McDonald's Corporation (MCD) AI Stock Analysis

McDonald's Corporation operates and franchises restaurants worldwide, offering a menu centered on hamburgers, cheeseburgers, chicken sandwiches, nuggets, wraps, fries, salads, desserts, shakes, and beverages. It also provides breakfast items such as biscuit and bagel sandwiches, breakfast burritos, and hotcakes. Founded in 1940 and headquartered in Chicago, Illinois, the company managed 40,031 restaurants across various countries as of December 31, 2021. McDonald's expands primarily through franchise operations, focusing on menu innovation and operational efficiency across its international and domestic locations.

McDonald's grew revenue from $23.22B in FY2021 to $26.89B in FY2025, delivering a 5-year revenue CAGR of 7.0% from FY2020 to FY2025. Annual net income increased from $7.55B in FY2021 to $8.56B in FY2025, with EPS climbing from $9.28 to $12.20 over the same span. Profitability remained strong, as operating margin reached 46.1% in FY2025 and 46.5% over the trailing twelve months. In the latest quarter ended June 30, 2026, quarterly revenue grew 3.7% year-over-year while quarterly earnings expanded 5.7% year-over-year. TTM revenue reached $27.70B, supported by a profit margin of 31.7% and TTM EPS of $12.31.

As of June 30, 2026, McDonald's held $822.0M in cash and short-term investments against $54.59B in total debt, resulting in net debt of $53.77B. Shareholders' equity stood at -$1.02B alongside total assets of $59.92B, with a current ratio of 1.08. In FY2025, the business generated $10.55B in operating cash flow and $7.19B in free cash flow. Capital allocation in FY2025 included $3.37B in capital expenditures, $2.06B in share buybacks, and $5.12B in dividends paid, contributing to a 5-year share count change of -5.4%.

At a last close of $242.97, McDonald's traded at a trailing P/E of 19.7x, below the 20.1x median of its S&P 500 Consumer Cyclical peers. Its forward P/E of 17.1x and EV/EBITDA of 18.8x both trade at premiums to peer medians of 15.6x and 13.2x, respectively. The stock's price-to-sales multiple is 6.2x compared to the peer median of 2.0x. Over the past year, the shares returned -18.4%, underperforming the 16.8% return of the S&P 500 (SPY). Over five years, the stock returned 12.7% versus 83.0% for the index.

McDonald's pays a quarterly dividend with an annualized forward payout of $7.72 per share, yielding 3.18%. The company has paid dividends for 51 consecutive years and delivered a 5-year annualized dividend growth rate of 7.3%. Its payout ratio is 59.3%, and its last ex-dividend date was December 1, 2026.

Wall Street analysts hold 15 Strong Buy, 4 Buy, 14 Hold, 0 Sell, and 1 Strong Sell ratings on the stock. The mean price target of $292.03 represents 20.2% upside from the last close of $242.97. For the fiscal year ending December 31, 2026, analysts estimate EPS of $12.89 on revenue of $28.15B. McDonald's exceeded EPS estimates in 3 of the last 4 quarters, with its next earnings release scheduled for November 4, 2026.

This page is an AI-written research summary of McDonald's Corporation (MCD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: MCD income statement, MCD balance sheet, MCD key metrics, MCD analyst forecast, MCD chart. See the MCD stock overview for the latest quote and news.