McDonald's Corporation(MCD) - Stock detail

McDonald's Corporation

US
MCD
McDonald's Corporation(Listing date: 04/21/1965)

McDonald's Corporation is a company registered in Delaware. The company franchises and operates McDonald's restaurants, which offer locally relevant menus of quality food and beverages in communities across more than 100 countries. The company is primarily a franchisor and believes that franchising is crucial for delivering great-tasting food, locally relevant customer experiences, and driving profitability. Franchising enables individuals to become their own employers and maintain control over all employment-related matters, marketing, and pricing decisions, while also benefiting from the strength of McDonald's global brand, operating system, and financial resources. The company's revenues include sales from company-operated restaurants as well as fees from franchised restaurants operated by traditional franchisees, developmental licensees, and affiliates.

AI Rating

Rating methodology
Latest close (chg%)273.29-1.11%
Buy price
273.00
Target price305.00
Sell price268.90
P/E TTM22.48
P/E27.32
Confidence70%
Risk score65/100
AI Summary
The 'McDonald's NEXT' strategy is a significant growth catalyst announced when the stock is technically oversold, creating a high-probability setup for a re-rating. The downside is bounded by key support levels with a clear stop-loss, while the upside offers favorable risk/reward. High debt is viewed as a managed strategic choice for a cash-generative franchise model.

Alpha Score

0-10
  • Trend（Score 2/10）

    The technical picture for McDonald's Corporation (MCD) is overwhelmingly bearish, with the stock in a well-defined downtrend below all major moving averages, though oversold conditions suggest a potential short-term bounce.

  • Valuation（Score 4/10）

    Valuation metrics indicate a premium pricing. The TTM P/E is 22.48 and forward P/E is 27.32, reflecting market premium for stable cash flows. The P/S ratio is 7.07, typical for high-margin companies. The P/B ratio is negative due to negative book value and is not useful. The current price is near the bottom of its recent trading range, and a fundamental target price based on a P/E of 25x TTM EPS is approximately $299.

  • Financial strength（Score 3/10）
    Financial health shows strength in liquidity and profitability but significant concern in solvency due to extreme leverage. The company maintains adequate short-term liquidity with a Current Ratio of 1.14 and Quick Ratio of 1.12. However, the Debt-to-Asset Ratio of 102.14% indicates liabilities exceed assets, resulting in negative shareholder equity and high financial risk.
  • Profitability（Score 9/10）
    McDonald's demonstrates exceptional and stable profitability with strong revenue growth, industry-leading margins, and efficient asset utilization. Revenue grew 9.42% year-over-year in Q1 2026, and net income grew 6.16%. Gross margin consistently exceeds 55%, and net profit margin exceeds 30%, characteristic of its franchise-heavy model.
  • Sentiment（Score 8/10）
    McDonald's unveils comprehensive 'McDonald's > NEXT' growth strategy addressing product quality, store experience, automation, and marketing, likely catalyzing a positive reassessment of its medium to long-term growth trajectory.
Latest price
$273.29-1.11%
Market cap194.17B
P/E TTM22.48
P/E27.32
Volume5M
Turnover1.37B