MCDONALDS CORP (MCD) Stock Analysis

Analysis from 10-Q filed 2025-11-05. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 22.1%. FCF margin 28.0%. D/E -39.0x. Source: 10-Q filed 2025-11-05.

Metric	Value	Context
ROIC	22.1%	Above industry average
FCF Margin	28.0%	Strong cash generation
Debt/Equity	-39.0x	Conservative leverage

ROIC 22.1% — Top 25% of sector peers. FCF margin 28.0% — Top 5%.

Explore MCDONALDS CORP: Earnings History | Filings

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.

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

ROIC TTM 22.1%, sector median 6.9%, Top 25%. DuPont: NOPAT margin 36.3% × asset turnover 0.5x. Operating margin 46.2%. Source: 10-Q filed 2025-11-05.

Metric	MCD	Rating	Context
Return on Invested Capital (ROIC)	22.1%	Excellent	Above sector median of 6.9%
Return on Equity (ROE)	-492.9%	Red flag	Moderate equity returns
Operating Margin	46.2%	Excellent	Efficient operations

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Cash Flow: MCDONALDS CORP generates $7.8B FCF at 28.0% margin, positive NaN/8 quarters

FCF TTM $7.8B. FCF margin 28.0%, Top 5%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-05.

Metric	MCD	Rating	Context
Free Cash Flow Margin	28.0%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$7.8B	Good	Positive cash generation
OCF/Net Income	1.3x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: MCDONALDS CORP at -39.0x leverage

Debt/Equity -39.0x. Total debt $39.9B, cash & investments $822.0M. Source: 10-Q filed 2025-11-05.

Metric	MCD	Rating	Context
Debt to Equity	-39.0x	Excellent	Conservative capital structure
Net Cash Position	$-39.0B	Warning	Net debt position

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Valuation: MCDONALDS CORP trades at 0.0x earnings

P/E 0.0x. EV/Sales 9.1x. FCF yield 4038111.2%. Dividend yield 2718609.8%. Source: 10-Q filed 2025-11-05.

Metric	MCD	Rating	Context
P/E Ratio	0.0x	Adequate	Reasonable valuation
EV/Sales	9.1x	Adequate	Growth premium priced in
FCF Yield	4038111.2%	Excellent	Attractive cash return
Dividend Yield	2718609.8%	Good	Meaningful income

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Capital Allocation: MCDONALDS CORP returns 3928846.5% shareholder yield

Total shareholder yield 3928846.5% (div 2718609.8% + buyback 1210236.6%). Capital returned $7.6B TTM. Source: 10-Q filed 2025-11-05.

Metric	MCD	Rating	Context
Total Shareholder Yield	3928846.5%	Excellent	Dividend + buyback yield combined
Buyback Yield	1210236.6%	Good	Active share repurchases
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	28.0%	Top 5%	11.0x above
Operating Margin	46.2%	Top 5%	10.9x above
Return on Equity (ROE)	-492.9%	Top 5%	-43.5x below
P/E Ratio	0.0x	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: 6.9%)
Free Cash Flow Margin	28.0%	Excellent	Top 5% of sector (median: 2.5%)
Debt to Equity Ratio	-39.0x	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	0.0%	Adequate	Attractively valued
Free Cash Flow Yield	40381.1x	Excellent	High cash return

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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%. Sector median 6.9%. 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 28.0%, generating $7.8 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 9.1x. FCF yield 4038111.2%. Source: 10-Q filed 2025-11-05.

Q: Does MCDONALDS CORP pay a dividend?

MCDONALDS CORP (MCD) currently pays a dividend yield of 2718609.8%. Total shareholder yield (dividend + buybacks) 3928846.5%. Source: 10-Q filed 2025-11-05.

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

MCDONALDS CORP (MCD) grew revenue by 6.3% year-over-year. EPS +5.5% YoY. Source: 10-Q filed 2025-11-05.

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 1210236.6%. 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 6.9% (Top 25%). FCF margin 28.0%, sector median 2.5% (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 2025-11-05.

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Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q2 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.