McDonald'sXSWX:MCD 78 ROC (Joel Greenblatt) % is 27.30% as of Mar. 2026, which is 11% below its 10-year median of 30.58. GuruFocus rates XSWX:MCD with a GF Score™ of 78/100 and a GF Value™ of CHF264.62. The stock has 2 warning signs investors should review. Among 363 Restaurants companies, McDonald's ranks better than 81.27% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. McDonald's's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 27.30%.
The historical rank and industry rank for McDonald's's ROC (Joel Greenblatt) % or its related term are showing as below:
XSWX:MCD'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 19.31 Med: 30.58 Max: 43.22
Current: 30.39
During the past 13 years, McDonald's's highest ROC (Joel Greenblatt) % was 43.22%. The lowest was 19.31%. And the median was 30.58%.
XSWX:MCD's ROC (Joel Greenblatt) % is ranked better than 81.27% of 363
companies
in the Restaurants industry
Industry Median: 8.45
vs XSWX:MCD: 30.39
McDonald's's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 8.80% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
McDonald's ROC (Joel Greenblatt) % Historical Data
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The historical data trend for McDonald's's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Restaurants subindustry, McDonald's's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where McDonald's's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 27.30% mean?
McDonald's (XSWX:MCD) has a ROC (Joel Greenblatt) % of 27.30% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on McDonald's and its competitors. This is 11% below median its historical median of 30.58. Over the past decade, McDonald's' ROC (Joel Greenblatt) % has ranged from 19.31 to 43.22. According to the industry distribution chart, McDonald's ranks #68 out of 363 companies in the Restaurants industry, placing it in the top 18.7%.
Is McDonald's' ROC (Joel Greenblatt) % too high?
McDonald's' current ROC (Joel Greenblatt) % of 27.30% is 11% below median its 10-year median of 30.58. Over the past 10 years, this metric has ranged from a low of 19.31 to a high of 43.22. The Restaurants industry median ROC (Joel Greenblatt) % is 8.45. McDonald's' value of 27.30% is 223.1% above this industry median. Based on the distribution chart, McDonald's ranks #68 out of 363 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' ROC (Joel Greenblatt) % compare to SBUX and YUM?
According to the Restaurants industry distribution chart, McDonald's ranks #68 out of 363 companies for ROC (Joel Greenblatt) %. This places McDonald's in the top 19% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 8.45. McDonald's' value of 27.30% is 223.1% above this benchmark. Historically, McDonald's' own ROC (Joel Greenblatt) % has ranged from 19.31 to 43.22 over the past decade. While the company's 10-year median is 30.58 vs. the industry median of 8.45, 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 ROC (Joel Greenblatt) % for a Restaurants company?
The median ROC (Joel Greenblatt) % among Restaurants companies is 8.45, based on 363 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current ROC (Joel Greenblatt) % of 27.30% is 223.1% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on McDonald's and its competitors. For the Restaurants industry, the median ROC (Joel Greenblatt) % is 8.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current ROC (Joel Greenblatt) % is 27.30%, which is 11% below median its own 10-year median of 30.58. 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 ROC (Joel Greenblatt) % of 27.30%. The stock's GF Value™ is CHF264.62, compared to a current price of CHF219.06 — trading 17.2% below its estimated fair value. The current ROC (Joel Greenblatt) % is 27.30%, which is 11% below median its 10-year median of 30.58 and 223.1% above the Restaurants industry median of 8.45. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For McDonald's (XSWX:MCD), the current ROC (Joel Greenblatt) % is 27.30% 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 CHF219.06 is trading 17.2% below its estimated GF Value™ of CHF264.62.
Key valuation signals for XSWX:MCD:
ROC (Joel Greenblatt) %: 27.30% (11% below median its 10-year median of 30.58)
GF Value™: CHF264.62 vs. price of CHF219.06 (17.2% below fair value)
Industry Position: 223.1% above the Restaurants median (#68 of 363)
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%).
78GF Score
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