MCDONALDS CORP (MCD) Factsheet

MCDONALDS CORP (MCD) Stock Analysis

Analysis from 10-Q filed 2026-11-06. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 22.1%. FCF margin 27.0%. Source: 10-Q filed 2026-11-06.

Metric	Value	Context
ROIC	22.1%	Above industry average
FCF Margin	27.0%	Strong cash generation

ROIC 22.1% — Top 25% of sector peers. FCF margin 27.0% — Top 5%.

Explore MCDONALDS CORP: Earnings History | Overview

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_section, get_metric_history, compare_companies, screen_filing_signals.

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

ROIC TTM 22.1%, sector median 6.8%, Top 25%. DuPont: NOPAT margin 37.0% × asset turnover 0.5x. Operating margin 46.9%. Source: 10-Q filed 2026-11-06.

Metric	MCD	Rating	Context
Return on Invested Capital (ROIC)	22.1%	Excellent	Above sector median of 6.8%
Operating Margin	46.9%	Excellent	Efficient operations

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Cash Flow: MCDONALDS CORP generates $7.5B FCF at 27.0% margin, positive NaN/8 quarters

FCF TTM $7.5B. FCF margin 27.0%, Top 5%. OCF/Net income 1.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-11-06.

Metric	MCD	Rating	Context
Free Cash Flow Margin	27.0%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$7.5B	Good	Positive cash generation
OCF/Net Income	1.2x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet Analysis for MCDONALDS CORP

Total debt $39.8B, cash & investments $1.2B. Interest coverage 8.0x. Source: 10-Q filed 2026-11-06.

Metric	MCD	Rating	Context
Net Cash Position	$-38.6B	Warning	Net debt position
Interest Coverage	8.0x	Good	Comfortable debt service

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Valuation: MCDONALDS CORP trades at 21.5x earnings

P/E 21.5x. EV/Sales 8.3x. FCF yield 3.9%. Dividend yield 2.7%. Source: 10-Q filed 2026-11-06.

Metric	MCD	Rating	Context
P/E Ratio	21.5x	Adequate	Premium valuation
EV/Sales	8.3x	Adequate	Growth premium priced in
FCF Yield	3.9%	Adequate	Lower cash yield
Dividend Yield	2.7%	Adequate	Growth focus over income

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Capital Allocation: MCDONALDS CORP returns 3.9% shareholder yield, reducing shares 0.9% YoY

Total shareholder yield 3.9% (div 2.7% + buyback 1.2%). Share count -0.9% YoY. Capital returned $7.6B TTM. Source: 10-Q filed 2026-11-06.

Metric	MCD	Rating	Context
Total Shareholder Yield	3.9%	Good	Dividend + buyback yield combined
Buyback Yield	1.2%	Adequate	Minimal buyback activity
Share Count Change (YoY)	-0.9%	Adequate	Net share reduction (accretive)
Total Capital Returned (TTM)	$7.6B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	22.1%	Top 25%	3.2x above
Free Cash Flow Margin	27.0%	Top 5%	8.3x above
Operating Margin	46.9%	Top 5%	11.1x above
P/E Ratio	21.5x	N/A	-

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Financial Scorecard

Metric	MCD	Rating	Sector Context
Return on Invested Capital (ROIC)	22.1%	Excellent	Top 25% of sector (median: 6.8%)
Free Cash Flow Margin	27.0%	Excellent	Top 5% of sector (median: 3.2%)
P/E Ratio (Price-to-Earnings)	21.5x	Adequate	Fair value
Free Cash Flow Yield	3.9%	Adequate	Moderate yield

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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%. The 8-quarter median ROIC is 22.3% with a improving trend. Sector median 6.8%. Source: 10-Q filed 2026-11-06.

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

MCDONALDS CORP (MCD) has a free cash flow margin of 27.0%, generating $7.5 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-11-06.

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 21.5x, which is above the sector median of N/A. EV/Sales 8.3x. FCF yield 3.9%. Source: 10-Q filed 2026-11-06.

Q: Does MCDONALDS CORP pay a dividend?

MCDONALDS CORP (MCD) currently pays a dividend yield of 2.7%. Total shareholder yield (dividend + buybacks) 3.9%. Source: 10-Q filed 2026-11-06.

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

MCDONALDS CORP (MCD) grew revenue by 5.8% year-over-year. Net income +6.9% YoY. Source: 10-Q filed 2026-11-06.

Q: Is MCDONALDS CORP buying back stock?

MCDONALDS CORP (MCD) repurchased $2.3 billion of stock over the trailing twelve months. This represents a buyback yield of 1.2%. Share count -0.9% YoY. Source: 10-Q filed 2026-11-06.

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 6.8% (Top 25%). FCF margin 27.0%, sector median 3.2% (Top 5%). 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 2026-11-06.

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Data Source: Data sourced from 10-Q filed 2026-11-06. TTM metrics as of Q3 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.