McDonald's Corporation (MCD) Financial Ratios
30 years of historical data (1995–2024) · Consumer Cyclical · Restaurants
EV/EBITDA
↓
18.33
↓-11% vs avg
5yr avg: 20.60
30Y Low9.3·High23.0
P/FCF
↓
30.32
-5% vs avg
5yr avg: 32.02
30Y Low15.7·High154.4
P/B Ratio
N/A
—
5yr avg: N/A
30Y Low2.0·High15.7
ROE
N/A
—
5yr avg: N/A
30Y Low9%·High192%
Debt/EBITDA
↓
3.76
↓-13% vs avg
5yr avg: 4.34
30Y Low1.3·High5.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
MCD Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
McDonald's Corporation trades at 24.9x earnings, 13% below its 5-year average of 28.7x, sitting at the 67th percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 19.6x, the stock trades at a premium of 27%. On a free-cash-flow basis, the stock trades at 30.3x P/FCF, 5% below the 5-year average of 32.0x.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $202.3B | $209.3B | $217.1B | $195.4B | $201.5B | $161.0B | $151.2B | $139.5B | $140.4B | $104.8B | $111.6B |
| Enterprise Value | $253.2B | $260.1B | $265.6B | $241.5B | $246.2B | $209.0B | $197.8B | $169.7B | $167.4B | $129.6B | $128.0B |
| P/E Ratio → | 24.94 | 25.45 | 25.65 | 31.64 | 26.70 | 34.01 | 25.08 | 23.55 | 27.02 | 22.37 | 24.61 |
| P/S Ratio | 7.81 | 8.07 | 8.52 | 8.43 | 8.68 | 8.38 | 7.07 | 6.56 | 6.15 | 4.26 | 4.39 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | 15.74 |
| P/FCF | 30.32 | 31.37 | 29.93 | 35.60 | 28.38 | 34.81 | 26.39 | 33.02 | 37.96 | 24.73 | 23.62 |
| P/OCF | 21.42 | 22.15 | 22.59 | 26.45 | 22.05 | 25.69 | 18.61 | 20.02 | 25.29 | 17.30 | 17.07 |
P/E links to full P/E history page with 30-year chart
MCD EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
McDonald's Corporation's enterprise value stands at 18.3x EBITDA, 11% below its 5-year average of 20.6x. The Consumer Cyclical sector median is 11.4x, placing the stock at a 61% premium on an enterprise-value basis.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 10.04 | 10.42 | 10.42 | 10.60 | 10.88 | 9.26 | 7.98 | 7.34 | 5.26 | 5.04 |
| EV / EBITDA | 18.33 | 18.84 | 19.50 | 21.48 | 20.14 | 23.03 | 18.51 | 16.47 | 15.34 | 13.99 | 14.71 |
| EV / EBIT | 21.62 | 21.95 | 22.36 | 26.73 | 23.87 | 28.40 | 21.64 | 19.29 | 17.63 | 16.72 | 17.80 |
| EV / FCF | — | 38.99 | 36.62 | 44.00 | 34.67 | 45.19 | 34.53 | 40.17 | 45.28 | 30.57 | 27.10 |
MCD Profitability
Margins and return-on-capital ratios measuring operating efficiency
McDonald's Corporation earns an operating margin of 45.2%, significantly above the Consumer Cyclical sector average of 2.9%. Operating margins have expanded from 40.4% to 45.2% over the past 3 years, signaling improving operational efficiency. ROIC of 19.3% represents solid returns on invested capital versus a sector median of 5.8%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 56.8% | 56.8% | 57.1% | 57.0% | 54.2% | 50.8% | 52.3% | 51.0% | 46.5% | 41.4% | 38.5% |
| Operating Margin | 45.2% | 45.2% | 45.7% | 40.4% | 44.6% | 38.1% | 42.5% | 41.5% | 41.9% | 31.5% | 28.1% |
| Net Profit Margin | 31.7% | 31.7% | 33.2% | 26.6% | 32.5% | 24.6% | 28.2% | 27.9% | 22.8% | 19.0% | 17.8% |
Return on Capital
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | 191.9% | 45.4% |
| ROA | 14.8% | 14.8% | 15.9% | 11.8% | 14.2% | 9.4% | 15.0% | 17.8% | 16.0% | 13.6% | 12.6% |
| ROIC | 19.3% | 19.3% | 20.8% | 17.5% | 19.4% | 14.0% | 21.8% | 27.7% | 30.9% | 25.2% | 21.8% |
| ROCE | 23.3% | 23.3% | 24.3% | 19.4% | 21.5% | 16.2% | 24.6% | 29.0% | 32.7% | 24.8% | 21.5% |
MCD Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
McDonald's Corporation carries a Debt/EBITDA ratio of 3.8x, which is moderately leveraged (14% below the sector average of 4.4x). Net debt stands at $50.9B ($51.9B total debt minus $1.1B cash). Interest coverage of 7.8x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | — | 3.40 |
| Debt / EBITDA | 3.76 | 3.76 | 3.90 | 4.33 | 4.04 | 5.67 | 4.45 | 3.02 | 2.71 | 2.80 | 2.77 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | 2.32 |
| Net Debt / EBITDA | 3.68 | 3.68 | 3.56 | 4.10 | 3.65 | 5.29 | 4.37 | 2.93 | 2.48 | 2.67 | 1.89 |
| Debt / FCF | — | 7.62 | 6.69 | 8.40 | 6.29 | 10.38 | 8.14 | 7.15 | 7.32 | 5.84 | 3.48 |
| Interest Coverage | 7.78 | 7.78 | 8.56 | 7.76 | 8.73 | 6.01 | 8.08 | 8.99 | 10.37 | 8.75 | 11.19 |
MCD Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.19x means McDonald's Corporation can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has declined from 1.43x to 1.19x over the past 3 years.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.19 | 1.19 | 1.16 | 1.43 | 1.78 | 1.01 | 0.98 | 1.36 | 1.84 | 1.40 | 3.27 |
| Quick Ratio | 1.18 | 1.18 | 1.16 | 1.41 | 1.76 | 1.00 | 0.97 | 1.35 | 1.82 | 1.38 | 3.23 |
| Cash Ratio | 0.28 | 0.28 | 0.67 | 0.68 | 1.17 | 0.56 | 0.25 | 0.29 | 0.85 | 0.35 | 2.60 |
| Asset Turnover | — | 0.47 | 0.45 | 0.46 | 0.43 | 0.36 | 0.45 | 0.65 | 0.68 | 0.79 | 0.67 |
| Inventory Turnover | 200.18 | 200.18 | 206.25 | 191.83 | 191.42 | 185.04 | 202.89 | 204.02 | 207.48 | 244.77 | 156.08 |
| Days Sales Outstanding | — | 33.56 | 35.62 | 33.30 | 29.43 | 40.10 | 38.00 | 41.92 | 31.61 | 21.85 | 18.65 |
MCD Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
McDonald's Corporation returns 3.8% to shareholders annually — split between a 2.4% dividend yield and 1.4% buyback yield. A payout ratio of 59.2% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 4.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.4% | 2.3% | 2.1% | 2.1% | 1.9% | 2.3% | 2.4% | 2.3% | 2.2% | 2.9% | 2.9% |
| Payout Ratio | 59.2% | 59.2% | 53.5% | 67.5% | 51.9% | 79.3% | 59.4% | 55.0% | 59.5% | 65.3% | 71.3% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.0% | 3.9% | 3.9% | 3.2% | 3.7% | 2.9% | 4.0% | 4.2% | 3.7% | 4.5% | 4.1% |
| FCF Yield | 3.3% | 3.2% | 3.3% | 2.8% | 3.5% | 2.9% | 3.8% | 3.0% | 2.6% | 4.0% | 4.2% |
| Buyback Yield | 1.4% | 1.3% | 1.4% | 2.0% | 0.4% | 0.6% | 3.3% | 3.7% | 3.3% | 10.7% | 5.5% |
| Total Shareholder Yield | 3.8% | 3.7% | 3.5% | 4.1% | 2.4% | 2.9% | 5.7% | 6.1% | 5.5% | 13.6% | 8.4% |
| Shares Outstanding | — | $722M | $732M | $741M | $752M | $750M | $765M | $786M | $816M | $861M | $945M |
Peer Comparison
Compare MCD with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 MCDYou | $202B | 24.9 | 18.3 | 30.3 | 56.8% | 45.2% | — | 19.3% | 3.8 |
 YUM | $43B | 28.1 | 19.9 | 26.3 | 46.2% | 30.8% | — | 48.1% | 4.4 |
 QSR | $27B | 32.8 | 17.5 | 18.5 | 41.1% | 23.7% | 15.5% | 8.2% | 7.1 |
 WEN | $1B | 7.0 | 9.3 | 4.9 | 35.2% | 16.5% | 68.3% | 7.1% | 7.7 |
 JACK | $261M | -3.2 | 82.8 | 3.5 | 28.7% | -1.2% | — | -0.6% | 77.6 |
 SHAK | $4B | 88.6 | 23.0 | 68.8 | 18.0% | 5.9% | 8.7% | 6.0% | 4.7 |
 CMG | $43B | 28.7 | 21.9 | 29.4 | 25.4% | 16.9% | 47.4% | 15.3% | 4.1 |
 SBUX | $121B | 65.3 | 27.5 | 49.7 | 24.2% | 9.6% | — | 17.7% | 5.1 |
 DPZ | $11B | 18.5 | 15.0 | 16.3 | 40.0% | 19.3% | — | 73.5% | 5.0 |
 PZZA | $1B | 37.5 | 7.1 | 18.1 | 28.9% | 4.3% | — | 48.3% | 1.2 |
 WING | $4B | 23.4 | 23.2 | 37.5 | 82.6% | 27.6% | — | 46.0% | 6.1 |
| Consumer Cyclical Median | — | 19.6 | 11.4 | 15.0 | 36.9% | 2.9% | 5.6% | 5.8% | 4.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonMCD — Frequently Asked Questions
Quick answers to the most common questions about buying MCD stock.
What is McDonald's Corporation's P/E ratio?
McDonald's Corporation's current P/E ratio is 24.9x. The historical average is 22.8x. This places it at the 67th percentile of its historical range.
What is McDonald's Corporation's EV/EBITDA?
McDonald's Corporation's current EV/EBITDA is 18.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.7x.
Is MCD stock overvalued?
Based on historical data, McDonald's Corporation is trading at a P/E of 24.9x. This is at the 67th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is McDonald's Corporation's dividend yield?
McDonald's Corporation's current dividend yield is 2.37% with a payout ratio of 59.2%.
What are McDonald's Corporation's profit margins?
McDonald's Corporation has 56.8% gross margin and 45.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does McDonald's Corporation have?
McDonald's Corporation's Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.