Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Mcdonalds Corp

MCD · NYSE · Consumer

Fundamental quality

ATTRACTIVE

80

out of 100

Mcdonalds Corp is going through a tough financial stretch: it hasn't been profitable over the last twelve months. On fundamental quality it scores 80 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +7%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

McDonald's is the world's largest fast-food chain. It largely operates as a real-estate franchise business: most of its restaurants are run by franchisees who pay it rent and royalties, giving it very stable income.

What will shape its future

  • Consumer spending and its ability to offer perceived 'value' during inflation.
  • Growth from new openings and digitalization (app, ordering, loyalty).
  • Its franchise model, which gives it stability and high margins.

Breakdown by area

I.Growth
60

EPS growth: 13.3% · Revenue growth: 7%

II.Profitability
95

Net margin: 31.6% · ROIC: 26.1%

III.Financial health
74

Net debt/EBITDA: 3.01x · FCF: 25.6%

Source: SEC EDGAR · TTM through 31/03/2026

The score includes +4 for dividend strength: 51 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 99%
Growthbeats 40%
Cash generationbeats 97%
Less debtbeats 22%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Mcdonalds Corp strengths

  • Excellent free-cash-flow generation (FCF margin of 25.6%): profit turns into real cash.
  • Exceptional net margin (31.6%), high even for its sector: the business is clearly profitable.
  • Expanding margins: net margin has risen from 25% to 32% in recent years.
  • Growing earnings per share (13.3% annualized).

Mcdonalds Corp risks and weaknesses

  • No profits over the last twelve months (negative EPS).

Mcdonalds Corp historical evolution

YearRevenueNet incomeFree cash flowNet debt
202019,2084,7314,62433,991
202123,2237,5457,10230,914
202223,1836,1775,48833,320
202325,4948,4697,25534,766
202425,9208,2236,67237,339
202526,8858,5637,18639,924

Between 2020 and 2025, revenue went from $19,208M to $26,885M (+40%) and net income went from $4,731M to $8,563M (+81%). Meanwhile, its margins have widened (from 25% to 32%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+9.4%
  • Net income+6.2%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$7.17

per share, yearly

59.7% of earnings

Payout

51 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Mcdonalds Corp cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Mcdonalds Corp a good company to invest in?

In terms of business quality, Mcdonalds Corp scores 80 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Mcdonalds Corp a profitable company?

Very. Mcdonalds Corp shows a net margin of 31.6%, typical of a highly profitable business.

Does Mcdonalds Corp have a lot of debt?

Yes, its leverage is high: net debt is 3.01 times its EBITDA.

Is Mcdonalds Corp growing?

Its revenue has grown 7% annualized in recent years and its earnings per share 13.3%.

Does Mcdonalds Corp generate cash?

Yes. It converts about 25.6% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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