MCD FCF Yield Analysis
Updated 193h ago·SEC filings & market data
Key Takeaway
FCF Yield is the free cash flow a company produces divided by its stock price, so a current rate of 3.8% means MCD generates $3.80 in cash per $100 invested.
Sector Performance
45th percentileMCD
3.8%
Sector Median
4.2%
Sector Avg
7.2%
Prior Period
3.6%(Jul 2026)
Deep Analysis
FCF Yield is the free cash flow a company produces divided by its stock price, so a current rate of 3.8% means MCD generates $3.80 in cash per $100 invested.
This sits below the sector median of 4.2%, placing MCD in the 44th percentile among peers. The metric has been stable over the past eight quarters, with a year-over-year increase of +5.6% and a quarter-over-quarter increase of +5.6%. A below-median yield paired with a steady but slightly rising trend points to limited cash-return opportunity and no clear risk of deterioration. This metric supports the overall NEUTRAL verdict, as the FCF Yield is near the sector average and moving neither sharply higher nor lower.
Frequently Asked Questions
What does the FCF Yield tell investors about MCD?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are MCD's closest peers by FCF Yield?
The closest peers by FCF Yield include: BBWI (21.0%), COF (21.2%), CMCSA (21.5%), CHTR (21.6%), STT (21.6%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master MCD's Valuation
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View full MCD research report →MCD
3.8%
Sector Median
4.2%
Sector Avg
7.2%
How MCD's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.