McDonald'sMEX:MCD +0.21%64 PEG Ratio is 2.03 as of Jun. 27, 2026, which is 54% below its 10-year median of 4.37. GuruFocus rates MEX:MCD with a GF Score™ of 64/100 and a GF Value™ of MXN5,662.93 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 111 Restaurants companies, McDonald's ranks worse than 66.67% on this metric.
PE Ratio without NRI / 5-Year EBITDA Growth Rate*
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, McDonald's's PE Ratio without NRI is 20.71. McDonald's's 5-Year EBITDA growth rate is 10.20%. Therefore, McDonald's's PEG Ratio for today is 2.03.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for McDonald's's PEG Ratio or its related term are showing as below:
MEX:MCD'
s PEG Ratio Range Over the Past 10 Years
Min: 1.82 Med: 4.37 Max: 154.67
Current: 2.14
During the past 13 years, McDonald's's highest PEG Ratio was 154.67. The lowest was 1.82. And the median was 4.37.
MEX:MCD's PEG Ratio is ranked worse than 66.67% of 111
companies
in the Restaurants industry
Industry Median: 1.25
vs MEX:MCD: 2.14
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
McDonald's (MEX:MCD) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
McDonald's PEG Ratio Related Terms
McDonald's PEG Ratio Historical Data
* Premium members only.
The historical data trend for McDonald's's PEG 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.
For the Restaurants subindustry, McDonald's's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's PEG Ratio distribution charts can be found below:
* The bar in red indicates where McDonald's's PEG Ratio 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
McDonald's (MEX:MCD) has a PEG Ratio of 2.03 as of Jun. 27, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on McDonald's and its competitors. This is 54% below median its historical median of 4.37. Over the past decade, McDonald's' PEG Ratio has ranged from 1.82 to 154.67. According to the industry distribution chart, McDonald's ranks #74 out of 111 companies in the Restaurants industry, placing it in the top 66.7%.
Is McDonald's' PEG Ratio too high?
McDonald's' current PEG Ratio of 2.03 is 54% below median its 10-year median of 4.37. Over the past 10 years, this metric has ranged from a low of 1.82 to a high of 154.67. The Restaurants industry median PEG Ratio is 1.25. McDonald's' value of 2.03 is 62.4% above this industry median. Based on the distribution chart, McDonald's ranks #74 out of 111 companies in the Restaurants industry, which is below the industry midpoint. Overall, McDonald's has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does McDonald's' PEG Ratio compare to SBUX and CMG?
According to the Restaurants industry distribution chart, McDonald's ranks #74 out of 111 companies for PEG Ratio. This places McDonald's in the lower half of its industry. The industry median PEG Ratio is 1.25. McDonald's' value of 2.03 is 62.4% above this benchmark. Historically, McDonald's' own PEG Ratio has ranged from 1.82 to 154.67 over the past decade. While the company's 10-year median is 4.37 vs. the industry median of 1.25, 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 PEG Ratio for a Restaurants company?
The median PEG Ratio among Restaurants companies is 1.25, based on 111 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current PEG Ratio of 2.03 is 62.4% 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 PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on McDonald's and its competitors. For the Restaurants industry, the median PEG Ratio is 1.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current PEG Ratio is 2.03, which is 54% below median its own 10-year median of 4.37. 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 (MEX:MCD) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN5,662.93, compared to a current price of MXN4,688.00 — trading 17.2% below its estimated fair value. The current PEG Ratio is 2.03, which is 54% below median its 10-year median of 4.37 and 62.4% above the Restaurants industry median of 1.25. McDonald's' overall GF Score™ is 64/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For McDonald's (MEX:MCD), the current PEG Ratio is 2.03 as of Jun. 27, 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 (MEX:MCD) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's stock appears to be undervalued.
The current stock price of MXN4,688.00 is trading 17.2% below its estimated GF Value™ of MXN5,662.93.
GuruFocus considers McDonald's to be Modestly Undervalued.
Key valuation signals for MEX:MCD:
PEG Ratio: 2.03 (54% below median its 10-year median of 4.37)
GF Value™: MXN5,662.93 vs. price of MXN4,688.00 (17.2% below fair value)
Industry Position: 62.4% above the Restaurants median (#74 of 111)
No single metric tells the full story. See the MEX: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%).
64GF Score
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