MCDMCD
US • —
$270.31
P/E
22.29
PEG
3.18
FCF Yield
—
Rev Growth YoY
+6.8% YoY
Gross Margin
57.4%
Health Score
6/10
D/E Ratio
3.40
Confidence
LOW
Business Snapshot
McDonald's Corporation is a global fast-food restaurant chain, generating the majority of its revenue from franchise royalties, rents, and fees, alongside company-operated restaurant sales. It operates in the highly competitive quick-service restaurant (QSR) market, holding a dominant global position as the largest fast-food chain by revenue, with a powerful brand and deeply entrenched franchise network. The company is a large-cap constituent with a widely recognised global footprint, though specific market capitalisation and trailing twelve-month revenue figures are not provided in this data set. A single defining characteristic is its highly capital-efficient, franchise-heavy business model, which generates stable, high-margin revenue streams with relatively low capital expenditure requirements.
Financial Health
Gross margin stands at 57.4%, though a prior year comparison is not available to assess direction; net margin (TTM) is a robust 31.6%, reflecting excellent profitability from its high-margin franchise model. The balance sheet is notably stretched, with a debt/equity ratio of 3.4x and a current ratio of 0.95x, indicating high leverage and an inability to cover short-term liabilities with current assets alone...
Risk Assessment
- DEBT / LIQUIDITY — Debt/equity of 3.4x is very high, and the current ratio of 0.95x indicates short-term liabilities exceed liquid assets, signalling significant financial leverage and potential liquidity pressure.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER SELLING — Insiders have executed 6 sells versus 0 buys over the last 90 days, a notable net-selling pattern that can signal a lack of confidence at the top.
- VALUATION DIVERGENCE — A DCF value could not be computed due to unavailable free cash flow data, preventing a comparison between market price and intrinsic value.
- EARNINGS QUALITY — While the company beat estimates in 3 of the last 4 quarters, this strong record does not present a current risk....
Gross margin stands at 57.4%, though a prior year comparison is not available to assess direction; net margin (TTM) is a robust 31.6%, reflecting excellent profitability from its high-margin franchise model. The balance sheet is notably stretched, with a debt/equity ratio of 3.4x and a current ratio of 0.95x, indicating high leverage and an inability to cover short-term liabilities with current assets alone. Return on equity is exceptionally high at 95.1%, a function of both strong earnings and significant leverage through debt. Free cash flow data is not available in this payload, preventing a direct assessment of cash generation. Overall, the company demonstrates strong profitability and capital returns potential, but the high debt burden introduces financial risk that could constrain flexibility during economic downturns.
- DEBT / LIQUIDITY — Debt/equity of 3.4x is very high, and the current ratio of 0.95x indicates short-term liabilities exceed liquid assets, signalling significant financial leverage and potential liquidity pressure. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER SELLING — Insiders have executed 6 sells versus 0 buys over the last 90 days, a notable net-selling pattern that can signal a lack of confidence at the top. - VALUATION DIVERGENCE — A DCF value could not be computed due to unavailable free cash flow data, preventing a comparison between market price and intrinsic value. - EARNINGS QUALITY — While the company beat estimates in 3 of the last 4 quarters, this strong record does not present a current risk.
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