McDonald's (MCD) stock
Consumer Discretionary · Restaurants
McDonald's (MCD) is a Restaurants company in the Consumer Discretionary sector, headquartered in Chicago, Illinois. As of October 23, 2026, MCD closed at $248.46, a market capitalization of $175.82 billion, the 69th largest company in the S&P 500. Over the last twelve months it generated $27.70 billion in revenue (+4% year over year) and $7.76 billion in free cash flow. The stock trades at 20.2x trailing earnings and 18.1x forward earnings.
- 1-year total return: -17.0% (dividends reinvested)
- 5-year return: +3.2% a year
- 52-week range: $229.20 – $341.75
- Gross margin 57.4%, operating margin 46.5%
- Dividend yield: 3.11%, 17 straight years of increases
- FI Handbook report card: B- across 9 metrics
- 4th largest of 47 Consumer Discretionary stocks in the S&P 500
MCD price chart
1Y price change: -19.1% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| MCD | +4.3% | -17.1% | -17.0% | +1.6% | +3.2% | +10.7% | +13.7% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1966.
MCD key statistics
- Market cap
- $175.8B
- #69 in S&P 500
- P/E (TTM)
- 20.2x
- Forward P/E
- 18.1x
- EPS (TTM)
- $12.31
- Revenue (TTM)
- $27.7B
- +4%
- Free cash flow
- $7.8B
- Gross margin
- 57.4%
- Operating margin
- 46.5%
- Return on equity
- —
- Dividend yield
- 3.11%
- 52-week range
- $229.20 – $341.75
- Beta
- 0.45
- Price / sales
- 6.3x
- EV / EBITDA
- 15.4x
- Debt / equity
- —
- Employees
- 150,000
MCD report card
B-Ten fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth3.7%D
- Gross margin57.4%B
- Operating margin46.5%A
- FCF margin28.0%A
- Return on equity——
- Net debt / EBITDA3.6xF
- Forward P/E18.1xB
- PEG ratio2.6xD
- Shareholder yield4.3%B
- Share count change / yr-93.7%A
McDonald's financials
Revenue went from $24.6B in fiscal 2016 to $26.9B in fiscal 2025, growing 1.0% a year.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $24.6B | $22.8B | $21.3B | $21.4B | $19.2B | $23.2B | $23.2B | $25.5B | $25.9B | $26.9B |
| Operating income | $7.7B | $9.6B | $8.8B | $9.1B | $7.3B | $10.4B | $9.4B | $11.6B | $11.7B | $12.4B |
| Net income | $4.7B | $5.2B | $5.9B | $6.0B | $4.7B | $7.5B | $6.2B | $8.5B | $8.2B | $8.6B |
| EPS (diluted) | $5.44 | $6.37 | $7.54 | $7.88 | $6.31 | $10.04 | $8.33 | $11.56 | $11.39 | $11.95 |
| Free cash flow | $4.2B | $3.7B | $4.2B | $5.7B | $4.6B | $7.1B | $5.5B | $7.3B | $6.7B | $7.2B |
| Buybacks | $11.2B | $4.7B | $5.2B | $5.0B | $907.8M | $845.5M | $3.9B | $3.1B | $2.8B | $2.1B |
| Dividends paid | $3.1B | $3.1B | $3.3B | $3.6B | $3.8B | $3.9B | $4.2B | $4.5B | $4.9B | $5.1B |
| Diluted shares | 861.2M | 815.5M | 785.6M | 764.9M | 750.1M | 752 | 741 | 732 | 722 | 716 |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into MCD?
A reverse DCF asks what growth the current price requires. With an enterprise value of $229.6B and $7.8B of trailing free cash flow, McDonald's needs to grow free cash flow about 20.5% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew 9.2% a year over the last five years.
P/E ratio history
Current 20.8x vs. median 24.8x (10th–90th percentile 16.9x–31.6x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
MCD dividend
- Dividend yield
- 3.11%
- Annual dividend
- $7.72
- Years of increases
- 17
- 5-yr dividend growth
- 7.3%
- per year
- Payout ratio
- 60%
- Payments per year
- 4
Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.
MCD earnings
Next report: November 4, 2026. McDonald's has beaten EPS estimates 3 quarters in a row. Last quarter's revenue was $7.1B (+4% year over year).
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Aug 4, 2026 | $3.32 | $3.38 | +1.8% |
| May 7, 2026 | $2.74 | $2.83 | +3.1% |
| Feb 11, 2026 | $3.05 | $3.12 | +2.2% |
| Nov 5, 2025 | $3.33 | $3.22 | -3.4% |
| Aug 6, 2025 | $3.15 | $3.19 | +1.4% |
| May 1, 2025 | $2.67 | $2.67 | -0.0% |
| Feb 10, 2025 | $2.86 | $2.83 | -1.0% |
| Oct 29, 2024 | $3.20 | $3.23 | +0.9% |
Stocks like MCD
| Name | Today | 1Y | Mkt cap | P/E | |
|---|---|---|---|---|---|
 SBUX Starbucks | -1.09% | +21% | $114.9B | 58.3x | Compare |
 YUM Yum! Brands | -3.08% | +4% | $40.9B | 18.9x | Compare |
 CMG Chipotle Mexican Grill | -2.20% | -34% | $34.8B | 25.7x | Compare |
 DRI Darden Restaurants | -2.37% | +18% | $24.0B | 20.6x | Compare |
 DPZ Domino's Pizza | -1.29% | -24% | $10.3B | 17.3x | Compare |
 AMZN Amazon.com | -0.95% | +12% | $2.7T | 20.0x | Compare |
 TSLA Tesla | -0.63% | -17% | $1.5T | 409.0x | Compare |
 HD Home Depot | -2.41% | -15% | $319.1B | 21.5x | Compare |
MCD news
- McDonald’s Bets $8.5 Billion on NEXT as Its CEO Warns Traffic Will Stay Flat · Oct 24, 2026
- McDonald's Japan (TSE:2702) Stock May Look Fully Valued On Earnings · Oct 24, 2026
- McDonald's changes its discount strategy · Oct 24, 2026
- Why Is McDonald's (MCD) Challenging Tokenized Trading Of Its Shares? · Oct 23, 2026
- McDonald's Has Lost a Fifth of Its Value in 2026. Is It Time to Buy? · Oct 23, 2026
MCD stock FAQ
What is MCD's market cap?
McDonald's's market capitalization is $175.82 billion as of October 23, 2026, ranking 69th in the S&P 500.
What is MCD's P/E ratio?
MCD trades at a trailing price-to-earnings ratio of 20.2x and a forward P/E of 18.1x. Its median P/E over the period we track is 24.8x.
Does MCD pay a dividend?
Yes. McDonald's pays $7.72 per share a year, a 3.11% yield. It has raised its dividend 17 years in a row. Dividends grew 7.3% a year over the last five years.
How much has MCD stock returned?
Including reinvested dividends, MCD returned -17.0% over one year, +3.2% a year over five years, +10.7% a year over ten years through October 23, 2026.
Is MCD stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies McDonald's must grow free cash flow about 21% a year for the next decade. Its free cash flow grew 9% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
When does MCD report earnings?
McDonald's is expected to report earnings on November 4, 2026. It has beaten EPS estimates 3 quarters in a row.
How many employees does McDonald's have?
McDonald's has about 150,000 full-time employees, or $184,680 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology