McDonald's (MCD): analysis in plain words
Is McDonald's cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
McDonald's (MCD) is listed on the NYSE and we classify it in restaurants. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against McDonald's according to those figures, and the questions people ask most about the stock. No buy or sell tips.
McDonald's (MCD) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $280.22 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 22.8x | Price over earnings per share |
| Revenue growth | +3.7% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 31.7% | Profit for every 100 of sales |
| Net debt / EBITDA | 3.6x | Years of operating profit to repay debt |
| Dividend yield | 2.93% | Annual dividend over price |
| Market cap | $198.3 billion | What the stock market values it at |
The McDonald's figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any MCD figure that is not available shows as N/A: we do not estimate it.
How McDonald's makes money
McDonald's has most of its restaurants run by franchisees, who pay it rent and royalties on sales, and that is its main source of profit. The rest comes from sales at company-operated restaurants. It reports three segments: U.S., International Operated Markets, and International Developmental Licensed Markets.
Over the last 12 months, McDonald's brought in revenue of $27.7 billion. For every 100 it sells, McDonald's keeps 57.4 after the direct cost of what it sells (gross margin) and 46.5 after all operating costs (operating margin). With 150,000 full-time employees, that is about $185,000 of revenue per employee.
McDonald's against its sector
To know whether a McDonald's figure is high or low you have to put it next to similar companies. This table compares McDonald's with the median of the 4 restaurants companies Fintols covers, with data as of November 4, 2026.
| Figure | McDonald's | restaurants median |
|---|---|---|
| P/E | 22.8x | 27.8x (4) |
| Revenue growth | +3.7% | +6.6% (4) |
| Net margin | 31.7% | 18.1% (4) |
| Dividend yield | 2.93% | 2.16% (4) |
| Net debt / EBITDA | 3.6x | 3.4x (4) |
In short, against the typical restaurants company, McDonald's trades on a lower P/E, grows more slowly and earns a wider margin. By size, McDonald's ranks number 1 of 4 restaurants companies quoted in USD on Fintols.
The bull case for McDonald's
What works in favour of McDonald's, according to its figures as of November 4, 2026:
- McDonald's keeps 31.7 of every 100 it sells as net profit, against 18.1 for the median restaurants company: a margin like that leaves money to invest, buy back shares or pay dividends.
- For income seekers, McDonald's pays a dividend yielding 2.93% at today's price, using 60% of its profit to fund it.
- It is the largest by market value of the 4 restaurants companies quoted in USD that Fintols covers, and scale gives it bargaining power with customers and suppliers.
The main risk for McDonald's
Debt is heavy: McDonald's carries net debt equal to 3.6x its annual EBITDA. With high interest rates or a weak year, interest payments eat into what it can invest or pay out.
And, like the rest of restaurants, McDonald's is exposed to rising wages and food costs, and customers eating out less.
Frequently asked questions about McDonald's
Is it a good time to buy McDonald's stock?
Fintols does not tell you whether to buy or sell McDonald's, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, McDonald's stock trades at $280.22, 18% below its 52-week high ($341.75) and 22% above its low ($229.20). Its P/E is 22.8x against a restaurants median of 27.8x, and 20.4x on the earnings analysts expect over the next 12 months. With McDonald's, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does McDonald's pay a dividend?
Yes. As of November 4, 2026, McDonald's pays $7.72 per share a year, which at today's price is a yield of 2.93%. It uses 60% of its profit to pay it, which leaves room to keep paying it if profit dips. Its average dividend yield over the last five years is 2.26%. The restaurants median on Fintols is 2.16%.
Is McDonald's stock expensive?
It depends on what you compare it with. On P/E, McDonald's trades at 22.8x its last 12 months of earnings: cheaper than the restaurants median (27.8x). Including its debt, McDonald's is valued at 16.1x its EBITDA (EV/EBITDA). A high P/E alone does not make McDonald's expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are McDonald's's competitors?
On Fintols we compare McDonald's with Starbucks, Chipotle and Yum! Brands, which are also in restaurants. As of November 4, 2026, Starbucks is worth $125.1 billion and trades on a P/E of 49.6; Chipotle is worth $44.5 billion and trades on a P/E of 32.9; Yum! Brands is worth $44.7 billion and trades on a P/E of 13.4. Each has a side-by-side comparison with McDonald's below.
McDonald's competitors
- Starbucks (SBUX) analysis · McDonald's vs Starbucks comparison
- Chipotle (CMG) analysis · McDonald's vs Chipotle comparison
- Yum! Brands (YUM) analysis · McDonald's vs Yum! Brands comparison
To understand McDonald's better
More companies like McDonald's: restaurants stocks, S&P 500 companies and S&P 100 companies. Open the full MCD analysis with its valuation and scenarios. Educational content about McDonald's, not investment advice.