Consumer Discretionary · Restaurants · US stock · price as of 16 Oct 2026
Key indicators
Price
$242.97
52-week range
$229.20 – $335.18
Market cap
$172.8B
P/E (trailing)
14.8×
EV / EBITDA
16.0×
Free-cash-flow yield
4.5%
Dividend yield
3.1%
Revenue (last 12 months)
$27.7B
Revenue growth (3y a year)
5.1%
Operating margin
46.2%
Return on invested capital
26.6%
Net debt / EBITDA
2.9×
Fair value
Blended fair value$298.28 range $273 – $331
Versus priceFair+23% to fair value
Peer multiples
$248.98
Fundamentals-adjusted multiple
$260.44
10-year DCF (market-scaled)
$385.42
Earnings power value (floor, not blended)
$112.24
Model uncertainty
Medium
X-Ray Score
53/ 100 · High confidence · ahead of 62% of sector peers
Valuation49
Growth45
Profitability63
Financial health48
Dividends63
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
McDonald's franchises and operates fast food restaurants around the world, selling burgers, chicken items, breakfast food and drinks. Most of its restaurants are run by independent franchisees, who pay the company rent, royalties and fees based on sales, while the company also keeps a smaller number of restaurants under its own management. Because it owns or leases much of the land and buildings, property income forms a major part of its earnings.
Revenue over the last twelve months came to $27.7 billion, and sales grew by 5.1% a year on average across the past three years. Operating margin is 46.2% and return on invested capital is 27%. Net debt to EBITDA is 2.9 times. It pays a dividend with a yield of 3.1%.
StocksXray gives Mcdonalds Corp an X-Ray Score of 53 out of 100 (high confidence), ahead of 62% of the S&P 500 stocks in its sector. Its strongest lens is profitability (63) and its weakest is growth (45).
Our fair value blend is $298.28 (range $272.52 to $330.59). At $242.97 the stock trades 19% below that blend, so the label is "Fair" with medium model uncertainty. Fair value is a range, not a price target.
XStocksXray
Mcdonalds Corp (MCD)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$239.92
$241.14
$277.46
$277.84
$299.75
$242.97
Market cap
$180.4B
$178.8B
$203.2B
$200.6B
$214.7B
$172.8B
P/E
23.9×
28.9×
24.0×
24.4×
25.1×
14.8×
EV / revenue
9.1×
9.1×
9.4×
9.2×
9.5×
7.6×
EV / EBITDA
19.8×
21.8×
20.0×
19.6×
19.9×
16.0×
Price / free cash flow
25.4×
32.6×
28.0×
30.1×
29.9×
22.3×
Free-cash-flow yield
3.9%
3.1%
3.6%
3.3%
3.3%
4.5%
Price / book
–
–
–
–
–
–
Dividend yield
2.19%
2.35%
2.25%
2.44%
2.39%
3.06%
Fundamentals checklist ● 3 Good · ● 7 Average · ● 5 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−4.3%Bad
Free-cash-flow yield4.5%Average
Risk models
Altman Z score5.4×Good
Piotroski F-Score6 of 9Average
Growth
EPS growth (3y)12.8%Good
Free-cash-flow growth (3y)9.4%Average
Revenue growth (3y)5.1%Bad
Growth consistency70%Bad
Balance sheet
Current ratio1.1×Average
Net debt / EBITDA2.9×Bad
Interest cover7.9×Bad
Valuation
Fair value vs price1.2×Average
EBIT / EV yield6.0%Average
Profitability
Return on invested capital26.6%Average
Operating margin46.2%Good
Red flags
Negative equity — Book equity is negative
XStocksXray
Mcdonalds Corp (MCD)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
23,223
23,183
25,494
25,920
26,885
27,703
Gross profit
–
–
–
–
–
–
Operating income
10,356
9,371
11,647
11,712
12,393
12,804
Net income
7,545
6,177
8,469
8,223
8,563
8,787
Diluted EPS ($)
10.04
8.33
11.56
11.39
11.95
16.42
Free cash flow
7,102
5,488
7,255
6,672
7,186
7,761
Gross margin
–
–
–
–
–
–
Operating margin
44.6%
40.4%
45.7%
45.2%
46.1%
46.2%
Net margin
32.5%
26.6%
33.2%
31.7%
31.9%
31.7%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
53,854
50,436
56,147
55,182
59,515
59,920
Cash
4,709
2,584
4,579
1,085
774
822
Total debt
35,623
35,904
41,885
39,214
41,496
39,863
Equity
-4,601
-6,003
-4,707
-3,797
-1,791
-1,023
Dividend per share ($)
5.25
5.66
6.23
6.78
7.17
7.35
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.