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McDonald'sMCD -0.85%74 Debt-to-Equity is -42.71 as of Mar. 2026. GuruFocus rates MCD with a GF Score™ of 74/100 and a GF Value™ of $326.81 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 317 Restaurants companies, McDonald's ranks worse than 315457.1% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for McDonald's's Debt-to-Equity or its related term are showing as below:
MCD'
s Debt-to-Equity Range Over the Past 10 Years
Min: -42.71 Med: -8.54 Max: 40.64
Current: -42.71
During the past 13 years, the highest Debt-to-Equity Ratio of McDonald's was 40.64. The lowest was -42.71. And the median was -8.54.
MCD's Debt-to-Equity is not ranked
in the Restaurants industry.
Industry Median: 0.91
vs MCD: -42.71
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
McDonald's Debt-to-Equity Related Terms
McDonald's Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for McDonald's's Debt-to-Equity 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.
For the Restaurants subindustry, McDonald's's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where McDonald's's Debt-to-Equity 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 (MCD) has a Debt-to-Equity of -42.71 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on McDonald's and its competitors. According to the industry distribution chart, McDonald's ranks #999999 out of 317 companies in the Restaurants industry.
Is McDonald's' Debt-to-Equity too high?
McDonald's' current Debt-to-Equity is -42.71. Based on the distribution chart, McDonald's ranks #999999 out of 317 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, McDonald's has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does McDonald's' Debt-to-Equity compare to SBUX and YUM?
According to the Restaurants industry distribution chart, McDonald's ranks #999999 out of 317 companies for Debt-to-Equity. This places McDonald's in the lower half of its industry. The industry median Debt-to-Equity is 0.91. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Restaurants company?
The median Debt-to-Equity among Restaurants companies is 0.91, based on 317 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity 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 Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on McDonald's and its competitors. For the Restaurants industry, the median Debt-to-Equity is 0.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current Debt-to-Equity is -42.71. 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?
Based on GuruFocus' analysis, McDonald's (MCD) is currently considered Modestly Undervalued. The stock's GF Value™ is $326.81, compared to a current price of $270.30 — trading 17.3% below its estimated fair value. The current Debt-to-Equity is -42.71. 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 Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For McDonald's (MCD), the current Debt-to-Equity is -42.71 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 (MCD) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's stock appears to be undervalued.
The current stock price of $270.30 is trading 17.3% below its estimated GF Value™ of $326.81.
GuruFocus considers McDonald's to be Modestly Undervalued.
Key valuation signals for MCD:
Debt-to-Equity: -42.71
GF Value™: $326.81 vs. price of $270.30 (17.3% below fair value)
No single metric tells the full story. See the 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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