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McDonald’s Corporation
🇺🇸 MCD · NYSE/NASDAQ · US5801351017
Consumer
Scores
Key Metrics
Powered by EODHDP/E (TTM)
22.1
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.
Net Debt/EBITDA (TTM)
3.7x
Latest quarter: 16.1x
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.
Latest quarter (2026-06-30): 16.1x
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)
2.64%
TTM: 2.70%
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): 2.64%
Trailing Yield (TTM, last 12 months): 2.70%
Payout Ratio (Fwd)
59.3% TTM
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)
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 |
| Declared | Quarterly | 23 Jul 2026 | 01 Sep 2026 | 16 Sep 2026 | USD | 1.86 |
| 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 robust and the dividend is exceptionally reliable, current valuations remain elevated. Existing holders should maintain, but new buyers should wait for a better entry point or higher starting yield.
Sector Context
McDonald's operates in the consumer discretionary sector but acts largely as a consumer staple due to its low price points. Its massive, largely owned real estate footprint and highly franchised model insulate it heavily from direct operational cost shocks, making it a defensive DGI holding.
Temporary Opportunity Identified
Short-term consumer traffic pressures driven by macro inflation constraints on lower-income demographics, compounded by elevated input costs.
📊 Strategy Analysis
- • Exceptional competitive moat driven by a highly franchised capital-light business model and a vast global real estate portfolio.
- • Highly secure dividend profile with a 46.05% cash flow payout ratio and 1.49x FCF dividend coverage.
- • Sustained pricing power and operational efficiency evidenced by an outstanding 52.23% EBITDA margin.
- • Shareholder-friendly capital return policy, offering a total shareholder yield of 3.90% when including 1.20% net buybacks.
⚠ What to Watch
- • Valuation remains elevated with a TTM P/E of 22.15, offering a limited margin of safety relative to historical norms.
- • The current dividend yield of 2.70% falls short of the 3% minimum optimal target for income-focused portfolios.
- • Long-term structural regulatory headwinds, including mandatory fast-food wage councils (e.g., California's AB 1228) and global NLRB joint-employer scrutiny, threaten franchisee operating costs.
📊 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: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.