MCDMcDonald's
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.1×).
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MCD?
McDonald's earns 27% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 18 points above what the capital costs: growth creates value
- Operating margin
- 46%
Operating margin · Restaurants median 7.8% · 12 months to Q2 2026
- Cash conversion
- 1.13×
Cash conversion · 1.03× a year ago · operating cash flow covers the operating profit after tax
| Year | Operating margin |
|---|---|
| FY2020 | 38% |
| FY2021 | 45% |
| FY2022 | 40% |
| FY2023 | 46% |
| FY2024 | 45% |
| FY2025 | 46% |
Details›
- Operating margin12 months to Q2 2026
- 46%
- Net margin12 months to Q2 2026
- 32%
- Free cash flow margin
- 28%
- Revenue, trailing twelve months
- $27.7B
- Free cash flow, trailing twelve months
- $7.76B
- Net income, trailing twelve months
- $8.79B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 27%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Restaurants
The closest names by size in the same industry