McDonald’s Corporation

MCDConsumer Cyclical

Sentinellis Health Score

6.3/10

Moderate concerns
Market Cap

$199.5B

Revenue

$26.9B

P/E Ratio

23.1x

AI Summary

McDonald's owns, operates, and franchises quick-service restaurants serving hamburgers, chicken sandwiches, fries, breakfast items, and beverages in over 100 countries [Yahoo Finance]. The company earns money two ways: it runs some restaurants directly, and it collects royalty fees and rent from independent franchise owners who operate most locations under the McDonald's brand [Yahoo Finance].

McDonald's Corporation operates over 40,000 restaurants worldwide under a franchise model, serving burgers, chicken, fries, and beverages [Yahoo Finance]. The company reported strong Q1 2026 results with U.S. same-store sales up 3.9%, driven by value meals under $3 and aggressive discounting to attract budget-conscious customers [Yahoo Finance]. However, management warns that low-income consumers are pulling back on fast-food spending due to inflation pressures, and company-owned restaurant margins remain under strain from higher labor costs [Yahoo Finance].

McDonald's is profitable with strong cash generation, but carries significant debt and faces margin pressure at company-owned stores.

Confidence8/10

Recent News

  • Assessing McDonald's (MCD) Valuation After Recent Share Price Weakness And Mixed Return Patterns

    Simply Wall St· 2026-05-20
  • McDonald's U.S. Comps Jump 3.9%: What's Driving Momentum?

    Yahoo Finance· 2026-05-19
  • 3 Dividend Stocks to Buy Right Now and Never Sell

    Nasdaq· 2026-05-18
  • Q1 Earnings Highs And Lows: McDonald's (NYSE:MCD) Vs The Rest Of The Traditional Fast Food Stocks

    Yahoo Finance· 2026-05-19
  • McDonald's Tests Brand Power With Nike Tie In And Spam McMuffin

    Simply Wall St· 2026-05-18
  • Amazon, McDonald Surge Into Jefferies Top Picks Broadcom as Gets Cut

    GuruFocus· 2026-05-19

Risk Analysis

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