Latest Ratios: P/E Ratio 23.6x · EV/EBITDA 17.5x · ROE N/A. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $200.5B | $219.0B | $209.3B | $217.1B | $195.4B | $201.5B | $161.0B | $151.2B | $139.5B | $140.4B | $104.8B |
| Enterprise Value | $254.6B | $273.0B | $260.1B | $265.6B | $241.5B | $246.2B | $209.0B | $197.8B | $169.7B | $167.4B | $129.6B |
| P/E Ratio → | 23.62 | 25.58 | 25.45 | 25.65 | 31.64 | 26.70 | 34.01 | 25.08 | 23.55 | 27.02 | 22.37 |
| P/S Ratio | 7.46 | 8.14 | 8.07 | 8.52 | 8.43 | 8.68 | 8.38 | 7.07 | 6.56 | 6.15 | 4.26 |
| P/B Ratio | — | — | — | — | — | — | — | — | — | — | — |
| P/FCF | 27.90 | 30.47 | 31.37 | 29.93 | 35.60 | 28.38 | 34.81 | 26.39 | 33.02 | 37.96 | 24.73 |
| P/OCF | 19.00 | 20.75 | 22.15 | 22.59 | 26.45 | 22.05 | 25.69 | 18.61 | 20.02 | 25.29 | 17.30 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 10.15 | 10.04 | 10.42 | 10.42 | 10.60 | 10.88 | 9.26 | 7.98 | 7.34 | 5.26 |
| EV / EBITDA | 17.50 | 18.76 | 18.84 | 19.50 | 21.48 | 20.14 | 23.03 | 18.51 | 16.47 | 15.34 | 13.99 |
| EV / EBIT | 20.54 | 21.88 | 21.95 | 22.36 | 26.73 | 23.87 | 28.40 | 21.64 | 19.29 | 17.63 | 16.72 |
| EV / FCF | — | 37.99 | 38.99 | 36.62 | 44.00 | 34.67 | 45.19 | 34.53 | 40.17 | 45.28 | 30.57 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 57.4% | 57.4% | 56.8% | 57.1% | 57.0% | 54.2% | 50.8% | 52.3% | 51.0% | 46.5% | 41.4% |
| Operating Margin | 46.1% | 46.1% | 45.2% | 45.7% | 40.4% | 44.6% | 38.1% | 42.5% | 41.5% | 41.9% | 31.5% |
| Net Profit Margin | 31.9% | 31.9% | 31.7% | 33.2% | 26.6% | 32.5% | 24.6% | 28.2% | 27.9% | 22.8% | 19.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | — | — | — | — | 191.9% |
| ROA | 14.9% | 14.9% | 14.8% | 15.9% | 11.8% | 14.2% | 9.4% | 15.0% | 17.8% | 16.0% | 13.6% |
| ROIC | 18.7% | 18.7% | 19.3% | 20.8% | 17.5% | 19.4% | 14.0% | 21.8% | 27.7% | 30.9% | 25.2% |
| ROCE | 23.3% | 23.3% | 23.3% | 24.3% | 19.4% | 21.5% | 16.2% | 24.6% | 29.0% | 32.7% | 24.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 3.77 | 3.77 | 3.76 | 3.90 | 4.33 | 4.04 | 5.67 | 4.45 | 3.02 | 2.71 | 2.80 |
| Net Debt / Equity | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / EBITDA | 3.71 | 3.71 | 3.68 | 3.56 | 4.10 | 3.65 | 5.29 | 4.37 | 2.93 | 2.48 | 2.67 |
| Debt / FCF | — | 7.52 | 7.62 | 6.69 | 8.40 | 6.29 | 10.38 | 8.14 | 7.15 | 7.32 | 5.84 |
| Interest Coverage | 7.89 | 7.89 | 7.87 | 8.73 | 7.48 | 8.70 | 6.04 | 8.15 | 8.97 | 10.31 | 8.76 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.95 | 0.95 | 1.19 | 1.16 | 1.43 | 1.78 | 1.01 | 0.98 | 1.36 | 1.84 | 1.40 |
| Quick Ratio | 0.94 | 0.94 | 1.18 | 1.16 | 1.41 | 1.76 | 1.00 | 0.97 | 1.35 | 1.82 | 1.38 |
| Cash Ratio | 0.18 | 0.18 | 0.28 | 0.67 | 0.68 | 1.17 | 0.56 | 0.25 | 0.29 | 0.85 | 0.35 |
| Asset Turnover | — | 0.45 | 0.47 | 0.45 | 0.46 | 0.43 | 0.36 | 0.45 | 0.65 | 0.68 | 0.79 |
| Inventory Turnover | 187.70 | 187.70 | 200.18 | 206.25 | 191.83 | 191.42 | 185.04 | 202.89 | 204.02 | 207.48 | 244.77 |
| Days Sales Outstanding | — | 33.47 | 33.56 | 35.62 | 33.30 | 29.43 | 40.10 | 38.00 | 41.92 | 31.61 | 21.85 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.5% | 2.3% | 2.3% | 2.1% | 2.1% | 1.9% | 2.3% | 2.4% | 2.3% | 2.2% | 2.9% |
| Payout Ratio | 59.7% | 59.7% | 59.2% | 53.5% | 67.5% | 51.9% | 79.3% | 59.4% | 55.0% | 59.5% | 65.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.2% | 3.9% | 3.9% | 3.9% | 3.2% | 3.7% | 2.9% | 4.0% | 4.2% | 3.7% | 4.5% |
| FCF Yield | 3.6% | 3.3% | 3.2% | 3.3% | 2.8% | 3.5% | 2.9% | 3.8% | 3.0% | 2.6% | 4.0% |
| Buyback Yield | 1.0% | 0.9% | 1.3% | 1.4% | 2.0% | 0.4% | 0.6% | 3.3% | 3.7% | 3.3% | 10.7% |
| Total Shareholder Yield | 3.6% | 3.3% | 3.7% | 3.5% | 4.1% | 2.4% | 2.9% | 5.7% | 6.1% | 5.5% | 13.6% |
| Shares Outstanding | — | $716M | $722M | $732M | $741M | $752M | $750M | $765M | $786M | $816M | $861M |
Negative equity from buybacks
According to current market data, MCD trades at a forward P/E of 20.77, which appears to command a premium over traditional restaurant peers, likely reflecting the market's perception of its owned real estate portfolio as a defensive, bond-like asset rather than a standard consumer discretionary business.
The current valuation multiple suggests that investors are pricing in a degree of stability that exceeds the volatility typically associated with the quick-service restaurant sector. While the PEG ratio of 1.66 indicates that the market expects moderate growth, the valuation remains sensitive to interest rate fluctuations that could compress the yield spread between MCD's rental income and risk-free alternatives.
Based on reported figures, MCD's ROIC has hovered between 4.1% and 5.1% over the last ten quarters, a trend that suggests the company's aggressive share buyback program is significantly suppressing the denominator of its return metrics, thereby complicating the assessment of true operational compounding.
The relatively low ROIC figures, when compared to the high operating margins, highlight the impact of a hollowed-out equity base on traditional return ratios. Analysts should interpret these returns with caution, as the company's capital allocation strategy prioritizes returning cash to shareholders over maintaining a robust book value of invested capital.
As reported in recent financial statements, MCD maintains a highly efficient cash conversion cycle, with a CCC of only 1 day in 2026Q1, demonstrating the company's structural advantage in collecting royalties and rents before settling its own operational obligations to suppliers and service providers.
This minimal CCC is a hallmark of the franchise-heavy model, where the company acts primarily as a landlord and brand licensor rather than a traditional inventory-heavy retailer. The consistency of this metric suggests that the company's working capital management is well-insulated from the inventory-related risks that often plague other consumer-facing businesses.
Based on the provided quarterly data, MCD's interest coverage ratio has remained relatively stable, averaging approximately 7.7x over the last ten quarters, which suggests that despite a strained balance sheet, the company's recurring rental and royalty streams provide a sufficient buffer for current debt service obligations.
While the D/EBITDA ratio remains elevated, the predictability of the company's cash inflows appears to mitigate immediate refinancing risks. However, investors should monitor whether sustained high interest rates begin to erode the net interest margin, potentially limiting the company's future capacity for debt-funded share repurchases.
The Price-to-Book ratio is fundamentally misapplied to MCD, as the company's aggressive share repurchase strategy has resulted in a negative book value of equity, rendering the metric entirely non-informative for assessing the company's valuation or its underlying asset-backed competitive advantage.
Because the company's book value is distorted by accounting treatments of treasury stock and debt-funded capital returns, analysts should instead focus on EV/EBITDA or FCF yield to gauge valuation. Relying on P/B in this context obscures the true value of the company's proprietary real estate holdings and its recurring cash-generating capacity.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MCD stock.
McDonald's Corporation's current P/E ratio is 23.6x. The historical average is 22.9x. This places it at the 60th percentile of its historical range.
McDonald's Corporation's current EV/EBITDA is 17.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.9x.
Based on historical data, McDonald's Corporation is trading at a P/E of 23.6x. This is at the 60th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
McDonald's Corporation's current dividend yield is 2.53% with a payout ratio of 59.7%.
McDonald's Corporation has 57.4% gross margin and 46.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
McDonald's Corporation's Debt/EBITDA ratio is 3.8x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.