McDonald's Corporation (MCD)

FairStock Score: 73/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At $235.81 on 2026-10-13, McDonald's trades at about 19 times earnings, a FairStock calculation. That is not a cigar butt, but it is a fine business. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $7.1B, net income $2.4B, and diluted EPS $3.32. In fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $6.8B, net income $2.3B, and diluted EPS $3.14. In fiscal year 2025, the year ended 2025-12-31, revenue was $26.9B, net income $8.6B, and diluted EPS $11.95, versus fiscal year 2024, the year ended 2024-12-31, with revenue of $25.9B, net income of $8.2B, and diluted EPS of $11.39. Growth is steady, not explosive. The franchise model and global brand give it pricing power and recurring cash. Trailing free cash flow is $7.8B, a 4.7% FCF yield, and the dividend yield is 3.27%. ROCE is 13.25%, Piotroski F-Score is 8/9, and Altman Z-Score is 3.63. These are signs of financial strength. The Lynch category is Stalwart: 12.6% annual profit growth and 7.0% revenue growth over five years. But PEG 3.11 and EV/EBITDA 14.64 suggest the market still asks a premium for that steadiness. The 52-week range is $229.20 to $341.75, so the stock sits near the low end. I prefer wonderful businesses at fair prices. McDonald's is wonderful; at this price it looks closer to fair than bargain. The key is whether single-digit growth and cash returns continue. If they do, patient owners may do okay; if growth slows, the multiple has little room for error.

In plain English: McDonald's sells burgers, fries, drinks, and other food through company-owned and franchised restaurants around the world. The business looks strong, with high profits, lots of cash, and a healthy financial score. At the recent price, the shares look roughly fair rather than cheap for its steady but not fast growth, and the dividend pays over 3%.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer