Is McDonald's Corporation (MCD) Undervalued? Valuation & Fair Price
At $248.24, 3 of the 4 frameworks would pass on McDonald's Corporation today — Warren Buffett, Benjamin Graham, and Phil Town (Rule #1) rate it Avoid and Peter Lynch rates it Hold. Each model calculates its own fair value and margin of safety; create a free account to see the exact buy price behind every verdict.
McDonald's Corporation
MCDConsumer Cyclical · Restaurants · NYSE
$248.24
P/E 22.3×
McDonald's Corporation operates and licenses its renowned fast-food chain worldwide, with a significant presence in both the United States and international markets. Their comprehensive menu offers classic items like hamburgers and cheeseburgers, a variety of chicken options including sandwiches and nuggets, alongside lighter choices such as wraps, french fries, and salads. For breakfast, patrons can select from offerings like biscuit and bagel sandwiches, breakfast burritos, and hotcakes. Additionally, the company provides oatmeal, an assortment of desserts including milkshakes, sundaes, and soft-serve ice cream, plus a selection of baked goods. A wide array of soft drinks, coffee, and other beverages completes their offering. By December 31, 2021, the corporation's global network encompassed 40,031 establishments. McDonald's Corporation, founded in 1940, has its main corporate office located in Chicago, Illinois.
Investor scorecard
How the four investors rate McDonald's Corporation
3 of 4 frameworks urge caution
Investor model analysis
Details lockedAt $248.24, 3 of 4 frameworks say Avoid
Intrinsic Value (DCF)
Warren Buffett's valuation model · select an investor above to switch
Intrinsic Value
Locked — upgrade to viewBuy Below
Locked — upgrade to viewStrong Buy
Locked — upgrade to viewMargin of Safety
Locked — upgrade to viewUnlock buy targets with a free account
Get startedCreate a free account to see buy targets, full checklists & risk analysis Get started
Insider & congress activity
Are insiders buying MCD?
Over recent SEC Form 4 filings, MCD insiders bought $0 and sold $25.6M of stock across 14 open-market trades. Insiders sell for many reasons, but they buy for one.
| Insider | Action | Shares | Value | Date |
|---|---|---|---|---|
| Erlinger Joseph M.President, McDonald's USA | Sell | 5,252 | $1.5M | Jun 10, 2026 |
| Ralls-Morrison DesireeEVP, Chief Legal Officer | Sell | 2,763 | $769K | May 28, 2026 |
| Erlinger Joseph M.President, McDonald's USA | Sell | 333 | $93K | May 26, 2026 |
| Erlinger Joseph M.President, McDonald's USA | Sell | 333 | $101K | Apr 23, 2026 |
| Erlinger Joseph M.President, McDonald's USA | Sell | 2,626 | $806K | Apr 10, 2026 |
Members of Congress have also reported 50 trades in MCD. See the full insider & congress timeline.
Source: SEC Form 4 filings. Open-market buys & sells only. Not investment advice.
See the interactive insider chart & every tradeScenario analysis
Bear, base & bull
Three growth assumptions, three fair values — and where today's price lands
What's working
Key strengths
Identified by Buffett framework analysis
Company financials
5-Year Financials
Income statement highlights — annual, USD
| Metric | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Revenue | $26.9B | $25.9B | $25.5B | $23.2B | $23.2B |
| Rev. Growth | +3.7% | +1.7% | +10.0% | -0.2% | — |
| Net Income | $8.6B | $8.2B | $8.5B | $6.2B | $7.5B |
| Net Margin | 31.9% | 31.7% | 33.2% | 26.6% | 32.5% |
| EPS (Diluted) | $12.00 | $11.45 | $11.63 | $8.39 | $10.11 |
| Free Cash Flow | Locked — upgrade to view | Locked — upgrade to view | Locked — upgrade to view | Locked — upgrade to view | Locked — upgrade to view |
Full analysis included
See the complete picture for MCD
Exact buy targets, margin of safety, detailed investor checklists, and risk breakdown — all frameworks, all numbers.
Free: 3 analyses/month · Pay per stock: $4.99 · Pro: $19.99/mo
More Consumer Cyclical stocks
Educational Use Only · Not Financial Advice
Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.