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McDonald'sMCD -0.16%74 EV-to-EBIT is 19.43 as of Jul. 14, 2026, which is 13% below its 10-year median of 22.22. 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 262 Restaurants companies, McDonald's ranks worse than 59.54% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
McDonald's's Enterprise Value for the quarter that ended in Mar. 2026 was $274,529 Mil.
McDonald's's EBIT 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 $12,715 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.
McDonald's EV-to-EBIT Related Terms
McDonald's EV-to-EBIT Historical Data
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The historical data trend for McDonald's's EV-to-EBIT 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 EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where McDonald's's EV-to-EBIT falls into.
McDonald's's current Enterprise Value is $247,089 Mil.
McDonald's's EBIT 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 $12,715 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.
McDonald's (MCD) has a EV-to-EBIT of 19.43 as of Jul. 14, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on McDonald's and its competitors. This is 13% below median its historical median of 22.22. Over the past decade, McDonald's' EV-to-EBIT has ranged from 15.33 to 29.51. According to the industry distribution chart, McDonald's ranks #156 out of 262 companies in the Restaurants industry, placing it in the top 59.5%.
Is McDonald's' EV-to-EBIT too high?
McDonald's' current EV-to-EBIT of 19.43 is 13% below median its 10-year median of 22.22. Over the past 10 years, this metric has ranged from a low of 15.33 to a high of 29.51. The Restaurants industry median EV-to-EBIT is 16.75. McDonald's' value of 19.43 is 16% above this industry median. Based on the distribution chart, McDonald's ranks #156 out of 262 companies in the Restaurants industry, which is below the industry midpoint. 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' EV-to-EBIT compare to SBUX and YUM?
According to the Restaurants industry distribution chart, McDonald's ranks #156 out of 262 companies for EV-to-EBIT. This places McDonald's in the lower half of its industry. The industry median EV-to-EBIT is 16.75. McDonald's' value of 19.43 is 16% above this benchmark. Historically, McDonald's' own EV-to-EBIT has ranged from 15.33 to 29.51 over the past decade. While the company's 10-year median is 22.22 vs. the industry median of 16.75, McDonald's has consistently been above 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 EV-to-EBIT for a Restaurants company?
The median EV-to-EBIT among Restaurants companies is 16.75, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current EV-to-EBIT of 19.43 is 16% above 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on McDonald's and its competitors. For the Restaurants industry, the median EV-to-EBIT is 16.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current EV-to-EBIT is 19.43, which is 13% below median its own 10-year median of 22.22. 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 $272.17 — trading 16.7% below its estimated fair value. The current EV-to-EBIT is 19.43, which is 13% below median its 10-year median of 22.22 and 16% above the Restaurants industry median of 16.75. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For McDonald's (MCD), the current EV-to-EBIT is 19.43 as of Jul. 14, 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 $272.17 is trading 16.7% below its estimated GF Value™ of $326.81.
GuruFocus considers McDonald's to be Modestly Undervalued.
Key valuation signals for MCD:
EV-to-EBIT: 19.43 (13% below median its 10-year median of 22.22)
GF Value™: $326.81 vs. price of $272.17 (16.7% below fair value)
Industry Position: 16% above the Restaurants median (#156 of 262)
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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