Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. McDonald's Holdings Co (Japan)'s
Operating Income
for the
three
months ended in Dec. 2025 was $66 Mil. McDonald's Holdings Co (Japan)'s Interest Expense for the
three
months ended in Dec. 2025 was $-0 Mil.
McDonald's Holdings Co (Japan)'s interest coverage for the quarter that ended in Dec. 2025 was 5,109.31.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. McDonald's Holdings Co (Japan) Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for McDonald's Holdings Co (Japan)'s Interest Coverage or its related term are showing as below:
MDNDF'
s Interest Coverage Range Over the Past 10 Years
Min: 28.76 Med: 2960.67 Max: 8278.86
Current: 8278.86
MDNDF's Interest Coverage is ranked better than 97.33% of 262
companies
in the Restaurants industry
Industry Median: 6.45
vs MDNDF: 8278.86
McDonald's Holdings Co (Japan) (OTCPK:MDNDF) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
McDonald's Holdings Co (Japan) Interest Coverage Related Terms
McDonald's Holdings Co (Japan) Interest Coverage Historical Data
* 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: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
McDonald's Holdings Co (Japan) Interest Coverage Chart
MDNDF vs MCD, SBUX, CMG: Interest Coverage Comparison
For the Restaurants subindustry, McDonald's Holdings Co (Japan)'s Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Holdings Co (Japan) Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's Holdings Co (Japan)'s Interest Coverage distribution charts can be found below:
* The bar in red indicates where McDonald's Holdings Co (Japan)'s Interest Coverage falls into.
McDonald's Holdings Co (Japan) Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Holdings Co (Japan) (MDNDF) has a Interest Coverage of 5,109.31 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on McDonald's Holdings Co (Japan) and its competitors. This is 73% above median its historical median of 2,960.67. Over the past decade, McDonald's Holdings Co (Japan)'s Interest Coverage has ranged from 28.76 to 8,278.86. According to the industry distribution chart, McDonald's Holdings Co (Japan) ranks #7 out of 262 companies in the Restaurants industry, placing it in the top 2.7%.
Is McDonald's Holdings Co (Japan)'s Interest Coverage too high?
McDonald's Holdings Co (Japan)'s current Interest Coverage of 5,109.31 is 73% above median its 10-year median of 2,960.67. Over the past 10 years, this metric has ranged from a low of 28.76 to a high of 8,278.86. The Restaurants industry median Interest Coverage is 6.45. McDonald's Holdings Co (Japan)'s value of 5,109.31 is 79114.1% above this industry median. Based on the distribution chart, McDonald's Holdings Co (Japan) ranks #7 out of 262 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, McDonald's Holdings Co (Japan) has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does McDonald's Holdings Co (Japan)'s Interest Coverage compare to MCD and SBUX?
According to the Restaurants industry distribution chart, McDonald's Holdings Co (Japan) ranks #7 out of 262 companies for Interest Coverage. This places McDonald's Holdings Co (Japan) in the top 3% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 6.45. McDonald's Holdings Co (Japan)'s value of 5,109.31 is 79114.1% above this benchmark. Historically, McDonald's Holdings Co (Japan)'s own Interest Coverage has ranged from 28.76 to 8,278.86 over the past decade. While the company's 10-year median is 2,960.67 vs. the industry median of 6.45, McDonald's Holdings Co (Japan) 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 Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.45, based on 262 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's Holdings Co (Japan)'s current Interest Coverage of 5,109.31 is 79114.1% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on McDonald's Holdings Co (Japan) and its competitors. For the Restaurants industry, the median Interest Coverage is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's Holdings Co (Japan)'s current Interest Coverage is 5,109.31, which is 73% above median its own 10-year median of 2,960.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDonald's Holdings Co (Japan) stock overvalued right now?
McDonald's Holdings Co (Japan) (MDNDF) has a current Interest Coverage of 5,109.31. The stock's GF Value™ is $37.86, compared to a current price of $42.00 — trading 10.9% above its estimated fair value. The current Interest Coverage is 5,109.31, which is 73% above median its 10-year median of 2,960.67 and 79114.1% above the Restaurants industry median of 6.45. McDonald's Holdings Co (Japan)'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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For McDonald's Holdings Co (Japan) (MDNDF), the current Interest Coverage is 5,109.31 as of Dec. 2025. 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 Holdings Co (Japan) (MDNDF) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's Holdings Co (Japan) stock appears to be overvalued.
The current stock price of $42.00 is trading 10.9% above its estimated GF Value™ of $37.86.
Key valuation signals for MDNDF:
Interest Coverage: 5,109.31 (73% above median its 10-year median of 2,960.67)
GF Value™: $37.86 vs. price of $42.00 (10.9% above fair value)
Industry Position: 79114.1% above the Restaurants median (#7 of 262)
No single metric tells the full story. See the MDNDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McDonald's Holdings Co (Japan) Business Description
McDonald's Holdings Co (Japan) Ltd has a license to operate McDonald's fast-food restaurants in Japan. It is engaged in the operation and management of hamburger restaurant chains under the McDonald's brand. The company pays royalties for licensed rights and, in Japan, provides sub-licenses for its know-how and trademarks to franchisees operating its franchise restaurants, from whom it earns royalty income.
74GF Score
Get the complete analysis for MDNDF
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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