P/E Ratio
Updated 54h ago
Sector Performance
44th percentileMCD
22.2x
Sector Median
24.8x
Sector Avg
36.1x
Deep Analysis
The P/E ratio of 22.2x means investors pay $22.20 for every $1 of the company’s annual earnings, a common gauge of how expensive the stock is.
This is below the sector median of 24.8x, placing MCD in the 44th percentile among peers — meaning it is cheaper than about 56% of similar companies. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of -11.6% from 25.1x to 22.2x. A P/E below the sector median combined with a recent drop suggests the stock has become relatively less expensive, which could reduce valuation risk. However, the trend alone does not confirm a fundamental improvement, so the opportunity remains uncertain. This metric supports the overall neutral verdict by showing a moderate valuation that is neither overly expensive nor deeply discounted.
Frequently Asked Questions
What does the P/E Ratio tell investors about MCD?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
Who are MCD's closest peers by P/E Ratio?
The closest peers by P/E Ratio include: VICI (9.1x), OMF (9.0x), JACK (8.5x), GIS (8.4x), FIS (8.4x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
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22.2x
Sector Median
24.8x
Sector Avg
36.1x
How MCD's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.