McDonald's exhibits resilient franchise economics with gross margins holding at 58.0% and operating margins expanding to 47.0% in 2026Q2, yet revenue growth decelerated to 3.7% YoY, signaling a cooling demand environment. The company's capital-light model gene...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth decelerated to 3.7% YoY in 2026Q2, yet gross margin held at 58.0% and operating margin improved to 47.0%, reflecting stable franchise economics despite an EPS miss of $0.08.
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 9/24/2026, 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) |
|---|---|---|
Q3 2026Latest 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 |
Q4 2025 Nov 5, 2025 | $3.22-3.3% vs $3.33 | $7.1B-0.1% vs $7.1B |
McDonald's is testing placing ads from other brands on the digital menu boards in its drive-thrus and in its restaurants, Bloomberg reported Tuesday (Sept. 22). The ads are shown after customers place their orders and can be viewed while customers wait for their meals, according to the report.
Grand Prize Snapshot A $1 million grand prize, according to Yahoo, is the hook McDonald's (NYSE:MCD | MCD Price Prediction) is dangling in front of American diners this fall, and it lands at an awkward moment for shareholders.
The State Street Consumer Staples Select Sector SPDR ETF (XLP) has climbed 6.6% so far in 2026, according to State Street data as of September 21. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) has fallen more than 7% over the same stretch, a 13.
McDonald's trades at $248, offering a 24.6% upside to my $309.29 intrinsic value and a compelling 3%+ forward dividend yield. MCD is implementing a robust U.S. value strategy reset, with interim digital offers and tighter franchisee alignment to address traffic and execution issues. Despite the selloff, MCD's earnings estimates remain largely intact, and valuation multiples now stand at a notable discount to historical averages.
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 |
|---|---|---|---|---|---|---|---|
| $238.32 | $169.33B | 19.94 | 3.72% | 31.85% | — | 3% | |
| $140.69 | $38.78B | 25.30 | 8.81% | 25.42% | — | — | |
| $71.66 | $24.86B | 30.49 | 12.23% | 13.13% | 24.24% | — | |
| $6.73 | $1.28B | 7.92 | -3.1% | 5.72% | 109% | — | |
| $13.46 | $256.73M | -3.20 | -6.75% | 2.84% | — | — | |
| $58.47 | $2.36B | 53.64 | 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
Get notified when MCD posts new earnings or crosses analyst targets
Free. No account needed. Unsubscribe any time.
McDonald's Corporation (MCD) stock FAQ — growth, dividends, profitability & financials explained
McDonald's Corporation (MCD) reported $27.70B in revenue for fiscal year 2025. This represents a 159% increase from $10.69B in 1996.
McDonald's Corporation (MCD) grew revenue by 3.7% over the past year. Growth has been modest.
Yes, McDonald's Corporation (MCD) is profitable, generating $8.79B in net income for fiscal year 2025 (31.9% net margin).
Yes, McDonald's Corporation (MCD) pays a dividend with a yield of 3.00%. This makes it attractive for income-focused investors.
McDonald's Corporation (MCD) generated $7.76B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
