McDonald's franchise-driven model has held gross margins in a tight 55.9% to 58.0% band and operating margins near 44% to 48% across ten quarters, supporting a reliable earnings base.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Gross margin held between 55.9% and 58.0% and operating margin between 44.3% and 48.3% over ten quarters, indicating a stable franchise cost structure even as revenue growth fluctuated.
McDonald's has exceeded revenue expectations and maintains a solid net margin, driven by its 'Accelerating the Arches 2.0' strategy.
The company is enhancing customer engagement through AI-driven operations and expanding its loyalty program, aiming for significant user growth by 2027.
McDonald's franchise-heavy model generates high operating margins, supported by substantial real estate ownership.
McDonald's reliance on franchise royalties makes it vulnerable to economic downturns and changing consumer behavior.
Rising competition in the beverage market and record-high beef prices could lead to margin compression.
Some analysts indicate that McDonald's may be overvalued based on discounted cash flow analysis, suggesting potential volatility.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Nov 4, 2026 | $3.57+5.6% vs $3.38 | $7.2B-1.7% vs $7.3B |
Q3 2026 Aug 4, 2026 | $3.38+1.8% vs $3.32 | $7.1B-0.4% vs $7.1B |
Q2 2026 May 7, 2026 | $2.83+3.3% vs $2.74 | $6.5B+0.7% vs $6.5B |
Q1 2026 Feb 11, 2026 | $3.12+2.3% vs $3.05 | $7.0B+2.5% vs $6.8B |
SEATTLE--(BUSINESS WIRE)---- $MCD #classaction--Consumers sued McDonald's alleging it mislabeled McCafé beverages “sugar free” despite containing up to 18 grams of sugar, according to Hagens Berman.
Could MCD's Value Push Turn Around Sluggish U.S. Traffic? Its digital deals and affordable meal bundles are showing early promise, but a sustained recovery remains to be proven.
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McDonald's reported mixed results in its 2026 third-quarter earnings, but the stock still rose 5% by midafternoon Nov 4. The stock price is down roughly 9% on the year, but the fast-food operator has a dividend yield of 2.7%.
Benchmark MCD against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for McDonald's Corporation (MCD)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $276.52 | $196.47B | 23.14 | 3.72% | 31.85% | — | 2.58% | |
| $161.14 | $44.41B | 28.98 | 8.81% | 39.14% | — | 1.76% | |
| $77.69 | $26.96B | 33.06 | 12.23% | 15.35% | 28.07% | 3.12% | |
| $8.15 | $1.55B | 9.59 | -3.1% | 5.72% | 109% | 8.19% | |
| $14.09 | $268.75M | -3.35 | -6.75% | 2.84% | — | 6.16% | |
| $71.89 | $2.9B | 65.95 | 15.38% | 2.56% | 7.17% | — |
McDonald's Corporation (MCD) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
McDonald's Corporation (MCD) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 4, 2026·SEC
Aug 4, 2026·SEC
Aug 4, 2026·SEC
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McDonald's Corporation (MCD) stock FAQ — growth, dividends, profitability & financials explained
McDonald's Corporation (MCD) reported $27.70B in revenue over the trailing twelve months. Revenue was $26.89B in fiscal year 2025. That is 152% more than the $10.69B of fiscal year 1996.
McDonald's Corporation (MCD) grew revenue by 3.7% in fiscal year 2025, compared with the prior fiscal year.
Yes. McDonald's Corporation (MCD) earned $8.79B in net income over the trailing twelve months (a 31.7% net margin).
Yes. McDonald's Corporation (MCD) pays a dividend that yields 2.58% at the current price, a moderate yield.
McDonald's Corporation (MCD) generated $7.76B in free cash flow over the trailing twelve months.
