NYSE · Consumer Cyclical · Restaurants · USA
McDonald's Corp is a large cap company (market value between $10 billion and $200 billion) in the Restaurants industry.
McDonald's Corp franchises and owns and operates restaurants serving food and beverages across multiple countries. The vast majority of its restaurants are franchised under conventional franchise, developmental license, or affiliate structures. The company generates revenue through restaurant sales, franchise fees based on sales percentages, rent, and licensing arrangements.
From its FY2025 annual report (Form 10-K)
Intrinsic value, DCF valuation, financial health and value investing analysis for the McDonald's Corp stock.
Slightly overvalued: intrinsic value $203.92 per share, market price $242.67, margin of safety -19.0% (as of 2026-10-19).
Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $203.92; the price of $242.67 is 19% above that value, and 81% of that value comes from beyond year five.
Leak Score: 62/100 on 10 of 12 signals (Faint Leak).
17 more funds hold it; the full list is part of the paid plan.
14 more in this industry show a wider margin of safety.
MCD is slightly overvalued (as of the 2026-10-19 close). Discounting its cash flows at 7.5% (average of 3 methods) values the shares at $203.92; the price of $242.67 is 19% above that value, and 81% of that value comes from beyond year five.
$203.92 per share (as of the 2026-10-19 close), against a market price of $242.67. That is a margin of safety of -19.0%. The value is the average of the valuation methods that apply to this company, recomputed every night after the US close.
The price asks for roughly the growth the company has already delivered. No miracle needed, no discount either. Yearly sales growth the price needs: 8.5%. Yearly sales growth it has sustained: 3.7%.
62 out of 100, which we rate "Faint Leak", on 10 of 12 value investing signals.