McDonald's (XSWX:MCD) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
McDonald's Forward PE Ratio Related Terms
McDonald's Forward PE Ratio Historical Data
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The historical data trend for McDonald's's Forward PE Ratio 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.
McDonald's Forward PE Ratio Chart
McDonald's Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2020-12
2021-12
2022-12
Forward PE Ratio
22.32
19.69
24.69
21.01
24.45
26.95
21.65
20.83
McDonald's Quarterly Data
2015-12
2016-03
2016-06
2016-09
2016-12
2017-03
2017-06
2017-09
2017-12
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2026-03
Forward PE Ratio
22.32
19.69
21.98
18.90
19.69
20.45
25.00
22.52
24.69
20.53
21.69
19.65
21.01
23.31
25.64
23.15
24.45
24.33
37.17
26.88
26.95
25.38
25.71
22.32
21.65
21.37
21.28
19.61
20.83
25.32
23.96
XSWX:MCD vs SBUX, YUM, CMG: Forward PE Ratio Comparison
For the Restaurants subindustry, McDonald's's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where McDonald's's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
McDonald's (XSWX:MCD) has a Forward PE Ratio of 20.99 as of Jul. 02, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on McDonald's and its competitors. According to the industry distribution chart, McDonald's ranks #95 out of 158 companies in the Restaurants industry, placing it in the top 60.1%.
Is McDonald's' Forward PE Ratio too high?
McDonald's' current Forward PE Ratio is 20.99. The Restaurants industry median Forward PE Ratio is 17.87. McDonald's' value of 20.99 is 17.5% above this industry median. Based on the distribution chart, McDonald's ranks #95 out of 158 companies in the Restaurants industry, which is below the industry midpoint. Overall, McDonald's has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does McDonald's' Forward PE Ratio compare to SBUX and YUM?
According to the Restaurants industry distribution chart, McDonald's ranks #95 out of 158 companies for Forward PE Ratio. This places McDonald's in the lower half of its industry. The industry median Forward PE Ratio is 17.87. McDonald's' value of 20.99 is 17.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Restaurants company?
The median Forward PE Ratio among Restaurants companies is 17.87, based on 158 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current Forward PE Ratio of 20.99 is 17.5% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on McDonald's and its competitors. For the Restaurants industry, the median Forward PE Ratio is 17.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current Forward PE Ratio is 20.99. 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 Forward PE Ratio of 20.99. The stock's GF Value™ is CHF263.84, compared to a current price of CHF217.85 — trading 17.4% below its estimated fair value. The current Forward PE Ratio is 20.99 and 17.5% above the Restaurants industry median of 17.87. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For McDonald's (XSWX:MCD), the current Forward PE Ratio is 20.99 as of Jul. 02, 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 CHF217.85 is trading 17.4% below its estimated GF Value™ of CHF263.84.
Key valuation signals for XSWX:MCD:
Forward PE Ratio: 20.99
GF Value™: CHF263.84 vs. price of CHF217.85 (17.4% below fair value)
Industry Position: 17.5% above the Restaurants median (#95 of 158)
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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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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