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Cash flow from operations refers to the cash brought in through a company's normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.
McDonald's (XSWX:MCD) Cash Flow from Operations Explanation
For companies reported in indirect method, cash flow from operations contains six items:
1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.
McDonald's's net income from continuing operations for the
three
months ended in Mar. 2026 was CHF1,561 Mil.
2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
The term depreciation is used when discussing man made tangible assets
The term depletion is used when discussing natural tangible assets
The term amortization is used when discussing intangible assets
McDonald's's depreciation, depletion and amortization for the
three
months ended in Mar. 2026 was CHF446 Mil.
3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.
McDonald's's change in working capital for the
three
months ended in Mar. 2026 was CHF-132 Mil. It means McDonald's's working capital
declined by CHF132 Mil
from Dec. 2025 to Mar. 2026 .
4. Deferred Tax:
It is the cash flow generated from deferred tax.
McDonald's's cash flow from deferred tax for the
three
months ended in Mar. 2026 was CHF50 Mil.
McDonald's's cash from discontinued operating Activities for the
three
months ended in Mar. 2026 was CHF0 Mil.
6. Asset Impairment Charge:
It is the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value.
McDonald's's asset impairment charge for the
three
months ended in Mar. 2026 was CHF0 Mil.
7. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.
McDonald's's stock based compensation for the
three
months ended in Mar. 2026 was CHF47 Mil.
8. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).
McDonald's's cash flow from others for the
three
months ended in Mar. 2026 was CHF-72 Mil.
McDonald's Cash Flow from Operations Related Terms
McDonald's Cash Flow from Operations Historical Data
* Premium members only.
The historical data trend for McDonald's's Cash Flow from Operations can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cash flow from operations refers to the cash brought in through a company's normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.
McDonald's's Cash Flow from Operations for the fiscal year that ended in Dec. 2025 is calculated as:
Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF8,402 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Cash Flow from Operations of CHF8,402 Mil mean?
McDonald's (XSWX:MCD) has a Cash Flow from Operations of CHF8,402 Mil as of Mar. 2026. Cash Flow from Operations is the amount of cash earned or paid from standard business operations. View historical data for McDonald's and its competitors.
Is McDonald's' Cash Flow from Operations too high?
McDonald's' current Cash Flow from Operations is CHF8,402 Mil. Overall, McDonald's has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does McDonald's' Cash Flow from Operations compare to SBUX and YUM?
McDonald's' Cash Flow from Operations of CHF8,402 Mil can be compared against companies in the Restaurants industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Flow from Operations for a Restaurants company?
A good Cash Flow from Operations depends on the Restaurants industry context. However, Cash Flow from Operations should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Flow from Operations mean?
A high Cash Flow from Operations can signal that a stock is expensive relative to its fundamentals. Cash Flow from Operations is the amount of cash earned or paid from standard business operations. View historical data for McDonald's and its competitors. McDonald's's current Cash Flow from Operations is CHF8,402 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDonald's stock overvalued right now?
McDonald's (XSWX:MCD) has a current Cash Flow from Operations of CHF8,402 Mil. The stock's GF Value™ is CHF267.66, compared to a current price of CHF219.35 — trading 18% below its estimated fair value. The current Cash Flow from Operations is CHF8,402 Mil. McDonald's' overall GF Score™ is 74/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Flow from Operations calculated?
Cash Flow from Operations is calculated from a company's financial statements. For McDonald's (XSWX:MCD), the current Cash Flow from Operations is CHF8,402 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is McDonald's (XSWX:MCD) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's stock appears to be undervalued.
The current stock price of CHF219.35 is trading 18% below its estimated GF Value™ of CHF267.66.
Key valuation signals for XSWX:MCD:
Cash Flow from Operations: CHF8,402 Mil
GF Value™: CHF267.66 vs. price of CHF219.35 (18% below fair value)
No single metric tells the full story. See the XSWX:MCD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McDonald's is the world's largest restaurant brand, with nearly $139 billion in systemwide sales across more than 45,000 restaurants and over 100 markets. The quick-service chain built its early reputation on speed, consistency, and affordable hamburgers, and today its global menu spans burgers, chicken, breakfast, and beverages that have helped popularize American fast-food cuisine worldwide. The firm derives the bulk of its revenue from franchise royalties and rent (about 62%), with the remainder stemming from company-operated restaurants across three segments: the United States (39% of systemwide sales), international operated markets (35%), and international developmental/licensed markets (26%).
74GF Score
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Cash Flow from Operations is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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