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McDonald's Corporation
Dow 30 S&P 500
$203.1B
Market Cap
25.6
P/E
3.46
PEG
18.0%
ROCE
-306.5%
ROE
-30.22
D/E
46.1%
OPM
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🌏 Global Investor Returns
Currency-adjusted total returns for MCD including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

McDonald's Corporation owns, operates, and franchises restaurants under the McDonald’s brand in the United States and internationally.

Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding MCD
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Manager Shares Value % of Fund Period
Andreas Halvorsen Viking Global Investors 3.63M $1.1B 3.15% Mar 2026
Jim Simons Renaissance Technologies LLC 542.8K $168.7M 0.26% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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Good quarter Investor Presentation One-Pager? Q1 2026
Revenue
$6.5B
+9% YoY
Operating Income
$3.0B
+12% YoY
Operating Margin
46.0%
Not disclosed
Net Income
$2.0B
+6% YoY
What Went Right
  • Global comparable sales grew 3.8% with solid growth across all segments (U.S. +3.9%, IOM +3.9%, IDL +3.4%)
  • Market share gained in nearly all top 10 markets, including a third consecutive quarter of gains in Australia
  • U.S. value initiatives (McValue EDAP menu, meal deals) drove traffic and improved value perception
What to Watch
  • U.S. company-operated margins were not acceptable; management is evaluating ownership balance
  • April comp sales slightly negative in U.S. and IOM due to lapping Minecraft promotion, leading to Q2 deceleration
  • Franchisee cash flow under pressure from inflation (especially beef and energy); consumer environment remains challenging
Management Guidance
  • Q2: U.S. and IOM comp sales to decelerate meaningfully from Q1's 3.9% on a tough April comp; two-year stack to accelerate
  • Q2: IDL comp sales growth expected to decelerate from Q1's 3.4% due to Middle East volatility
  • Full-year 2026 financial targets reaffirmed; foreign currency tailwind of $0.20-$0.30 per share
Investor Lens
The thesis remains intact: McDonald's is executing well on value, marketing, and innovation, gaining share even in a tough environment. However, pressure on franchisee profitability and unacceptable U.S. company margins warrant close monitoring. Global development pipeline remains strong, but cost inflation and supply chain disruption are key risks. The beverage launch and upcoming FIFA partnership provide near-term catalysts.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Solid quarter with 3.8% comp growth, but U.S. company margins a concern
Revenue
Consolidated revenues were $6.5B, up 9% YoY (4% in constant currencies). Global systemwide sales grew 11% (6% in constant currencies) to over $34B. Segment performance: U.S., IOM, and IDL all contributed positively.
Profitability
Net income was $1.98B, up 6% YoY (1% constant currency). GAAP diluted EPS was $2.78, adjusted EPS $2.83 (up 6% and 1% constant currency respectively). Adjusted operating margin was 46%.
Margins
Adjusted operating margin of 46% reflects resilient business model. However, U.S. company-operated margins were called out as not acceptable. IOM segment saw margin growth despite higher inflation. Restaurant margins generated over $3.6B in the quarter.
Balance Sheet
Not discussed.
Key Risks
Management flagged: (1) U.S. company-operated margins are unacceptable and may lead to refranchising; (2) franchisee cash flow under pressure from beef and energy inflation; (3) volatile Middle East conditions impacting IDL, and potential for higher cost inflation from supply chain disruptions.
Outlook
Full-year 2026 financial targets reaffirmed. Q2 comparable sales expected to decelerate meaningfully in U.S. and IOM due to a difficult April comp, but two-year stacks should accelerate. Foreign currency expected to be a full-year tailwind of $0.20-$0.30 per share.
Generated by AI · Q1 2026 results · Not investment advice
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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