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Upturn AI Summary - About
McDonald’s Corporation(MCD)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for MCD
10/02/2026: MCD (1-star) is currently NOT-A-BUY. Pass it for now.
McDonald’s is a global restaurant icon that operates primarily through a highly profitable franchise business model. Its main strengths include a massive real estate portfolio, an established brand, and successful digital initiatives that drive consistent, recurring revenue. The company’s core investment story centers on its ability to modernize its menu and operations to meet changing consumer habits while maintaining strong margins. However, investors must monitor risks related to rising operational costs, labor shortages, and competition from fast-casual alternatives. McDonald’s is a strong candidate for dividend-focused and value-oriented investors seeking a stable, defensive position in the consumer sector.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | The company offers steady growth rather than aggressive expansion characteristic of high-growth stocks. |
| Momentum investor | Mixed fit | Momentum is conditional on positive technical signals and strong quarterly performance updates. |
| Value investor | Strong fit | McDonald's often appeals to value investors seeking stable, established businesses with defensive qualities. |
| Dividend investor | Strong fit | The company’s consistent dividend growth and history make it a standard choice for income-focused portfolios. |
| Low-risk investor | Strong fit | As a global brand with a defensive business model, it is generally considered a lower-volatility option. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Low | The stock is generally less sensitive to market-wide swings compared to high-growth tech shares. |
| Valuation risk | Medium | The stock typically trades at a premium multiple, leaving limited room for error if growth slows. |
| Competition risk (fast-casual segment) | Medium / high | Changing consumer preferences towards premium, healthy options poses a constant threat. |
| Business quality | Strong | The franchise-heavy model provides predictable and high-quality revenue streams. |
| Dividend income | Low | The risk to the dividend is low due to strong and reliable free cash flow generation. |
| Execution risk | Medium | Maintaining operational consistency across thousands of global franchises is complex. |
Price Behavior
Downtrend
The stock has experienced a sustained decline in price over recent periods.
Smooth
The stock has moved along a generally orderly path with only modest fluctuations.
Analysis of Past Performance
Type Stock | Historic Profit 1.26% | Avg. Invested days 48 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/02/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 164.10B USD | Price to earnings Ratio 18.84 | 1Y Target Price 297.21 |
Price to earnings Ratio 18.84 | 1Y Target Price 297.21 | ||
Volume (30-day avg) 5.5M shares | Beta 0.41 | 52 Weeks Range 229.61 - 335.18 | Updated Date 10/02/2026 |
52 Weeks Range 229.61 - 335.18 | Updated Date 10/02/2026 | ||
Dividends yield (FY) 3.17% | Basic EPS (TTM) 12.31 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Franchised Restaurants | Royalty fees and rent collected from independent franchise operators. | This is the primary engine of profit, offering stable, recurring cash flows. |
| Company-Operated Restaurants | Revenue generated from directly owned and operated locations. | These help test innovations and maintain market presence. |
| Geography: U.S. Market | The domestic market providing significant revenue and brand stability. | The bedrock of company performance with high brand awareness. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE 18.84 | Forward PE 17.06 | Enterprise Value 267.99B | Price to Sales(TTM) 5.92 |
Enterprise Value 267.99B | Price to Sales(TTM) 5.92 | ||
Enterprise Value to Revenue 10.28 | Enterprise Value to EBITDA 18.81 | Shares Outstanding 707.64M | Shares Floating 706.58M |
Shares Outstanding 707.64M | Shares Floating 706.58M | ||
Percent Insiders 0.26 | Percent Institutions 76.34 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About McDonald’s Corporation
Exchange NYSE | Headquarters Chicago, IL, United States | ||
IPO Launch date 1965-04-21 | Chairman President, & CEO Mr. Christopher J. Kempczinski | ||
Sector Consumer Cyclical | Industry Restaurants | Full time employees 150000 | Website https://www.mcdonalds.com |
Full time employees 150000 | Website https://www.mcdonalds.com | ||
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, frozen 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.
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