Mcdonalds Corp

Consumer Discretionary
Restaurants
www.investor.mcdonalds.com

Earnings Score
Safety Score

Market Cap $225.16B
Debt $38.98B
Cash $1.24B
EV $262.90B
FCF $6.71B

Earnings

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Sales & Net Margins

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Earnings	$8.16B
EBIT	$11.62B
ROA	21%
FCF	$6.71B
Equity	-$3.45B
Growth Stability	83%
PE	27.59
PEG	2.22
PB	-65.19
P/FCF	33.58
P/S	8.76
Price/Cash	0.01
Debt/Equity	-11.29
Debt/FCF	5.81
Net Margins	31%
Op. Margins	45%
Earnings CAGR	7%
Sales Growth YoY	-3%
Sales Growth QoQ	-7%
Sales CAGR	1%
FCF CAGR	8%
Equity CAGR	-0%
Earnings Stability	0.73
Earnings Growth YoY	-3%

Earnings Growth QoQ	-7%
Earnings CAGR 5Y	12%
Sales CAGR 5Y	7%
FCF CAGR 5Y	9%
Earnings CAGR 3Y	5%
Sales CAGR 3Y	5%
FCF CAGR 3Y	7%
Market Cap	$225.16B
Revenue	$25.71B
Dividend Yield	2%
Payout Ratio	60%
Assets	$56.33B
Total Debt	$38.98B
Cash	$1.24B
Shares Outstanding	714.9M
EV	262.9B
Earnings Score	85%
Safety Score	60%
Working Capital	727M
Current Ratio	1.18
Shares Growth 3y	-1%
Equity Growth QoQ	-9%
Equity Growth YoY	-29%

Assets & ROA

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Stockholders Equity & ROE

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McDonald's is the largest restaurant owner-operator in the world, with 2021 system sales of $112 billion across more than 40,000 stores and 119 countries. McDonald's pioneered the franchise model, building its impressive footprint through partnerships with independent restaurant franchisees around the world. The firm earns nearly 60% of its revenue from franchise royalty fees and lease payments, with the remainder coming from company-operated stores across its three core segments: the United States, internationally operated markets, and international developmental/licensed markets. McDonald's owns 55% of the real estate and 80% of the buildings in its franchise system, offering it substantial leverage in maintaining quality standards and consistency.

SEC Filings

Direct access to Mcdonalds Corp (MCD) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Mcdonalds Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Mcdonalds Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 7%

Stability 73%

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Mcdonalds Corp Discounted Cash Flow

Fully customizable DCF calculator online for Mcdonalds Corp.

Years

Calculation mode

= $116B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$6.7B	$7.2B	$7.8B	$8.4B	$9.1B	$9.8B	$11B	$11B	$12B	$13B	$14B	$144B
DCF		$6.6B	$6.5B	$6.3B	$6.2B	$6.1B	$6B	$5.9B	$5.8B	$5.7B	$5.6B	$56B
Value	$116B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	18%	19%	23%	28%	29%	25%	32%	27%	33%	32%	31%
ROA	-	25%	28%	27%	19%	14%	19%	19%	21%	21%	21%
ROE	-	-213%	-159%	-95%	-73%	-60%	-164%	-103%	-180%	-217%	-

Good Net Margins (31.36%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	6.15	7.99	7.36	5.98	8.58	5.04	6.59	5.76	5.79	5.81
Debt over Equity	3.4	-11.83	-9.04	-4.97	-4.17	-5.07	-7.77	-6.02	-8.87	-10.17	-11.29
Growth Stability	-	-	-	100%	100%	83%	100%	100%	100%	100%	83%

Bad Debt/FCF ratio (5.81)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (-11.29)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (83%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	-3%	-7%	-8%	0%	-9%	21%	-0%	10%	2%	7%
Earnings YoY growth	-	3%	11%	14%	2%	-21%	60%	-18%	37%	-3%	12%
Equity YoY growth	-	-131%	48%	92%	31%	-5%	-41%	30%	-22%	-19%	-
FCF YoY growth	-	-10%	-13%	14%	36%	-19%	54%	-23%	32%	-8%	9%