McDonald'sBSP:MCDC34 +0.76%70 Net Margin % is 30.43% as of Mar. 2026, which is 9% above its 10-year median of 28.04. GuruFocus rates BSP:MCDC34 with a GF Score™ of 70/100 and a GF Value™ of R$83.80 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 366 Restaurants companies, McDonald's ranks better than 98.09% on this metric.
Net margin is calculated as Net Income divided by its Revenue. McDonald's's Net Income for the
three
months ended in Mar. 2026 was R$10,370 Mil. McDonald's's Revenue for the
three
months ended in Mar. 2026 was R$34,081 Mil. Therefore, McDonald's's net margin for the quarter that ended in Mar. 2026 was 30.43%.
The historical rank and industry rank for McDonald's's Net Margin % or its related term are showing as below:
BSP:MCDC34'
s Net Margin % Range Over the Past 10 Years
Min: 19.03 Med: 28.04 Max: 33.22
Current: 31.62
BSP:MCDC34's Net Margin % is ranked better than 98.09% of 366
companies
in the Restaurants industry
Industry Median: 2.06
vs BSP:MCDC34: 31.62
McDonald's (BSP:MCDC34) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
McDonald's Net Margin % Related Terms
McDonald's Net Margin % Historical Data
* Premium members only.
The historical data trend for McDonald's's Net Margin % 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.
BSP:MCDC34 vs SBUX, CMG, YUM: Net Margin % Comparison
For the Restaurants subindustry, McDonald's's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's Net Margin % distribution charts can be found below:
* The bar in red indicates where McDonald's's Net Margin % 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 (BSP:MCDC34) has a Net Margin % of 30.43% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on McDonald's and its competitors. This is near median its historical median of 28.04. Over the past decade, McDonald's' Net Margin % has ranged from 19.03 to 33.22. According to the industry distribution chart, McDonald's ranks #7 out of 366 companies in the Restaurants industry, placing it in the top 1.9%.
Is McDonald's' Net Margin % too high?
McDonald's' current Net Margin % of 30.43% is near median its 10-year median of 28.04. Over the past 10 years, this metric has ranged from a low of 19.03 to a high of 33.22. The Restaurants industry median Net Margin % is 2.06. McDonald's' value of 30.43% is 1377.2% above this industry median. Based on the distribution chart, McDonald's ranks #7 out of 366 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, McDonald's has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does McDonald's' Net Margin % compare to SBUX and CMG?
According to the Restaurants industry distribution chart, McDonald's ranks #7 out of 366 companies for Net Margin %. This places McDonald's in the top 2% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.06. McDonald's' value of 30.43% is 1377.2% above this benchmark. Historically, McDonald's' own Net Margin % has ranged from 19.03 to 33.22 over the past decade. While the company's 10-year median is 28.04 vs. the industry median of 2.06, 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 Net Margin % for a Restaurants company?
The median Net Margin % among Restaurants companies is 2.06, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current Net Margin % of 30.43% is 1377.2% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on McDonald's and its competitors. For the Restaurants industry, the median Net Margin % is 2.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current Net Margin % is 30.43%, which is near median its own 10-year median of 28.04. 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 (BSP:MCDC34) is currently considered Modestly Undervalued. The stock's GF Value™ is R$83.80, compared to a current price of R$69.86 — trading 16.6% below its estimated fair value. The current Net Margin % is 30.43%, which is near median its 10-year median of 28.04 and 1377.2% above the Restaurants industry median of 2.06. McDonald's' overall GF Score™ is 70/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For McDonald's (BSP:MCDC34), the current Net Margin % is 30.43% 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 (BSP:MCDC34) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's stock appears to be undervalued.
The current stock price of R$69.86 is trading 16.6% below its estimated GF Value™ of R$83.80.
GuruFocus considers McDonald's to be Modestly Undervalued.
Key valuation signals for BSP:MCDC34:
Net Margin %: 30.43% (near median its 10-year median of 28.04)
GF Value™: R$83.80 vs. price of R$69.86 (16.6% below fair value)
Industry Position: 1377.2% above the Restaurants median (#7 of 366)
No single metric tells the full story. See the BSP:MCDC34 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%).
70GF Score
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