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McDonald's (MCD) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NYSE•Consumer Cyclical•Restaurants
C
AverageMetricSide Score: 58/100
ProfitabilityProfit20/30
GrowthGrowth15/25
Balance SheetBalance8/25
Cash QualityCash15/20
Price & Volume
Market Cap $199.44B

McDonald's Corporation owns, operates, and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, frozen desserts, sundaes, soft serve cones, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates franchised restaurants under various structures, including conventional franchise, developmental license, or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago, Illinois.

Moat Signals

Competitive analysis based on 68 quarters of fundamental data

Pricing Power

Strong Moat

Operating margins are expanding at ~45.7%, suggesting durable pricing power and cost discipline.

Competitive Advantage

Moderate Moat

Limited ROE data for a reliable assessment.

Cash Generation

Strong Moat

Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.

Demand Durability

Moderate Moat

Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.

Risk Signals

Data-driven red flags and warnings across 68 quarters

Low Risk

Margin Pressure

Healthy

Margins are stable or improving at ~46.3% — no sign of cost or pricing stress.

Earnings Quality

Healthy

FCF covers net income by 0.8x on average — earnings are well-supported by cash generation.

Leverage Risk

Healthy

Limited debt-to-equity data available.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Share count is stable — no significant dilution or buyback activity.

Metrics at a Glance

as of March 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$27.45B
6.8%
Q. Revenue
$6.52B
TTM EBITDA
$14.30B
8.9%
TTM Op. Income
$12.70B
9.2%
Q. Op. Income
$2.95B
TTM Net Income
$8.68B
6.3%
Q. Net Income
$1.98B
EPS
$2.79
Shares Out.
$710.70M
0.6%
$27.45B in TTM revenue grew 6.8% YoY, reaching $6.52B last quarter. TTM EBITDA of $14.30B and TTM operating income of $12.70B shows growth is flowing through. Net income of $8.68B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin
45.3%
Op. Margin
45.3%
1.9%
Net Margin
30.4%
3.0%
Op. margin of 45.3% is up 0.9% YoY — cost efficiency is improving. Net margin at 30.4%.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
23.0x
P/S Ratio
7.3x
P/B Ratio
N/A
At 23.0x P/E, the stock trades in line with market averages — fairly valued. P/S of 7.3x and P/B of 0.0x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$60.04B
Cash
$1.17B
Long-Term Debt
$40.10B
Book Value
$-1.29B
D/E Ratio
N/A
Debt/EBITDA
13.6

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$2.41B
Free Cash Flow
$1.73B
7.8%
FCF Margin
6.3%
FCF / Net Income
0.9
FCF of $1.73B on $2.41B in operating cash flow. The FCF / Net Income ratio of 0.2x indicates partial cash conversion — earnings quality needs attention.

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