McDonald'sXSWX:MCD +0.87%74 Return-on-Tangible-Asset is 13.97% as of Mar. 2026, which is 11% below its 10-year median of 15.74. GuruFocus rates XSWX:MCD with a GF Score™ of 74/100 and a GF Value™ of CHF255.52. The stock has 2 warning signs investors should review. Among 364 Restaurants companies, McDonald's ranks better than 92.03% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. McDonald's's annualizedNet Income for the quarter that ended in Mar. 2026 was CHF6,245 Mil. McDonald's's average total tangible assets for the quarter that ended in Mar. 2026 was CHF44,693 Mil. Therefore, McDonald's's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 13.97%.
The historical rank and industry rank for McDonald's's Return-on-Tangible-Asset or its related term are showing as below:
XSWX:MCD'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 9.99 Med: 15.74 Max: 19.14
Current: 15.52
During the past 13 years, McDonald's's highest Return-on-Tangible-Asset was 19.14%. The lowest was 9.99%. And the median was 15.74%.
XSWX:MCD's Return-on-Tangible-Asset is ranked better than 92.03% of 364
companies
in the Restaurants industry
Industry Median: 2.39
vs XSWX:MCD: 15.52
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
McDonald's Return-on-Tangible-Asset Related Terms
McDonald's Return-on-Tangible-Asset Historical Data
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The historical data trend for McDonald's's Return-on-Tangible-Asset 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.
XSWX:MCD vs SBUX, YUM, CMG: Return-on-Tangible-Asset Comparison
For the Restaurants subindustry, McDonald's's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where McDonald's's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 13.97% mean?
McDonald's (XSWX:MCD) has a Return-on-Tangible-Asset of 13.97% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on McDonald's and its competitors. This is 11% below median its historical median of 15.74. Over the past decade, McDonald's' Return-on-Tangible-Asset has ranged from 9.99 to 19.14. According to the industry distribution chart, McDonald's ranks #29 out of 364 companies in the Restaurants industry, placing it in the top 8%.
Is McDonald's' Return-on-Tangible-Asset too high?
McDonald's' current Return-on-Tangible-Asset of 13.97% is 11% below median its 10-year median of 15.74. Over the past 10 years, this metric has ranged from a low of 9.99 to a high of 19.14. The Restaurants industry median Return-on-Tangible-Asset is 2.39. McDonald's' value of 13.97% is 484.5% above this industry median. Based on the distribution chart, McDonald's ranks #29 out of 364 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 74/100, reflecting its overall financial health beyond just this single metric.
How does McDonald's' Return-on-Tangible-Asset compare to SBUX and YUM?
According to the Restaurants industry distribution chart, McDonald's ranks #29 out of 364 companies for Return-on-Tangible-Asset. This places McDonald's in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.39. McDonald's' value of 13.97% is 484.5% above this benchmark. Historically, McDonald's' own Return-on-Tangible-Asset has ranged from 9.99 to 19.14 over the past decade. While the company's 10-year median is 15.74 vs. the industry median of 2.39, 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 Return-on-Tangible-Asset for a Restaurants company?
The median Return-on-Tangible-Asset among Restaurants companies is 2.39, based on 364 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current Return-on-Tangible-Asset of 13.97% is 484.5% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on McDonald's and its competitors. For the Restaurants industry, the median Return-on-Tangible-Asset is 2.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current Return-on-Tangible-Asset is 13.97%, which is 11% below median its own 10-year median of 15.74. 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 (XSWX:MCD) has a current Return-on-Tangible-Asset of 13.97%. The stock's GF Value™ is CHF255.52, compared to a current price of CHF219.75 — trading 14% below its estimated fair value. The current Return-on-Tangible-Asset is 13.97%, which is 11% below median its 10-year median of 15.74 and 484.5% above the Restaurants industry median of 2.39. McDonald'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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For McDonald's (XSWX:MCD), the current Return-on-Tangible-Asset is 13.97% 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 (XSWX:MCD) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's stock appears to be undervalued.
The current stock price of CHF219.75 is trading 14% below its estimated GF Value™ of CHF255.52.
Key valuation signals for XSWX:MCD:
Return-on-Tangible-Asset: 13.97% (11% below median its 10-year median of 15.74)
GF Value™: CHF255.52 vs. price of CHF219.75 (14% below fair value)
Industry Position: 484.5% above the Restaurants median (#29 of 364)
No single metric tells the full story. See the XSWX: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%).
74GF Score
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