McDonalds Corp.

McDonald's operates and franchises quick-service restaurants serving hamburgers, chicken, breakfast items, and beverages across 100+ countries. The company generates revenue primarily through a franchise model—95% of restaurants are franchised, with McDonald's collecting royalties (typically 4-5% of sales) plus rental income on properties it owns and leases to franchisees. This asset-light model produces high margins and predictable cash flows. McDonald's also earns from company-operated stores in strategic markets. The brand focuses on affordability, speed, consistency, and digital ordering through mobile apps and delivery partnerships.

McDonald's offers recession-resistant growth through value-oriented menu pricing and global scale that smaller competitors can't match. The franchise model generates returns on capital exceeding 40% and enables rapid digital/delivery expansion without heavy capex. Same-store sales growth is driven by menu innovation (chicken sandwiches, premium coffee), technology (mobile ordering, loyalty programs), and international expansion. Risks include wage inflation pressuring franchisee profitability, consumer health trends, and geopolitical exposure. MCD typically trades at 23-27x earnings with a 2%+ dividend yield.

In burgers, McDonald's competes with Restaurant Brands International (Burger King, Popeyes), Wendy's, and regional chains. Yum! Brands (Taco Bell, KFC, Pizza Hut) battles for quick-service share across categories. Starbucks overlaps in breakfast and coffee. Emerging threats include fast-casual chains like Chipotle and Shake Shack targeting quality-focused consumers. McDonald's scale (40,000+ locations) and real estate ownership create competitive moats that smaller rivals struggle to replicate in supply chain efficiency and marketing reach.

McDonald's has increased dividends for 47 consecutive years, qualifying as a Dividend Aristocrat. The current yield is approximately 2.3%, with payout growth averaging 7-8% annually. The franchise-driven business model generates consistent free cash flow that supports both dividends and $5-8 billion in annual share buybacks. McDonald's maintains a payout ratio around 55-60% of earnings, leaving room for continued growth even as the company returns substantially all free cash flow to shareholders through dividends and repurchases.

MCD last closed at $275.75, down 2.80% in the most recent trading session. Over the past 52 weeks, the stock has traded between a low of $283.47 and a high of $341.75. The current price represents 0% of its 52-week range, which helps investors gauge where the stock sits relative to its recent trading history.

Among 42 analysts covering MCD, the consensus rating is Buy — 24 rate it a buy, 16 hold, and 2 sell. The average price target sits at $387.45, implying 41% upside from the current price. Keep in mind that analyst targets reflect 12-month expectations and can shift quickly after earnings reports or major company events.

McDonalds Corp. generated $27.10B in revenue during fiscal year 2026, with $8.63B reaching the bottom line as net income. The net profit margin of 31.9% is strong by most industry standards.

MCD trades at a P/E ratio of 24.17 on trailing earnings of $11.95 per share. That's roughly in line with the broader market average of ~20-25x. Comparing this multiple against Hotels, Restaurants & Leisure sector peers gives better context than the broad market alone, since P/E norms vary significantly across industries.

Performance varies across timeframes, reflecting shifting market conditions. Returns by timeframe: -15.31% (3M), -7.81% (6M), -12.09% (1Y), -9.07% (YTD). Comparing these figures against the S&P 500 and sector benchmarks helps determine whether MCD is outperforming or lagging the broader market.