MCDONALDS CORP
$271.97
−1.66 (−0.61%) · delayed · Nov 13, 2026
Five-year price
52w $229.20 to $341.75
- Market cap
- $192.0B
- Enterprise value
- $231.9B
- P/E
- 22.8×
- 23.4× on 3y avg EPS
- EV / EBIT
- 18.7×
- FCF yield
- 3.7%
- ROIC
- 25.7%
- Debt / equity
- —
- Piotroski F
- 5/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
100
- ●ROIC > 12% (5y avg)5y avg ROIC 28.4%
- –ROE > 15% (5y avg)5y avg ROE n/a
- ●Stable operating marginsMargin volatility 2.0% (σ, 5y)
- ●Earnings convert to cashFCF / net income 87% (5y avg)
- ●Growing revenueRevenue CAGR 5y 7.0%
- ●Shrinking share countDiluted shares -100.0% over 5y
Value
0
- ○P/E below 15P/E 22.8
- ○EV/EBIT below 12EV/EBIT 18.7
- ○FCF yield above 6%FCF yield 3.7%
- –Price below Graham NumberGraham Number n/a
- –P/B below 3P/B n/a
Safety
0
- –Debt / equity below 0.5D/E n/a
- ○Debt payable in < 4 yrs of earningsNet debt $39.9B
- ○Interest coverage > 8xCoverage 7.8x
- ○Current ratio > 1.5Current ratio 0.95
- ○Piotroski F-score ≥ 6F-score 5/9
Graham Defensive
67
- ●Adequate size (revenue > $2B)Revenue $26.9B
- ○Strong condition (current ratio ≥ 2)Current ratio 0.95
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 80%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 23.4
- –P/E × P/B ≤ 22.5Product n/a
Valuation lab
What do you have to believe?
At $271.97, the market is pricing in about 12.0% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $39.9B · 706M shares · 5y revenue CAGR 7.0%
Intrinsic value
$168.93
Price
$271.97
Premium paid
61%
What the price implies
The market is paying for 12.0% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
59% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 24,622 | 22,820 | 21,258 | 21,364 | 19,208 | 23,223 | 23,183 | 25,494 | 25,920 | 26,885 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | 7,745 | 9,553 | 8,823 | 9,070 | 7,324 | 10,356 | 9,371 | 11,647 | 11,712 | 12,393 |
| Operating margin | 31.5% | 41.9% | 41.5% | 42.5% | 38.1% | 44.6% | 40.4% | 45.7% | 45.2% | 46.1% |
| Pre-tax income | — | — | — | — | — | — | — | — | — | — |
| Income tax | 2,180 | 3,381 | 1,892 | 1,993 | 1,410 | 1,583 | 1,648 | 2,053 | 2,121 | 2,334 |
| Net income | 4,687 | 5,192 | 5,924 | 6,025 | 4,731 | 7,545 | 6,177 | 8,469 | 8,223 | 8,563 |
| EPS (diluted) | 5.44 | 6.37 | 7.54 | 7.88 | 6.31 | 10.04 | 8.33 | 11.56 | 11.39 | 11.95 |
| Diluted shares | 861 | 816 | 786 | 765 | 750 | 0 | 0 | 0 | 0 | 0 |
Who owns it