ABNB: 10.31
RCL: 8.05
HLT: -13.38
SBUX: -13.87
BKNG: -14.75
MAR: -26.04
MCD: -157.35

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 at a Glance

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
Price-to-Earnings Ratio (TTM)	23.48	22.08
Price-to-Sales Ratio (TTM)	7.37	1.68
Price-to-Book Ratio (MRQ)	-157.35	2.54
Free Cash Flow Yield	2.94%	4.08%

Profitability

Return on Equity (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: 52.89%
Q3: 29.07%
Median: 12.44%
Q1: 3.56%
Min: -26.11%
MCD: --

Largest peers

RCL: 49.58%
ABNB: 32.33%
MCD: --
BKNG: --
SBUX: --
MAR: --
HLT: --

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 Profit 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: 24.47%
Q3: 12.35%
Median: 6.13%
Q1: 1.16%
Min: -15.48%

Largest peers

MAR: 35.97%
MCD: 31.62%
HLT: 30.41%
RCL: 24.36%
BKNG: 22.23%
ABNB: 19.90%
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 Profit 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: 20.10%
Median: 11.37%
Q1: 3.21%
Min: -20.31%

Largest peers

MAR: 59.01%
HLT: 57.36%
MCD: 44.25%
RCL: 26.17%
BKNG: 25.04%
SBUX: 8.42%
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 at a Glance

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
Return on Equity (TTM)	--	12.44%
Return on Assets (TTM)	13.56%	5.05%
Net Profit Margin (TTM)	31.62%	6.13%
Operating Profit Margin (TTM)	44.25%	11.37%
Gross Profit Margin (TTM)	57.35%	44.16%

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: 3.05
Q3: 1.72
MCD: 1.14
Median: 0.99
Q1: 0.69
Min: 0.20

Largest peers

ABNB: 1.44
MCD: 1.14
BKNG: 1.06
SBUX: 0.92
HLT: 0.61
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-to-Equity Ratio (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
MCD: --
BKNG: --
SBUX: --
MAR: --
HLT: --

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 at a Glance

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-to-Equity Ratio (MRQ)	--	1.27
Net Debt / EBITDA	3.61	3.48

Dividends

Dividend Yield (TTM)

McDonald's (MCD) has dividend yield of 2.61%, 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

2.61%

Group distribution

Max: 4.72%
MCD: 2.61%
Q3: 1.94%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

MCD: 2.61%
SBUX: 2.41%
RCL: 1.70%
BKNG: 0.97%
MAR: 0.73%
HLT: 0.17%
ABNB: 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: 86.96%
MCD: 59.85%
Q3: 34.83%
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%
HLT: 9.16%
ABNB: 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.

Dividends at a Glance

McDonald's (MCD) metric values compared with Consumer Services industry-group medians
Metric	Current stock: MCD	Industry group median
Dividend Yield (TTM)	2.61%	0.00%
Dividend Payout Ratio (TTM)	59.85%	0.00%