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McDonald's Corporation (MCDS) Fair Value & Analysis

Consumer Cyclical · CA · Market cap C$278B

MS McDonald's Corporation MCDS · NEO
PriceC$24.01
Fair ValueC$10.84
Upside-54.9%
Quality64/100
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Evidence: High Range C$6.82 – C$16.16

Fair value as of: Jul 17, 2026

From 21 valuation models · updated today

Share price +3.3% over the past month.

Price vs Fair Value (12 months)

C$28.63 C$23.07 Fair Value C$10.84 Jun 2025 Jun 2026

12‑month range C$23.07 – C$28.63 · fair‑value band C$6.82 – C$16.16 · the C$24.01 price screens above the C$10.84 fair value. As of Jul 17, 2026.

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Analysis

McDonald's Corporation (MCDS) currently trades at C$24.01, while our model-based Fair Value estimate is C$10.84, implying the stock looks roughly 54.9% overvalued today. We read business quality at 64/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, McDonald's Corporation generated revenue of C$26.3B at a net margin of 32.0%. Revenue grew 3.0% year over year. Net debt stands at C$39.2B. The stock trades on a trailing P/E of 23.3. Fundamentals as of Jul 17, 2026

Our scenario range runs from C$6.82 (bear case) to C$16.16 (bull case); at C$24.01, the current price sits above that range. The share trades about 16% below its 52-week high and 5% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -40% fair-value upside, at -55%, MCDS screens richer than that median.

Key figures & financial health

Revenue (TTM) C$26.3B
Revenue growth (YoY) +3.0%
Net margin 32.0%
Free cash flow C$7.2B FY2025
P/E ratio 23.3
Operating margin 46.9%
More key figures
EPS (TTM) C$1.03
EPS growth (YoY) +1.6%
Net debt C$39.2B FY2025

Figures from reported company fundamentals (EODHD) · as of Jul 17, 2026. TTM = trailing twelve months.

About the company

McDonald's Corporation owns, operates, and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, soft serve cones, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates franchised restaurants under various structures, including conventional franchise, developmental license, or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago, Illinois.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

McDonald's Corporation reported revenue of C$26.9B in FY2025 versus C$23.2B in FY2021, a compound +3.7%/yr. Reported net income was C$8.6B in FY2025, compounding +3.2%/yr from FY2021.

Revenue +3.7%/yr
FY21 C$23.2B
FY22 C$23.2B
FY23 C$25.5B
FY24 C$25.9B
FY25 C$26.9B
Net income +3.2%/yr
FY21 C$7.5B
FY22 C$6.2B
FY23 C$8.5B
FY24 C$8.2B
FY25 C$8.6B

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Cite: Fair Value Calculator (2026). "McDonald's Corporation Fair Value". https://www.fairvalue-calculator.com/stock/MCDS

Similar stocks

10 more Restaurants stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Compass Group CPG $0.3198 $0.1800 -44%
Starbucks Corporation SBUX C$27.68 C$7.44 -73%
Chipotle Mexican Grill, Inc CMG $28.18 $14.95 -47%
Yum! Brands, Inc YUM $150.74 $59.42 -61%
Restaurant Brands International Inc QSR C$101.34 C$60.84 -40%
Restaurant Brands International Limited RSTRF $77.57 $49.50 -36%
Darden Restaurants, Inc D1RI34 R$265.92 R$41.43 -84%
Yum China Holdings YUMC $42.88 $41.58 -3%
Texas Roadhouse, Inc TXRH $170.46 $101.50 -40%
Domino's Pizza, Inc D2PZ34 R$31.59 R$19.12 -39%

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Frequently asked questions

Is McDonald's Corporation (MCDS) undervalued?
As of Jul 17, 2026, our model estimates a fair value of C$10.84 versus a price of C$24.01, about −55% (overvalued). Model-based estimate, not financial advice.
What is the fair value of MCDS?
Our model-based fair value for McDonald's Corporation is C$10.84 (as of Jul 17, 2026), built from audited fundamentals. The current price is C$24.01.
What is the quality score of MCDS?
McDonald's Corporation has a Quality Score of 64/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of McDonald's Corporation (MCDS)?
McDonald's Corporation reported trailing-twelve-month revenue of about C$26.3B (latest available figure, as of Jul 17, 2026).
What is the net profit margin of MCDS?
The net profit margin of McDonald's Corporation is about 32.0%, meaning it keeps roughly 32.0% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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Not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.