McDonald'sPFTS:MCD 78 Pretax Margin % is 39.01% as of Mar. 2026, which is 4% above its 10-year median of 37.55. GuruFocus rates PFTS:MCD with a GF Score™ of 78/100. The stock has 2 warning signs investors should review. Among 366 Restaurants companies, McDonald's ranks better than 98.36% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. McDonald's's Pre-Tax Income for the
three
months ended in Mar. 2026 was $2,542.00 Mil. McDonald's's Revenue for the
three
months ended in Mar. 2026 was $6,517.00 Mil. Therefore, McDonald's's pretax margin for the quarter that ended in Mar. 2026 was 39.01%.
The historical rank and industry rank for McDonald's's Pretax Margin % or its related term are showing as below:
PFTS:MCD'
s Pretax Margin % Range Over the Past 10 Years
Min: 27.89 Med: 37.55 Max: 41.27
Current: 40.48
PFTS:MCD's Pretax Margin % is ranked better than 98.36% of 366
companies
in the Restaurants industry
Industry Median: 2.755
vs PFTS:MCD: 40.48
McDonald's (PFTS:MCD) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
McDonald's Pretax Margin % Related Terms
McDonald's Pretax Margin % Historical Data
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The historical data trend for McDonald's's Pretax 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.
PFTS:MCD vs SBUX, CMG, YUM: Pretax Margin % Comparison
For the Restaurants subindustry, McDonald's's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where McDonald's's Pretax 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 (PFTS:MCD) has a Pretax Margin % of 39.01% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on McDonald's and its competitors. This is near median its historical median of 37.55. Over the past decade, McDonald's' Pretax Margin % has ranged from 27.89 to 41.27. According to the industry distribution chart, McDonald's ranks #6 out of 366 companies in the Restaurants industry, placing it in the top 1.6%.
Is McDonald's' Pretax Margin % too high?
McDonald's' current Pretax Margin % of 39.01% is near median its 10-year median of 37.55. Over the past 10 years, this metric has ranged from a low of 27.89 to a high of 41.27. The Restaurants industry median Pretax Margin % is 2.76. McDonald's' value of 39.01% is 1316% above this industry median. Based on the distribution chart, McDonald's ranks #6 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 78/100, reflecting its overall financial health beyond just this single metric.
How does McDonald's' Pretax Margin % compare to SBUX and CMG?
According to the Restaurants industry distribution chart, McDonald's ranks #6 out of 366 companies for Pretax Margin %. This places McDonald's in the top 2% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 2.76. McDonald's' value of 39.01% is 1316% above this benchmark. Historically, McDonald's' own Pretax Margin % has ranged from 27.89 to 41.27 over the past decade. While the company's 10-year median is 37.55 vs. the industry median of 2.76, 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 Pretax Margin % for a Restaurants company?
The median Pretax Margin % among Restaurants companies is 2.76, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current Pretax Margin % of 39.01% is 1316% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on McDonald's and its competitors. For the Restaurants industry, the median Pretax Margin % is 2.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current Pretax Margin % is 39.01%, which is near median its own 10-year median of 37.55. 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 (PFTS:MCD) has a current Pretax Margin % of 39.01%. The current Pretax Margin % is 39.01%, which is near median its 10-year median of 37.55 and 1316% above the Restaurants industry median of 2.76. McDonald's' overall GF Score™ is 78/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For McDonald's (PFTS:MCD), the current Pretax Margin % is 39.01% 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.
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%).
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