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McDonald’s Corporation
🇺🇸 MCD · NYSE/NASDAQ · US5801351017
Consumer
USD 275.03 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
22.7
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 275.03 ÷ 12.13 = 22.7
TTM period through: 2026-03-31
Forward P/E (estimated): 20.7
Based on analyst estimates
Reference: Provider P/E (Trailing): 23.2
Net Debt/EBITDA (TTM)
3.6x
Latest quarter: 15.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 15.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
EV/EBITDA
16.4x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.71%
TTM: 2.69%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 2.71%
Trailing Yield (TTM, last 12 months): 2.69%
Payout Ratio (Fwd)
61.3%
TTM: 59.6%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 61.3%
Payout (TTM): 59.6%
Cash Flow Payout (TTM): 49.1%
FCF Coverage (TTM): 1.36x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
7.3%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 02 Jun 2027 | — | USD | 1.86 |
| Forecast* | Quarterly | — | 03 Mar 2027 | — | USD | 1.86 |
| Forecast* | Quarterly | — | 01 Dec 2026 | — | USD | 1.86 |
| Forecast* | Quarterly | — | 02 Sep 2026 | — | USD | 1.77 |
| Paid | Quarterly | 20 May 2026 | 02 Jun 2026 | 16 Jun 2026 | USD | 1.86 |
| Paid | Quarterly | 04 Feb 2026 | 03 Mar 2026 | 17 Mar 2026 | USD | 1.86 |
| Paid | Quarterly | 22 Oct 2025 | 01 Dec 2025 | 15 Dec 2025 | USD | 1.86 |
| Paid | Quarterly | 22 Jul 2025 | 02 Sep 2025 | 16 Sep 2025 | USD | 1.77 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
McDonald's is a premier global franchisor with an unrivaled competitive moat and highly secure cash flows backed by its massive real estate portfolio. While the fundamental business remains extremely robust and the dividend is exceptionally reliable, current valuation multiples (P/E near 23) offer limited upside. Existing shareholders should maintain positions to capture the reliable dividend growth, but new investors may want to wait for a better entry point closer to historical fair value.
Sector Context
McDonald's operates a highly profitable global franchise model, functioning heavily as a real estate company that leases prime locations to its franchisees while collecting rent and royalties. For dividend investors, this hybrid consumer/real estate structure provides utility-like cash flow stability and inflation protection, though the underlying restaurant operations remain somewhat exposed to consumer spending cycles and labor cost pressures.
📊 Strategy Analysis
- • Unrivaled competitive moat underpinned by a massive $120B global real estate portfolio, generating highly predictable rent and royalty income.
- • Exceptional dividend sustainability with a safe Free Cash Flow payout ratio of 49.1% and a track record of decades of consecutive dividend increases.
- • Outstanding profitability metrics, including an EBITDA margin of 54.36% and steady historical earnings generation.
⚠ What to Watch
- • Valuation remains stretched with a TTM P/E of 22.67 and a current price of $275.03, which sits significantly above our monopoly fair value upper bound of $218.36.
- • The current dividend yield of 2.69% falls short of the optimal 3% minimum target for income-focused portfolios.
- • Structural regulatory headwinds, including mandatory fast-food wage councils (e.g., California's AB 1228) and NLRB joint-employer scrutiny, represent long-term threats to the capital-light franchise model's cost structure.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.