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McDonald'sXSWX:MCD +0.62%74 Cash-to-Debt is 0.02 as of Mar. 2026, which is 67% below its 10-year median of 0.06. GuruFocus rates XSWX:MCD with a GF Score™ of 74/100 and a GF Value™ of CHF269.77. The stock has 2 warning signs investors should review. Among 358 Restaurants companies, McDonald's ranks worse than 94.97% on this metric.
Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. McDonald's's cash to debt ratio for the quarter that ended in Mar. 2026 was 0.02.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, McDonald'scouldn't pay off its debt using the cash in hand for the quarter that ended in Mar. 2026.
The historical rank and industry rank for McDonald's's Cash-to-Debt or its related term are showing as below:
XSWX:MCD'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.01 Med: 0.06 Max: 0.12
Current: 0.02
During the past 13 years, McDonald's's highest Cash to Debt Ratio was 0.12. The lowest was 0.01. And the median was 0.06.
XSWX:MCD's Cash-to-Debt is ranked worse than 94.97% of 358
companies
in the Restaurants industry
Industry Median: 0.41
vs XSWX:MCD: 0.02
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
McDonald's Cash-to-Debt Related Terms
McDonald's Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for McDonald's's Cash-to-Debt 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.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XSWX:MCD vs SBUX, YUM, CMG: Cash-to-Debt Comparison
For the Restaurants subindustry, McDonald's's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
McDonald's Cash-to-Debt vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where McDonald's's Cash-to-Debt falls into.
* 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.
McDonald's (XSWX:MCD) has a Cash-to-Debt of 0.02 as of Mar. 2026. This is 67% below median its historical median of 0.06. Over the past decade, McDonald's' Cash-to-Debt has ranged from 0.01 to 0.12. According to the industry distribution chart, McDonald's ranks #340 out of 358 companies in the Restaurants industry, placing it in the top 95%.
Is McDonald's' Cash-to-Debt too high?
McDonald's' current Cash-to-Debt of 0.02 is 67% below median its 10-year median of 0.06. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 0.12. The Restaurants industry median Cash-to-Debt is 0.41. McDonald's' value of 0.02 is 95.1% below this industry median. Based on the distribution chart, McDonald's ranks #340 out of 358 companies in the Restaurants industry, which is in the bottom quartile relative to peers. 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-to-Debt compare to SBUX and YUM?
According to the Restaurants industry distribution chart, McDonald's ranks #340 out of 358 companies for Cash-to-Debt. This places McDonald's in the lower half of its industry. The industry median Cash-to-Debt is 0.41. McDonald's' value of 0.02 is 95.1% below this benchmark. Historically, McDonald's' own Cash-to-Debt has ranged from 0.01 to 0.12 over the past decade. While the company's 10-year median is 0.06 vs. the industry median of 0.41, McDonald's has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash-to-Debt for a Restaurants company?
The median Cash-to-Debt among Restaurants companies is 0.41, based on 358 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current Cash-to-Debt of 0.02 is 95.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median Cash-to-Debt is 0.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current Cash-to-Debt is 0.02, which is 67% below median its own 10-year median of 0.06. 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-to-Debt of 0.02. The stock's GF Value™ is CHF269.77, compared to a current price of CHF218.50 — trading 19% below its estimated fair value. The current Cash-to-Debt is 0.02, which is 67% below median its 10-year median of 0.06 and 95.1% below the Restaurants industry median of 0.41. 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-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For McDonald's (XSWX:MCD), the current Cash-to-Debt is 0.02 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 CHF218.50 is trading 19% below its estimated GF Value™ of CHF269.77.
Key valuation signals for XSWX:MCD:
Cash-to-Debt: 0.02 (67% below median its 10-year median of 0.06)
GF Value™: CHF269.77 vs. price of CHF218.50 (19% below fair value)
Industry Position: 95.1% below the Restaurants median (#340 of 358)
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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