US Equities Analysis

MCD — McDonald's

Research evidence pack

Source-backed valuation visuals

Loading verified snapshot
Loading verified market, valuation, and statement data.

2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 44.25%
Profit Margins 31.62%
Return on Assets 13.56%
Free Float 0.71B
Dividend Yield 2.76%
Short Int % Utilisation 1.48%

2.2 Growth

Metric Value
Revenue Growth 9.4%
Free Cash Flow 5.95B
EBITDA 17.11 (Ratio)
Enterprise Value 254.46B
EV/Revenue 9.27
EV/EBITDA 17.11

Revenue growth of 9.4% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -8.14%
Risk / Std Dev (Ann.)* 18.00%
1-Year Price Return* -9.54%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $272.83
52-Week Range $260.96 – $341.75
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $26.89B
Prior annual revenue $25.92B
EBIT $12.48B
Tax rate 21.42%
NOPAT = EBIT × (1 − tax rate) $9.81B
Forecast start-growth basis 3.72%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $9.81B
Add: depreciation & amortisation $2.20B
Less: capital expenditure -$3.37B
Less/(add): working-capital cash-flow movement $106.00M
Current unlevered FCFF $8.75B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 3.72% $10.17B $2.28B -$3.49B $109.95M $9.07B $8.81B
2 3.42% $10.52B $2.36B -$3.30B $113.70M $9.69B $8.89B
3 3.11% $10.85B $2.43B -$3.08B $117.24M $10.32B $8.93B
4 2.81% $11.15B $2.50B -$2.83B $120.53M $10.94B $8.93B
5 2.50% $11.43B $2.56B -$2.56B $123.54M $11.55B $8.90B

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.42
Cost of equity 7.02%
Pre-tax cost of debt 2.96%
WACC 5.97%
WACC validation requires assumption review

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $341.49B
Implied terminal EV / EBITDA 19.96x
Terminal value as % of enterprise value 85.18%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $44.46B
Present value of terminal value $255.57B
Indicated enterprise value $300.03B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $300.03B
Less: gross interest-bearing debt $54.81B
Add: cash and equivalents $774.00M
Add: affiliate investments $0.00
Less: minority interests $0.00
Indicated common equity value $245.99B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 716,400,000.00
Share-count basis reported diluted weighted-average shares
Current market price $268.72
DCF indicative value per share $343.37
Indicative value vs. market price 27.78%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range review required
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% within review band

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 3/4 evidenced checks
Lynch-inspired balance-and-growth checks 3/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:41:19.935211 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

us-equity stock equity mcd consumer-discretionary restaurants nasdaq