McDonald’s Corporation (MCD) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
McDonald’s Corporation stock (MCD) is currently trading at $308.85. McDonald’s Corporation PE ratio is 25.91. McDonald’s Corporation PS ratio (Price-to-Sales) is 8.20. Analyst consensus price target for MCD is $343.28. WallStSmart rates MCD as Underperform.
McDonald’s Corporation (MCD) stock price prediction for 2030: Base case $228.73. Bull case $285.91. Bear case $171.55. See full MCD 2030 price forecast and methodology on WallStSmart.
- MCD PE ratio analysis and historical PE chart
- MCD PS ratio (Price-to-Sales) history and trend
- MCD intrinsic value — DCF, Graham Number, EPV models
- MCD stock price prediction 2025 2026 2027 2028 2029 2030
- MCD fair value vs current price
- MCD insider transactions and insider buying
- Is MCD undervalued or overvalued?
- McDonald’s Corporation financial analysis — revenue, earnings, cash flow
- MCD Piotroski F-Score and Altman Z-Score
- MCD analyst price target and Smart Rating
McDonald’s Corporation
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MCD Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · McDonald’s Corporation (MCD)
MCD trades 30% above its Graham fair value of $237.45, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
McDonald’s Corporation (MCD) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, operating margin, profit margin. Concerns around price/sales and price/book. Fundamentals are solid but monitor weak areas for improvement.
McDonald’s Corporation (MCD) Key Strengths (4)
Mega-cap company, among the largest in the world
Keeps $45 of every $100 in revenue after operating costs
Keeps $32 of every $100 in revenue as net profit
75.61% of shares held by major funds and institutions
McDonald’s Corporation (MCD) Areas to Watch (5)
Very expensive at 8.2x annual revenue
Very expensive at 146.1x book value
Paying a premium for growth, expensive relative to earnings expansion
Modest revenue growth at 9.70%
Modest earnings growth at 8.20%
Supporting Valuation Data
McDonald’s Corporation (MCD) Detailed Analysis Report
Overall Assessment
This company scores 52/100 in our Smart Analysis, earning a C- grade. Out of 9 metrics analyzed, 4 register as strengths (avg 10.0/10) while 5 fall into concern territory (avg 3.2/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with Operating Margin at 45.10%, Profit Margin at 31.90%.
The Bear Case
The primary concerns are Price/Sales, Price/Book, PEG Ratio. Some valuation metrics including PEG Ratio (2.74), Price/Sales (8.20), Price/Book (146.07) suggest expensive pricing. Growth concerns include Revenue Growth at 9.70%, EPS Growth at 8.20%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Sales improves, as this is the primary drag on the overall score. Second, margin trajectory, with Operating Margin at 45.10% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 9.70% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Market Cap, Operating Margin) and negatives (Price/Sales, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
WallStSmart Analysis Synopsis
Data-driven financial summary for McDonald’s Corporation (MCD) · CONSUMER CYCLICAL › RESTAURANTS
The Big Picture
McDonald’s Corporation is a mature, profitable business with steady cash generation. Revenue reached 26.9B with 10% growth year-over-year. Profit margins are strong at 31.9%, reflecting pricing power and operational efficiency.
Key Findings
Profit margin of 31.9% and operating margin of 45.1% demonstrate strong pricing power and operational efficiency.
Generating 1.6B in free cash flow and 2.7B in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Debt management: total debt of 68.3B is significantly higher than cash (774M). Monitor refinancing risk.
Sector dynamics: monitor RESTAURANTS industry trends, competitive moves, and regulatory changes that could impact McDonald’s Corporation.
Bottom Line
McDonald’s Corporation is a well-established business delivering consistent profitability with 31.9% margins. The growth phase may be slowing, but strong cash generation and operational efficiency make it suitable for investors seeking reliability over excitement.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(126 last 3 months)
| Insider | Type | Shares |
|---|---|---|
RALLS-MORRISON, DESIREE EVP, Chief Legal Officer | Buy | +1,518.69 |
Data sourced from SEC Form 4 filings
Last updated: 8:32:37 AM
About McDonald’s Corporation(MCD)
NYSE
CONSUMER CYCLICAL
RESTAURANTS
USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.