McDonald'sBSP:MCDC34 +0.76%70 Operating Margin % is 44.25% as of Mar. 2026, which is 5% above its 10-year median of 42.20. 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 365 Restaurants companies, McDonald's ranks better than 98.9% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. McDonald's's Operating Income for the
three
months ended in Mar. 2026 was R$15,082 Mil. McDonald's's Revenue for the
three
months ended in Mar. 2026 was R$34,081 Mil. Therefore, McDonald's's Operating Margin % for the quarter that ended in Mar. 2026 was 44.25%.
Good Sign:
McDonald's Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for McDonald's's Operating Margin % or its related term are showing as below:
BSP:MCDC34'
s Operating Margin % Range Over the Past 10 Years
Min: 31.76 Med: 42.2 Max: 46.1
Current: 45.99
BSP:MCDC34's Operating Margin % is ranked better than 98.9% of 365
companies
in the Restaurants industry
Industry Median: 4.26
vs BSP:MCDC34: 45.99
McDonald's's 5-Year Average Operating Margin % Growth Rate was 3.70% per year.
McDonald's's Operating Income for the
three
months ended in Mar. 2026 was R$15,082 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was R$68,190 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
McDonald's Operating Margin % Related Terms
McDonald's Operating Margin % Historical Data
* Premium members only.
The historical data trend for McDonald's's Operating 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: Operating Margin % Comparison
For the Restaurants subindustry, McDonald's's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's Operating Margin % distribution charts can be found below:
* The bar in red indicates where McDonald's's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
McDonald's's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 44.25% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on McDonald's and its competitors. This is near median its historical median of 42.20. Over the past decade, McDonald's' Operating Margin % has ranged from 31.76 to 46.10. According to the industry distribution chart, McDonald's ranks #4 out of 365 companies in the Restaurants industry, placing it in the top 1.1%.
Is McDonald's' Operating Margin % too high?
McDonald's' current Operating Margin % of 44.25% is near median its 10-year median of 42.20. Over the past 10 years, this metric has ranged from a low of 31.76 to a high of 46.10. The Restaurants industry median Operating Margin % is 4.26. McDonald's' value of 44.25% is 938.7% above this industry median. Based on the distribution chart, McDonald's ranks #4 out of 365 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' Operating Margin % compare to SBUX and CMG?
According to the Restaurants industry distribution chart, McDonald's ranks #4 out of 365 companies for Operating Margin %. This places McDonald's in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.26. McDonald's' value of 44.25% is 938.7% above this benchmark. Historically, McDonald's' own Operating Margin % has ranged from 31.76 to 46.10 over the past decade. While the company's 10-year median is 42.20 vs. the industry median of 4.26, 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 Operating Margin % for a Restaurants company?
The median Operating Margin % among Restaurants companies is 4.26, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current Operating Margin % of 44.25% is 938.7% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on McDonald's and its competitors. For the Restaurants industry, the median Operating Margin % is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current Operating Margin % is 44.25%, which is near median its own 10-year median of 42.20. 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 Operating Margin % is 44.25%, which is near median its 10-year median of 42.20 and 938.7% above the Restaurants industry median of 4.26. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For McDonald's (BSP:MCDC34), the current Operating Margin % is 44.25% 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:
Operating Margin %: 44.25% (near median its 10-year median of 42.20)
GF Value™: R$83.80 vs. price of R$69.86 (16.6% below fair value)
Industry Position: 938.7% above the Restaurants median (#4 of 365)
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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