MCDONALDS CORP (MCD) Stock Analysis

Analysis from 10-Q filed 2025-11-05. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 22.1%. FCF margin 25.6%. D/E -31.2x. Source: 10-Q filed 2025-11-05.

Metric	Value	Context
ROIC	22.1%	Above industry average
FCF Margin	25.6%	Strong cash generation
Debt/Equity	-31.2x	Conservative leverage

ROIC 22.1% — Top 25% of sector peers. FCF margin 25.6% — Top 5%.

Explore MCDONALDS CORP: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for MCD: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: MCDONALDS CORP earns 22.1% ROIC, Top 25% in Consumer Discretionary

ROIC TTM 22.1%, sector median 8.1%, Top 25%. DuPont: NOPAT margin 36.1% × asset turnover 0.5x. Gross margin 90.5%. Operating margin 46.3%. Source: 10-Q filed 2025-11-05.

Metric	MCD	Rating	Context
Return on Invested Capital (ROIC)	22.1%	Excellent	Above sector median of 8.1%
Return on Equity (ROE)	-382.1%	Red flag	Moderate equity returns
Gross Margin	90.5%	Excellent	Strong pricing power
Operating Margin	46.3%	Excellent	Efficient operations

---

Cash Flow: MCDONALDS CORP generates $7.0B FCF at 25.6% margin, positive NaN/8 quarters

FCF TTM $7.0B. FCF margin 25.6%, Top 5%. OCF/Net income 1.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-05.

Metric	MCD	Rating	Context
Free Cash Flow Margin	25.6%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$7.0B	Good	Positive cash generation
OCF/Net Income	1.2x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: MCDONALDS CORP at -31.2x leverage

Debt/Equity -31.2x. Total debt $40.1B, cash & investments $1.2B. Source: 10-Q filed 2025-11-05.

Metric	MCD	Rating	Context
Debt to Equity	-31.2x	Excellent	Conservative capital structure
Net Cash Position	$-38.9B	Warning	Net debt position

---

Valuation: MCDONALDS CORP trades at 0.0x earnings

P/E 0.0x. EV/Sales 1.4x. FCF yield 3202688.6%. Dividend yield 2353673.5%. Source: 10-Q filed 2025-11-05.

Metric	MCD	Rating	Context
P/E Ratio	0.0x	Adequate	Reasonable valuation
EV/Sales	1.4x	Excellent	Attractive revenue multiple
FCF Yield	3202688.6%	Excellent	Attractive cash return
Dividend Yield	2353673.5%	Good	Meaningful income

---

Capital Allocation: MCDONALDS CORP returns 3252282.7% shareholder yield

Total shareholder yield 3252282.7% (div 2353673.5% + buyback 898609.2%). Capital returned $7.1B TTM. Source: 10-Q filed 2025-11-05.

Metric	MCD	Rating	Context
Total Shareholder Yield	3252282.7%	Excellent	Dividend + buyback yield combined
Buyback Yield	898609.2%	Good	Active share repurchases
Total Capital Returned (TTM)	$7.1B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	22.1%	Top 25%	2.7x above
Free Cash Flow Margin	25.6%	Top 5%	11.6x above
Gross Margin	90.5%	Top 5%	2.3x above
Operating Margin	46.3%	Top 5%	11.0x above
Return on Equity (ROE)	-382.1%	Top 5%	-37.1x below
P/E Ratio	0.0x	N/A	-

---

Financial Scorecard

Metric	MCD	Rating	Sector Context
Return on Invested Capital (ROIC)	22.1%	Excellent	Top 25% of sector (median: 8.1%)
Free Cash Flow Margin	25.6%	Excellent	Top 5% of sector (median: 2.2%)
Gross Margin	90.5%	Excellent	Top 5% of sector (median: 39.1%)
Debt to Equity Ratio	-31.2x	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	0.0%	Adequate	Attractively valued
Free Cash Flow Yield	32026.9x	Excellent	High cash return

---

Frequently Asked Questions

Q: What is MCDONALDS CORP's Return on Invested Capital (ROIC)?

MCDONALDS CORP (MCD) has a trailing twelve-month Return on Invested Capital (ROIC) of 22.1%. Sector median 8.1%. Source: 10-Q filed 2025-11-05.

Q: What is MCDONALDS CORP's Free Cash Flow Margin?

MCDONALDS CORP (MCD) has a free cash flow margin of 25.6%, generating $7.0 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-05.

Q: What is MCDONALDS CORP's P/E ratio and how does it compare to peers?

MCDONALDS CORP (MCD) trades at a P/E ratio of 0.0x, which is above the sector median of N/A. EV/Sales 1.4x. FCF yield 3202688.6%. Source: 10-Q filed 2025-11-05.

Q: Does MCDONALDS CORP pay a dividend?

MCDONALDS CORP (MCD) currently pays a dividend yield of 2353673.5%. Total shareholder yield (dividend + buybacks) 3252282.7%. Source: 10-Q filed 2025-11-05.

Q: What is MCDONALDS CORP's revenue and earnings growth?

MCDONALDS CORP (MCD) grew revenue by 6.8% year-over-year. EPS +7.0% YoY. Source: 10-Q filed 2025-11-05.

Q: Is MCDONALDS CORP buying back stock?

MCDONALDS CORP (MCD) repurchased $2.0 billion of stock over the trailing twelve months. This represents a buyback yield of 898609.2%. Source: 10-Q filed 2025-11-05.

Q: How does MCDONALDS CORP compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, MCDONALDS CORP (MCD) shows: ROIC 22.1%, sector median 8.1% (Top 25%). FCF margin 25.6%, sector median 2.2% (Top 5%). Gross margin 90.5%, 51.4pp above sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with MCDONALDS CORP?

No quantitative warning flags fired for MCDONALDS CORP (MCD) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-11-05.

---

Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.