McDonald's (MCD) Stock Analysis
NYQ · Consumer Cyclical · Restaurants
$236.63
+0.13 (+0.05%)
MCD Interactive Price Chart & Trading Signals
MCD Stock Snapshot — Valuation, Risk & Technical Signals
MCD Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$167.45B
P/E Ratio
19.21
Forward P/E
17.06
PEG Ratio
2.04
P/B Ratio
-163.64
EPS
$12.32
Dividend Yield
3.26%
52W Range
$234.03 – $341.75
Beta
0.41
Volume
0.6M
ROE
—
Profit Margin
31.7%
Revenue Growth
3.7%
Gross Margin
57.4%
EV/EBITDA
14.81
Analyst Target
$299.90
The trailing price-to-earnings ratio stands at 19.2x. Forward P/E of 17.1x implies earnings expansion expected. EV/EBITDA sits at 14.81x. Market capitalization is $167.45B. Revenue is growing at 3.7% on a trailing basis. Earnings are expanding at 5.7%. Profit margins are 31.7%. Beta of 0.41 indicates defensive profile.
Analyst Consensus
Recommendation
Buy
Low Target
$250.00
Mean Target
$299.90
High Target
$390.00
Based on 29 analysts
About McDonald's
McDonald's Corporation owns, operates, and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, frozen desserts, sundaes, soft serve cones, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates franchised restaurants under various structures, including conventional franchise, developmental license, or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago, Illinois.
MCD Deep Dive Analysis
Bottom Line
Verdict
OvervaluedBest for
General investorWatch out for
Premium valuationNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
McDonald's Corporation (MCD) trades above our multi-model fair value estimate of $168.65 by approximately 28.7%. Trailing P/E: 19.2x. Profitability signals include profit margin of 31.7%. Recent growth metrics show revenue growth of 3.7% and earnings growth of 5.7%. Risk profile: defensive beta of 0.41. Consensus: buy.
Valuation, Growth & Risk
Valuation
Overvalued
P/E 19.2x
Price is above what fundamentals suggest.
Growth
Stable
Rev 3.7%
Revenue is moving sideways.
Risk
Low
Beta 0.41
Movement is likely to track the broader market.
Valuation Snapshot
McDonald's Corporation (MCD) trades above our multi-model fair value estimate of $168.65 by approximately 28.7%. The trailing price-to-earnings ratio stands at 19.2x. Forward P/E of 17.1x suggests earnings compression ahead. Price-to-sales is 6.0x. EV/EBITDA sits at 14.8x. Market capitalization is $167.45B.
Why it matters: Paying a premium works only if the company keeps growing faster than expected.
Growth & Profitability
Revenue is growing at 3.7% on a trailing basis. Earnings are expanding at 5.7%. Profit margins are 31.7%. Return on assets is 13.3%.
Why it matters: Stable revenue is fine, but watch for margin pressure that could limit profit growth.
Risk Profile
Beta of 0.41 indicates defensive profile. Net debt position is $53.78B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $299.90 implies 26.7% upside. Target range spans $250.00 to $390.00. 29 analysts cover the stock. Consensus recommendation: buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
MCD Overvalued
McDonald's Corporation (MCD) trades above our multi-model fair value estimate of $168.65 by approximately 28.7%.
Frequently Asked Questions
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About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.