# Mcdonald’s Corporation (MCD)

> McDonald’s sells meals and drinks through company-run restaurants and earns rent, royalties and fees from franchised and licensed restaurants.

- Exchange: New York Stock Exchange · Sector: Consumer Discretionary · Industry: Restaurants
- Headquarters: Chicago, Illinois
- Founded: 1940
- SEC CIK: 0000063908 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000063908))
- Full page: https://inspectstocks.com/stocks/mcd
- Data as of: price 2026-09-25; newest filing used 2026-08-07; latest fiscal period ended 2026-06-30

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $27.7B | $24.2B |
| Revenue growing recently | passed | $27.7B | $26.9B |
| Free cash flow positive | passed | $7.8B |  |
| Free cash flow growing overall | passed | $7.8B | $6.6B |
| Free cash flow growing recently | passed | $7.8B | $7.2B |

Business quality (the + / − mark): 5 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 31.7% |  |
| Healthy profit margin | passed | 31.7% |  |
| Strong operating margin | passed | 46.2% |  |
| Good return on equity | failed | -490.6% |  |
| Debt under control | passed | -32.77 |  |
| Turns sales into cash | passed | 28.0% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $27.7B |
| Net income, trailing twelve months | $8.8B |
| Free cash flow, trailing twelve months | $7.8B |
| Net margin | 31.7% |
| Operating margin | 46.2% |
| Return on equity | -490.6% |
| Debt to equity | -32.77 |
| Diluted EPS, trailing twelve months | $12.31 |
| Share price | $236.50 |
| Market value | $167.4B |
| Price / earnings | 19.2x |
| Price / sales | 6.0x |

## What the business does

McDonald’s serves food and drinks at restaurants it owns and runs, and through restaurants run by franchisees and licensees. For many conventional franchises, McDonald’s owns or leases the restaurant site and earns rent and royalties based partly on sales. Licensees generally provide the restaurant investment and pay royalties based on sales.

### How it makes money

- **International Operated Markets** (51.0%) — This reporting segment includes restaurant sales and fees from franchised restaurants in its markets. Conventional franchisees generally pay rent and royalties; company-run restaurants record sales from customers.
- **United States** (39.6%) — This reporting segment includes restaurant sales and fees from franchised restaurants in the United States. Conventional franchisees generally pay rent and royalties; company-run restaurants record sales from customers.
- **International Developmental Licensed Markets and Corporate** (9.4%) — This segment includes markets where licensees or affiliates operate restaurants, as well as corporate activities. Licensees generally pay royalties based on sales and may pay initial fees when a restaurant opens.

### Products

- **Core beef, chicken and beverage menu** — The main food and drink categories McDonald’s identifies as central to its menu.
- **McValue menu and Extra Value Meals** — Everyday value-priced menu choices and bundled meals sold at participating restaurants.
- **Beverage range** — A range that includes crafted sodas, refreshers, cold coffee and energy drinks.
- **McCrispy** — A chicken sandwich featured in market-specific menu promotions.
- **K-Pop Demon Hunters meal** — A limited-time promotional meal that restaurants prepared and promoted during the quarter discussed on the earnings call.

### Customers

- People buying meals and drinks at company-run and franchised restaurants, including at counters, drive-throughs, through digital ordering and through delivery.
- Franchisees, licensees and affiliates that operate restaurants and pay McDonald’s rent, royalties, fees or other contracted amounts.

### Competitors

- Burger King, a division of Restaurant Brands International (QSR) — Quick-service burgers, meals and restaurant locations.
- Wendy’s (WEN) — Quick-service burgers, chicken, meals and restaurant locations.
- Yum! Brands, including KFC and Taco Bell (YUM) — Quick-service meals, chicken, tacos and restaurant locations.
- Starbucks (SBUX) — Coffee, other drinks, food and customer visits during the day.

### What it depends on

- The business depends on franchisees and licensees operating restaurants and following McDonald’s standards; most of its restaurants are franchised.
- For conventional franchises, McDonald’s generally owns or secures a long-term lease on the restaurant site, making restaurant locations and property arrangements important to its revenue.
- Franchise fees depend in part on restaurant sales, so customer demand and the ability of local operators to run their restaurants affect the fees McDonald’s receives.

### What could go wrong

- If McDonald’s or its restaurant operators do not carry out the company’s strategies effectively, including changes to menus, digital services and restaurant operations, customer demand and financial results could be affected.
- Changes in customer preferences, perceptions of food or business practices, or the success of competitors’ pricing and promotions could reduce visits or weaken the appeal of the McDonald’s brand.
- Inconsistent execution by franchisees, including on value offers, service and restaurant operations, could affect customer experience, restaurant sales and the fees McDonald’s collects.

## More on this company

- [Overview](https://inspectstocks.com/stocks/mcd)
- [Financial statements](https://inspectstocks.com/stocks/mcd/financials)
- [Competitors](https://inspectstocks.com/stocks/mcd/peers)
- [Earnings](https://inspectstocks.com/stocks/mcd/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.