MCD (McDonald's) Risk Assessment


MCD McDonald's Corp MCD
74 GF Score
Price $280.63
GF Value $326.39
Valuation Modestly Undervalued
! 2 Warning Signs
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What is McDonald's Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of McDonald's is: Low Risk: Strong fundamentals, worth long-term holding.

McDonald's  (NYSE:MCD) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

McDonald's Risk Assessment Related Terms

MCD vs SBUX, YUM, CMG: Risk Assessment Comparison

For the Restaurants subindustry, McDonald's's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, McDonald's's Risk Assessment distribution charts can be found below:

* The bar in red indicates where McDonald's's Risk Assessment falls into.


MCD
74GF Score
McDonald's Corp MCD
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
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Is McDonald's (MCD) Overvalued in 2026?

Based on GuruFocus' analysis, McDonald's stock appears to be undervalued. The current stock price of $280.63 is trading 14% below its estimated GF Value™ of $326.39. GuruFocus considers McDonald's to be Modestly Undervalued.

Key valuation signals for MCD:

  • Risk Assessment:
  • GF Value™: $326.39 vs. price of $280.63 (14% below fair value)
  • GF Score™: 74/100 with 2 warning signs

No single metric tells the full story. See the MCD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

McDonald's Business Description

Address 110 North Carpenter Street, Chicago, IL, USA, 60607
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

Get the complete analysis for MCD

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$280.63
Price
$326.39
GF Value