McDonald's Corporation
- Open
- 278.21
- Day high
- 278.40
- Day low
- 272.50
- Prev close
- 276.49
- Volume
- 3.0M
- Mkt cap
- $195.1B
- P/E (TTM)
- 22.6
- EPS (TTM)
- $12.17
- P/B
- -151.7
- P/S
- 7.1
- Yield
- 2.68%
- Per share
- $7.35
- ▼Insiders net selling -$3.3M over the last 3 months (0 open-market buys, 5 sales)
- 🏛Institutions mixed (13F)
McDonald's Corporation (MCD) is a Consumer Cyclical company listed on NYSE. The stock is down 7% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 5 sales (SEC Form 4). Drillr has 1 published research article covering MCD.
McDonald's Corporation (MCD) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 10 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MCD earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $2.74 | $2.83 | +3.3% | $6.5B | +0.7% |
| Feb 11, 2026 | $3.05 | $3.12 | +2.3% | $7.0B | +2.5% |
| Nov 5, 2025 | $3.33 | $3.22 | -3.3% | $7.1B | -0.1% |
| Aug 6, 2025 | $3.14 | $3.19 | +1.6% | $6.8B | +2.2% |
| May 1, 2025 | $2.66 | $2.67 | +0.4% | $6.0B | -2.4% |
| Apr 30, 2024 | $2.72 | $2.70 | -0.7% | $6.2B | +0.2% |
| Jul 27, 2023 | $2.79 | $3.17 | +13.6% | $6.5B | +3.6% |
| Jan 31, 2023 | $2.45 | $2.59 | +5.7% | $5.9B | +3.6% |
| Oct 27, 2022 | $2.58 | $2.68 | +3.9% | $5.9B | +3.0% |
| Jul 26, 2022 | $2.45 | $2.55 | +4.1% | $5.7B | -1.4% |
| Apr 28, 2022 | $2.18 | $2.28 | +4.6% | $5.7B | +1.7% |
| Jan 27, 2022 | $2.34 | $2.23 | -4.7% | $6.0B | -0.2% |
MCD insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 2, 2026 | Taubert Jennifer Ldirector | Grant | 97 | — |
| Jul 2, 2026 | Taubert Jennifer Ldirector | Grant | 111 | — |
| Jul 2, 2026 | Dean Lloyd Hdirector | Grant | 117 | — |
| Jul 2, 2026 | Hsu Michael D.director | Grant | 97 | — |
| Jul 2, 2026 | Hsu Michael D.director | Grant | 111 | — |
| Jul 2, 2026 | Dean Lloyd Hdirector | Grant | 134 | — |
| Jun 10, 2026 | Erlinger Joseph M.officer: President, McDonald's USA | Option | 5,252 | $157.79 |
| Jun 10, 2026 | Erlinger Joseph M.officer: President, McDonald's USA | Sell | 5,252 | $284.32 |
| Jun 1, 2026 | Ralls-Morrison Desireeofficer: EVP, Chief Legal Officer | Sell | 2,763 | $278.36 |
| May 27, 2026 | Erlinger Joseph M.officer: President, McDonald's USA | Sell | 333 | $280.11 |
| Apr 23, 2026 | Erlinger Joseph M.officer: President, McDonald's USA | Sell | 333 | $302.72 |
| Apr 13, 2026 | Erlinger Joseph M.officer: President, McDonald's USA | Option | 2,626 | $157.79 |
| Apr 13, 2026 | Erlinger Joseph M.officer: President, McDonald's USA | Sell | 2,626 | $307.00 |
| Mar 24, 2026 | Erlinger Joseph M.officer: President, McDonald's USA | Sell | 333 | $313.47 |
| Mar 19, 2026 | Baroni Darioofficer: President, IDL | Sell | 600 | $323.77 |
Source: MCD SEC Form 4 filings, latest Jul 2, 2026. For informational purposes only — not investment advice.
See the full MCD insider & 13F page →McDonald's Corporation company profile
Overview
McDonald's Corporation (NYSE:MCD) is the world's largest fast-food restaurant chain, founded in 1940 by Richard and Maurice McDonald in San Bernardino, California. The company was incorporated in 1955 when Ray Kroc opened the first franchised McDonald's restaurant in Des Plaines, Illinois, and has since grown to operate over 40,000 restaurants across more than 100 countries. Headquartered in Chicago, Illinois, McDonald's has evolved from a simple burger stand into a global quick-service restaurant empire, serving approximately 70 million customers daily through its iconic golden arches brand.
Business
McDonald's operates in the quick-service restaurant (QSR) industry, commonly known as fast food, which focuses on providing affordable, convenient meals with rapid service. The company's core business revolves around operating and franchising McDonald's restaurants that serve a standardized menu of hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, and desserts. The company's restaurant portfolio includes several key menu categories that drive revenue. The beef platform centers around McDonald's signature Big Mac, Quarter Pounder, and other hamburger offerings, which represent the brand's traditional foundation. The chicken category has become increasingly important, generating approximately $25 billion in annual system-wide sales through products like Chicken McNuggets, McCrispy chicken sandwiches, and various chicken wraps. The breakfast segment includes items like Egg McMuffins, hotcakes, and breakfast burritos, while the beverage portfolio encompasses soft drinks, coffee through the McCafé brand, and specialty beverages. McDonald's operates through three primary business segments. The United States segment represents the company's largest market, accounting for approximately 35-40% of total revenues. The International Operated Markets (IOM) segment includes company-operated restaurants in major developed markets like the United Kingdom, Canada, Australia, France, and Germany, contributing roughly 25-30% of revenues. The International Developmental Licensed Markets (IDL) segment encompasses franchised and licensed restaurants in emerging markets across Asia, the Middle East, Africa, and Latin America, representing about 30-35% of total revenues. The company has also been expanding its digital ecosystem, with loyalty programs now operating in over 50 markets and serving more than 166 million active members. Additionally, McDonald's has been experimenting with new concepts like CosMc's, a beverage-focused restaurant format designed to compete in the specialty coffee and customizable drink market.
Revenue model
McDonald's operates primarily as a franchisor rather than a traditional restaurant operator, which creates a highly scalable and asset-light business model. The company generates revenue through several key streams that leverage its global brand and operational expertise. Franchise fees and royalties represent the largest revenue source, typically accounting for 60-70% of total revenues. Franchisees pay an initial franchise fee to open a McDonald's restaurant, followed by ongoing royalty payments usually calculated as a percentage of gross sales (typically 4-5%). This creates a predictable, recurring revenue stream that grows with franchisee sales performance. Rent and real estate income provides another significant revenue stream, as McDonald's often owns or controls the real estate where franchised restaurants operate, collecting rent payments that can include both fixed and percentage-of-sales components. Company-operated restaurants contribute approximately 15-20% of revenues through direct food and beverage sales. While these restaurants generate higher absolute revenues per location, they also carry higher operating costs and lower margins compared to franchised locations. Initial fees and other income include various charges for training, equipment, and support services provided to franchisees. The business model's profitability is influenced by several key factors. Positive margin drivers include growing same-store sales at franchised locations (which directly increase royalty income), successful new restaurant openings, effective cost management in company-operated stores, and the expansion of higher-margin digital sales channels. The company's scale advantages in purchasing, marketing, and technology development help maintain competitive positioning while supporting franchisee profitability. Margin pressures can arise from commodity price inflation affecting food costs, labor cost increases in company-operated markets, competitive pricing pressures that limit franchisees' ability to raise prices, and economic downturns that reduce consumer spending on dining out. The company's heavy exposure to low and middle-income consumers makes it particularly sensitive to economic pressures that affect discretionary spending. Additionally, currency fluctuations can impact international revenues when translated back to U.S. dollars, while regulatory changes regarding minimum wages, food safety, or franchise relationships can affect operational costs and business structure.
Competitive moat
McDonald's possesses a strong and multifaceted economic moat built on several sustainable competitive advantages that have proven durable over decades. The company's primary moat stems from its powerful brand recognition and global scale, with the golden arches being one of the most recognizable symbols worldwide, creating significant consumer preference and pricing power. The franchise business model itself creates a substantial moat by generating high-margin, recurring revenues while requiring relatively low capital investment from McDonald's corporate. This asset-light structure allows the company to achieve superior returns on invested capital compared to traditional restaurant operators. The franchise system also creates aligned incentives with local operators who have invested their own capital and are motivated to succeed, while McDonald's provides the brand, systems, and support infrastructure. Operational scale advantages provide significant cost benefits through purchasing power with suppliers, shared marketing costs across thousands of locations, and the ability to invest heavily in technology and innovation that smaller competitors cannot match. The company's real estate portfolio in prime locations, often owned or controlled through long-term leases, creates additional barriers to entry and provides stable rental income streams. McDonald's supply chain and operational systems represent decades of refinement and optimization that would be extremely difficult for competitors to replicate. The company's ability to maintain consistent food quality, service speed, and customer experience across tens of thousands of locations worldwide demonstrates operational excellence that creates customer loyalty and repeat visits. However, the moat faces several competitive pressures. Changing consumer preferences toward healthier, more premium, or locally-sourced food options have enabled competitors like Chipotle, Panera, and various fast-casual chains to capture market share, particularly among higher-income demographics. Delivery and digital disruption has leveled the playing field somewhat, as smaller chains can now reach customers without requiring extensive physical footprints. Labor cost pressures and automation trends could potentially reduce McDonald's operational advantages if competitors successfully implement similar technologies. The strength of McDonald's moat remains substantial but requires continuous investment in menu innovation, digital capabilities, and operational excellence to maintain its competitive position against both traditional QSR competitors and emerging fast-casual alternatives.
Risks & safety
McDonald's demonstrates a moderate margin of safety with strong cash generation capabilities but elevated debt levels and premium valuation metrics that warrant careful consideration. Liquidity and Solvency: - Cash and short-term investments of $1.1 billion provide adequate liquidity buffer - Current ratio of 1.19 indicates sufficient short-term liquidity coverage - Strong free cash flow generation of $6.7 billion annually (2024) supports debt service and shareholder returns - Total debt burden is significant with liabilities exceeding assets, creating negative shareholder equity - Debt-to-equity metrics are distorted by negative equity, but cash flow coverage appears adequate Valuation Metrics: - Price-to-earnings ratio of 25.3x represents a premium valuation typical of quality franchisors - EV/EBITDA of 18.6x suggests market expectations for continued growth - Strong profitability metrics with EBITDA margins around 54% demonstrate pricing power - Return on equity calculations are distorted by negative book equity due to capital structure Other Considerations: - Recession-resistant business model with exposure to value-conscious consumers - Geographic diversification across developed and emerging markets provides stability - Franchise model reduces operational risk but creates dependency on franchisee performance - Commodity price exposure and labor cost inflation present ongoing margin pressures
Recent development
Over the past several years, McDonald's has pursued its "Accelerating the Arches" strategy focused on maximizing the three key pillars of marketing, core menu, and digital capabilities, with restaurant development added as a fourth pillar. The company has made significant investments in digital transformation, expanding its loyalty program to over 50 markets with more than 166 million active users, targeting 250 million users by 2027. Digital sales now represent over 35% of system-wide sales in major markets, with the McDonald's app downloaded over 40 million times in the U.S. alone. Menu innovation has centered on expanding the chicken portfolio, with the McCrispy chicken sandwich now available in over 70 markets and generating $25 billion in annual system-wide sales across the chicken category. The company has also been piloting the "Big Arch" burger in international markets and reintroducing popular items like snack wraps in the U.S. market. Recent launches include McCrispy Chicken Strips and the Chicken Big Mac to capitalize on growing consumer preference for chicken products. In response to challenging economic conditions and consumer pressure, McDonald's has pivoted toward enhanced value positioning with the launch of the McValue platform in the U.S. and Every Day Affordable Price (EDAP) menus in international markets. The successful $5 meal deal helped improve brand perception around value and drove traffic among lower-income consumers. The company has also been experimenting with new business ventures, including the CosMc's beverage-focused restaurant concept, which aims to compete in the specialty coffee and customizable drink market. Operational excellence initiatives include the Performance and Customer Excellence (PACE) program, the "Best Burger" training deployment across global restaurants, and continued restaurant modernization efforts. The company is targeting 50,000 restaurants by 2027 and plans to open approximately 2,200 new locations in 2025. Recent challenges have included managing an E. coli outbreak linked to supplier onions, which temporarily impacted U.S. sales but was quickly addressed through swift supply chain action and transparency with health authorities.
MCD company profile · for informational purposes only — not investment advice.
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