NYSE · Consumer Cyclical

McDonald's Corporation

MCD · Restaurants

$284.46

▼ -2.18 (-0.76%)

Data cached · refreshes every 10 min

Mr. Market is currently offering McDonald's Corporation at $284.46.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 57.4%

Operating Margin 46.1%

Net Income Margin 31.9%

Fin. Health F

Years to Pay Off Debt 6.4 yrs

Working Capital vs Long-Term Debt -$40.2B

Working Capital -$198M

Valuation A

Price-to-Book -112.96x

Cash Flow B

Free Cash Flow $7.2B

CapEx % of Net Income 39.3%

Owner Earnings $14.1B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $202.2B

Enterprise Value $257.7B

P/E (TTM) 23.80

Dividend Yield 2.50%

Exchange NYSE

Key Margins

Gross Profit 57.4%

Operating Margin 46.1%

Net Margin 31.9%

Company Info

Sector Consumer Cyclical

Industry Restaurants

Employees 150000

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering McDonald's Corporation at $284.46.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About McDonald's Corporation

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.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022
Gross Profit %	57.4% ▲	56.8%	57.1%	57.0%
Operating Margin %	46.1% ▲	45.7%	46.1%	44.6%
Net Income %	31.9% ▲	31.7%	33.2%	26.6%
Diluted EPS	11.95 ▲	11.39	11.56	8.33

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$59.5B	$55.2B	$56.1B	$50.4B	N/A
Total Debt	$54.8B ↑	$51.9B	$53.1B	$48.7B	N/A
Working Capital	-$198M ▼	$738M	$1.1B	$1.6B	N/A
Years to Pay Debt	6.40	6.32	6.27	7.88	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$7.2B ▲	$6.7B	$7.3B	$5.5B	N/A
Owner Earnings	$14.1B	$13.1B	$12.8B	$9.9B	N/A
CapEx % of Net Income	39.3%	33.7%	27.8%	30.7%	N/A

Income Statement

	2025	2024	2023	2022
Tax Effect Of Unusual Items	-49,906	-62,123	-45,435	-201,083
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	14,911,000	14,251,000	14,094,000	11,856,000
Total Unusual Items	-233,000	-303,000	-233,000	-953,000
Total Unusual Items Excluding Goodwill	-233,000	-303,000	-233,000	-953,000
Net Income From Continuing Operation Net Minority Interest	8,563,000	8,223,000	8,469,000	6,177,000
Reconciled Depreciation	2,199,000	2,097,000	1,978,000	1,871,000
Reconciled Cost Of Revenue	9,709,000	9,560,000	9,335,000	8,474,000
EBITDA	14,678,000	13,948,000	13,861,000	10,903,000
EBIT	12,479,000	11,851,000	11,883,000	9,032,000
Net Interest Income	-1,500,000	-1,403,000	-1,174,000	-1,163,000
Interest Expense	1,582,000	1,506,000	1,361,000	1,207,000
Interest Income	82,000	103,000	187,000	44,000
Normalized Income	8,746,094	8,463,877	8,656,565	6,928,917
Net Income From Continuing And Discontinued Operation	8,563,000	8,223,000	8,469,000	6,177,000
Total Expenses	14,491,000	14,069,000	13,748,000	12,837,000
Rent Expense Supplemental	4,976,000	4,917,000	4,774,000	4,376,000
Total Operating Income As Reported	12,393,000	11,712,000	11,647,000	9,371,000
Diluted Average Shares	716,400	721,900	732,300	741,300
Basic Average Shares	713,400	715,200	722,700	731,300
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	8,563,000	8,223,000	8,469,000	6,177,000
Net Income Common Stockholders	8,563,000	8,223,000	8,469,000	6,177,000
Net Income	8,563,000	8,223,000	8,469,000	6,177,000
Net Income Including Noncontrolling Interests	8,563,000	8,224,000	8,469,000	6,177,000
Net Income Continuous Operations	8,563,000	8,224,000	8,469,000	6,177,000
Tax Provision	2,334,000	2,121,000	2,053,000	1,648,000
Pretax Income	10,897,000	10,345,000	10,522,000	7,825,000
Other Income Expense	2,000	-104,000	-49,000	-1,357,000
Other Non Operating Income Expenses	45,000	42,000	31,000	-517,000
Special Income Charges	-193,000	-297,000	-252,000	-1,087,000
Gain On Sale Of Ppe	-97,000	-100,000	7,000	-137,000
Gain On Sale Of Business	133,000	94,000	103,000	60,000
Write Off	229,000	291,000	362,000	1,010,000
Restructuring And Mergern Acquisition		221,000
Earnings From Equity Interest	190,000	157,000	153,000	113,000
Gain On Sale Of Security	-40,000	-6,000	19,000	134,000
Net Non Operating Interest Income Expense	-1,500,000	-1,403,000	-1,174,000	-1,163,000
Interest Expense Non Operating	1,582,000	1,506,000	1,361,000	1,207,000
Interest Income Non Operating	82,000	103,000	187,000	44,000
Operating Income	12,394,000	11,851,000	11,747,000	10,345,000
Operating Expense	3,040,000	2,859,000	2,817,000	2,862,000
Depreciation Amortization Depletion Income Statement	457,000	447,000	382,000	370,000
Depreciation And Amortization In Income Statement	457,000	447,000	382,000	370,000
Selling General And Administration	2,583,000	2,412,000	2,435,000	2,492,000
Gross Profit	15,434,000	14,710,000	14,564,000	13,207,000
Cost Of Revenue	11,451,000	11,210,000	10,931,000	9,975,000
Total Revenue	26,885,000	25,920,000	25,495,000	23,182,000
Operating Revenue	26,238,000	25,497,000	25,179,000	22,854,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	950,000	945,400	937,900	929,300
Ordinary Shares Number	710,600	715,200	722,700	731,300
Share Issued	1,660,600	1,660,600	1,660,600	1,660,600
Net Debt	39,199,000	37,339,000	34,766,000	33,319,700
Total Debt	54,814,000	51,948,000	53,091,000	48,699,000
Tangible Book Value	-5,144,000	-6,941,000	-7,746,000	-8,903,800
Invested Capital	38,183,000	34,628,000	34,639,000	29,900,100
Working Capital	-198,000	738,000	1,127,000	1,622,100
Net Tangible Assets	-5,144,000	-6,941,000	-7,746,000	-8,903,800
Capital Lease Obligations	14,841,000	13,524,000	13,746,000	12,795,500
Common Stock Equity	-1,790,000	-3,796,000	-4,706,000	-6,003,400
Total Capitalization	38,183,000	34,628,000	32,447,000	29,900,100
Total Equity Gross Minority Interest	-1,791,000	-3,797,000	-4,707,000	-6,003,400
Stockholders Equity	-1,790,000	-3,796,000	-4,706,000	-6,003,400
Gains Losses Not Affecting Retained Earnings	-2,414,000	-2,553,000	-2,456,000	-2,486,600
Other Equity Adjustments	-2,414,000	-2,553,000	-2,456,000	-2,486,600
Treasury Stock	79,316,000	77,375,000	74,640,000	71,624,400
Retained Earnings	70,282,000	66,834,000	63,480,000	59,543,900
Additional Paid In Capital	9,641,000	9,281,000	8,893,000	8,547,100
Capital Stock	17,000	17,000	17,000	16,600
Common Stock	17,000	17,000	17,000	16,600
Total Liabilities Net Minority Interest	61,306,000	58,979,000	60,854,000	56,439,000
Total Non Current Liabilities Net Minority Interest	56,945,000	55,118,000	53,995,000	52,636,900
Other Non Current Liabilities	703,000	770,000	950,000	1,051,800
Tradeand Other Payables Non Current	139,000	344,000	363,000	791,900
Non Current Deferred Liabilities	1,983,000	2,692,000	2,471,000	2,755,300
Non Current Deferred Revenue	945,000	778,000	790,000	757,800
Non Current Deferred Taxes Liabilities	1,038,000	1,914,000	1,681,000	1,997,500
Long Term Debt And Capital Lease Obligation	54,120,000	51,312,000	50,211,000	48,037,900
Long Term Capital Lease Obligation	14,147,000	12,888,000	13,058,000	12,134,400
Long Term Debt	39,973,000	38,424,000	37,153,000	35,903,500
Current Liabilities	4,361,000	3,861,000	6,859,000	3,802,100
Current Debt And Capital Lease Obligation	694,000	636,000	2,880,000	661,100
Current Capital Lease Obligation	694,000	636,000	688,000	661,100
Current Debt			2,192,000
Other Current Borrowings			2,192,000
Payables And Accrued Expenses	3,667,000	3,225,000	3,979,000	3,141,000
Current Accrued Expenses	2,021,000	1,611,000	1,903,000	1,630,800
Interest Payable	533,000	482,000	469,000	393,400
Payables	1,646,000	1,614,000	2,076,000	1,510,200
Total Tax Payable	497,000	585,000	973,000	530,000
Income Tax Payable	250,000	361,000	705,000	274,900
Accounts Payable	1,149,000	1,029,000	1,103,000	980,200
Total Assets	59,515,000	55,182,000	56,147,000	50,435,600
Total Non Current Assets	55,352,000	50,584,000	48,159,000	45,011,400
Other Non Current Assets	6,331,000	6,095,000	5,618,000	4,707,200
Investments And Advances	2,820,000	2,710,000	1,080,000	1,064,500
Long Term Equity Investment	2,820,000	2,710,000	1,080,000	1,064,500
Investmentsin Associatesat Cost				1,064,500	1,201,200
Goodwill And Other Intangible Assets	3,354,000	3,145,000	3,040,000	2,900,400
Goodwill	3,354,000	3,145,000	3,040,000	2,900,400
Net PPE	42,847,000	38,634,000	38,421,000	36,339,300
Accumulated Depreciation	-21,049,000	-18,882,000	-18,662,000	-17,264,000
Gross PPE	63,896,000	57,516,000	57,083,000	53,603,300
Other Properties	18,019,000	16,359,000	16,621,000	15,490,800
Machinery Furniture Equipment				2,498,600	3,032,000
Buildings And Improvements	37,708,000	33,904,000	33,381,000	31,426,200
Land And Improvements	8,169,000	7,253,000	7,081,000	6,686,300
Current Assets	4,163,000	4,599,000	7,986,000	5,424,200
Other Current Assets	862,000	1,075,000	866,000	673,400
Prepaid Assets					511,300
Inventory	61,000	56,000	53,000	52,000
Receivables	2,466,000	2,383,000	2,488,000	2,115,000
Accounts Receivable	2,466,000	2,383,000	2,488,000	2,115,000
Cash Cash Equivalents And Short Term Investments	774,000	1,085,000	4,579,000	2,583,800
Cash And Cash Equivalents	774,000	1,085,000	4,579,000	2,583,800

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	7,186,000	6,672,000	7,255,000	5,488,000
Repurchase Of Capital Stock	-2,056,000	-2,824,000	-3,054,000	-3,896,000
Repayment Of Debt	-4,802,000	-2,777,000	-2,441,000	-2,202,000
Issuance Of Debt	4,724,000	2,380,000	5,221,000	3,374,000
Capital Expenditure	-3,365,000	-2,775,000	-2,357,000	-1,899,000
Interest Paid Supplemental Data	1,555,000	1,523,000	1,287,000	1,184,000
Income Tax Paid Supplemental Data		2,974,000	2,992,900	3,024,000	2,403,900
End Cash Position	774,000	1,085,000	4,579,000	2,584,000
Beginning Cash Position	1,085,000	4,579,000	2,584,000	4,709,000
Effect Of Exchange Rate Changes	86,000	-101,000	-58,000	-254,000
Changes In Cash	-397,000	-3,393,000	2,053,000	-1,871,000
Financing Cash Flow	-7,125,000	-7,495,000	-4,374,000	-6,580,000
Cash Flow From Continuing Financing Activities	-7,125,000	-7,493,000	-4,374,000	-6,580,000
Net Other Financing Charges	-167,000	-58,000	-40,000	38,000
Proceeds From Stock Option Exercised	285,000	328,000	260,000	248,000
Cash Dividends Paid	-5,115,000	-4,870,000	-4,533,000	-4,168,000
Common Stock Dividend Paid	-5,115,000	-4,870,000	-4,533,000	-4,168,000
Net Common Stock Issuance	-2,056,000	-2,824,000	-3,054,000	-3,896,000
Common Stock Payments	-2,056,000	-2,824,000	-3,054,000	-3,896,000
Net Issuance Payments Of Debt	-72,000	-71,000	2,993,000	1,198,000
Net Short Term Debt Issuance	6,000	326,000	213,000	26,000
Net Long Term Debt Issuance	-78,000	-397,000	2,780,000	1,172,000
Long Term Debt Payments	-4,802,000	-2,777,000	-2,441,000	-2,202,000
Long Term Debt Issuance	4,724,000	2,380,000	5,221,000	3,374,000
Investing Cash Flow	-3,822,000	-5,346,000	-3,185,000	-2,678,000
Cash Flow From Continuing Investing Activities	-3,822,000	-5,346,000	-3,184,000	-2,678,000
Net Other Investing Changes	-579,000	-498,000	-677,000	-457,000
Net Business Purchase And Sale	-8,000	-2,195,000	-246,000	-361,000
Sale Of Business	346,000	311,000	195,000	446,000
Purchase Of Business	-354,000	-2,506,000	-441,000	-807,000
Net PPE Purchase And Sale	130,000	122,000	95,000	39,000
Sale Of PPE	130,000	122,000	95,000	39,000
Capital Expenditure Reported	-3,365,000	-2,775,000	-2,357,000	-1,899,000
Operating Cash Flow	10,551,000	9,447,000	9,612,000	7,387,000
Cash Flow From Continuing Operating Activities	10,551,000	9,446,000	9,612,000	7,387,000
Change In Working Capital	106,000	-438,000	-108,000	-645,000
Change In Other Working Capital			-220,300	-546,700	-302,500
Change In Payables And Accrued Expense	15,000	-519,000	36,000	-387,000
Change In Accrued Expense	154,000	-217,000	206,000	129,000
Change In Payable	-139,000	-302,000	-170,000	-516,000
Change In Account Payable	100,000	-10,000	50,000	31,000
Change In Tax Payable	-239,000	-292,000	-220,000	-547,000
Change In Income Tax Payable	-239,000	-292,000	-220,000	-547,000
Change In Inventory	-140,000	71,000	17,000	6,000
Change In Receivables	231,000	10,000	-161,000	-264,000
Changes In Account Receivables	231,000	10,000	-161,000	-264,000
Other Non Cash Items	-207,000	4,000	-113,000	-570,000
Stock Based Compensation	165,000	172,000	175,000	167,000
Deferred Tax	-126,000	-574,000	-686,000	-346,000
Deferred Income Tax	-126,000	-574,000	-686,000	-346,000
Depreciation Amortization Depletion	2,199,000	2,097,000	1,978,000	1,871,000
Depreciation And Amortization	2,199,000	2,097,000	1,978,000	1,871,000
Operating Gains Losses	-149,000	-37,000	-103,000	733,000
Gain Loss On Sale Of Business	-149,000	-37,000	-103,000	733,000
Net Income From Continuing Operations	8,563,000	8,223,000	8,469,000	6,177,000

These metrics estimate what McDonald's Corporation is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

N/A

Margin of Safety

—

Market Cap ÷ Company Value

-21.32

P/B Ratio

-112.96

Warren's Owner Earnings

$14.1B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$26.9B

vs > $1.5B revenue

❌ Strong Financial Condition

0.95x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

2.50%

vs Uninterrupted dividends

✅ Earnings Growth

+43.5% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

23.8x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

N/A (negative book value)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-80.39

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

N/A

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	39.3%	33.7%	27.8%	30.7%	N/A
Repurchase of Capital Stock	-$2.1B	-$2.8B	-$3.1B	-$3.9B	N/A
Free Cash Flow	$7.2B ▲	$6.7B ▼	$7.3B ▲	$5.5B •	N/A •
Warren's Owner Earnings	$14.1B	$13.1B	$12.8B	$9.9B	N/A

Peers & Industry Comparison

Restaurants — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
MCD	$284.46	$202.2B	23.80	57.4%	31.9%	$26.9B
SBUX Starbucks Corporation	$104.98	$119.6B	80.1	21.9%	3.9%	$38.5B
YUM Yum! Brands, Inc.	$154.06	$42.6B	24.8	45.7%	20.5%	$8.5B
QSR Restaurant Brands International	$80.06	$36.6B	30.4	33.8%	8.2%	$9.4B
DPZ Domino's Pizza Inc	$330.38	$11.0B	19.0	28.7%	11.9%	$5.0B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.28%

Low — management has little skin in the game

Return on Assets (ROA)

14.4%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$2.1B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+5.5% YoY

Debt is roughly stable

Leadership Team

Christopher Kempczinski

Chairman President, & CEO

Age 56

Pay: $4,574,244

0.053% of net income

Ian Frederick Borden CPA

Executive VP & Global CFO

Age 56

Pay: $3,089,533

0.036% of net income

Gillian McDonald

Executive Vice President & Global Chief Restaurant Experience Officer

Age 59

Pay: $2,311,602

0.027% of net income

Joseph Erlinger

EVP & President of McDonald's USA

Age 51

Pay: $1,726,311

0.020% of net income

Manuel Steijaert

Executive VP & President of International Operated Markets

Age 54

Pay: $2,228,267

0.026% of net income

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	10.18%	72,351,127
Blackrock Inc.	7.53%	53,511,996
State Street Corporation	5.06%	35,983,997
JPMORGAN CHASE & CO	4.47%	31,782,233
Geode Capital Management, LLC	2.40%	17,038,519
Morgan Stanley	2.15%	15,270,740
Bank of America Corporation	1.75%	12,419,778
NORGES BANK	1.33%	9,457,311

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.44

Low volatility — more stable than the market

Short Interest

1.3% of float

Low short interest — market is not heavily bearish

Current Ratio