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McDonald's Corporation

MCD
54
Restaurants · Consumer Cyclical
Price
$242.97
+0.47 (+0.19%)
Market Cap
$171.94B
Winston Score
54
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Oct 18, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Strong
21/30
Growth
Mixed
9/20
Cash Flow
Exceptional
10/10
Stability
Mixed
3/10
Valuation
Strong
7/10
Ownership
Weak
1/15
Dividends
Good
3/5

54 of 100 counted points = Winston Score 54.

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Share count falling — buybacks

−4.7% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 751.8M (2021) → 716.4M (2025)

§Winston Score History

The full picture

McDonald's is one of the most recognized fast-food chains in the world, serving burgers, fries, chicken sandwiches, breakfast items, and drinks to everyday consumers. It operates roughly 40,000 locations across more than 100 countries, making it the largest fast-food restaurant chain by revenue. The company owns iconic brands like the Big Mac and Happy Meal, and its golden arches logo is among the most recognized symbols globally.

Most McDonald's locations are run by independent franchisees, who pay McDonald's fees and rent for the right to operate under its brand — this is how the company earns the majority of its revenue. That franchise model gives McDonald's unusually high profit margins compared to restaurants that own and operate every location themselves. The main growth driver going forward is digital ordering and its loyalty app, which helps bring customers back more often, while rising food and labor costs remain a persistent risk to franchisee profitability and consumer traffic.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+5.4% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

0.1%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$4.0B cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

McDonald's Corporation is growing revenue at 4% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
58.0%
Premium pricing power — 58.0% gross margin
Profit after running costs
Operating Margin
47.0%
Excellent — 47.0% operating margin
Return on the money invested
ROCE
8.6%
Below par — 8.6% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+6.3%
Slow sales growth (+6.3% YoY)
Profit growth
EPS YoY
+5.2%
Modest earnings growth (+5.2% YoY)

Single-digit earnings growth — steady but not exciting.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
120%
Turns 120% of profit into real cash
Spare cash per sale
FCF Margin
25.4%
Converts sales into free cash efficiently (25.4%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
—
Data not available
Covers its interest
Interest Cover
7.84x
Adequate interest coverage (7.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
19.7x
Fair value — P/E 19.7

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+3.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (19.7 → 16.1)

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Dividends

Dividend
Dividend Yield
3.26%
Moderate income — 3.26% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+4.7%
Dividend growing modestly (4.7% YoY)
Payout Ratio
59%
no trend
Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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