The historical rank and industry rank for McDonald's Holdings Co (Japan)'s ROE % or its related term are showing as below:
FRA:MJ8'
s ROE % Range Over the Past 10 Years
Min: 4.91 Med: 12.39 Max: 20.05
Current: 13.76
During the past 13 years, McDonald's Holdings Co (Japan)'s highest ROE % was 20.05%. The lowest was 4.91%. And the median was 12.39%.
FRA:MJ8's ROE % is ranked better than 70.81% of 346
companies
in the Restaurants industry
Industry Median: 6.38
vs FRA:MJ8: 13.76
McDonald's Holdings Co (Japan) (FRA:MJ8) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
McDonald's Holdings Co (Japan) ROE % Related Terms
McDonald's Holdings Co (Japan) ROE % Historical 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.
For the Restaurants subindustry, McDonald's Holdings Co (Japan)'s ROE %, along with its competitors' market caps and ROE % 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 Holdings Co (Japan) ROE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's Holdings Co (Japan)'s ROE % distribution charts can be found below:
* The bar in red indicates where McDonald's Holdings Co (Japan)'s ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
McDonald's Holdings Co (Japan) (FRA:MJ8) has a ROE % of 9.74% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on McDonald's Holdings Co (Japan) and its competitors. This is 21% below median its historical median of 12.39. Over the past decade, McDonald's Holdings Co (Japan)'s ROE % has ranged from 4.91 to 20.05. According to the industry distribution chart, McDonald's Holdings Co (Japan) ranks #101 out of 346 companies in the Restaurants industry, placing it in the top 29.2%.
Is McDonald's Holdings Co (Japan)'s ROE % too high?
McDonald's Holdings Co (Japan)'s current ROE % of 9.74% is 21% below median its 10-year median of 12.39. Over the past 10 years, this metric has ranged from a low of 4.91 to a high of 20.05. The Restaurants industry median ROE % is 6.38. McDonald's Holdings Co (Japan)'s value of 9.74% is 52.7% above this industry median. Based on the distribution chart, McDonald's Holdings Co (Japan) ranks #101 out of 346 companies in the Restaurants industry, which is above the industry midpoint. Overall, McDonald's Holdings Co (Japan) has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does McDonald's Holdings Co (Japan)'s ROE % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, McDonald's Holdings Co (Japan) ranks #101 out of 346 companies for ROE %. This puts McDonald's Holdings Co (Japan) in the upper half of its industry. The industry median ROE % is 6.38. McDonald's Holdings Co (Japan)'s value of 9.74% is 52.7% above this benchmark. Historically, McDonald's Holdings Co (Japan)'s own ROE % has ranged from 4.91 to 20.05 over the past decade. While the company's 10-year median is 12.39 vs. the industry median of 6.38, McDonald's Holdings Co (Japan) 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 ROE % for a Restaurants company?
The median ROE % among Restaurants companies is 6.38, based on 346 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's Holdings Co (Japan)'s current ROE % of 9.74% is 52.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on McDonald's Holdings Co (Japan) and its competitors. For the Restaurants industry, the median ROE % is 6.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's Holdings Co (Japan)'s current ROE % is 9.74%, which is 21% below median its own 10-year median of 12.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDonald's Holdings Co (Japan) stock overvalued right now?
McDonald's Holdings Co (Japan) (FRA:MJ8) has a current ROE % of 9.74%. The stock's GF Value™ is €35.15, compared to a current price of €40.00 — trading 13.8% above its estimated fair value. The current ROE % is 9.74%, which is 21% below median its 10-year median of 12.39 and 52.7% above the Restaurants industry median of 6.38. McDonald's Holdings Co (Japan)'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 ROE % calculated?
ROE % is calculated from a company's financial statements. For McDonald's Holdings Co (Japan) (FRA:MJ8), the current ROE % is 9.74% as of Dec. 2025. 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 Holdings Co (Japan) (FRA:MJ8) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's Holdings Co (Japan) stock appears to be overvalued.
The current stock price of €40.00 is trading 13.8% above its estimated GF Value™ of €35.15.
Key valuation signals for FRA:MJ8:
ROE %: 9.74% (21% below median its 10-year median of 12.39)
GF Value™: €35.15 vs. price of €40.00 (13.8% above fair value)
Industry Position: 52.7% above the Restaurants median (#101 of 346)
No single metric tells the full story. See the FRA:MJ8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McDonald's Holdings Co (Japan) Business Description
McDonald's Holdings Co (Japan) Ltd has a license to operate McDonald's fast-food restaurants in Japan. It is engaged in the operation and management of hamburger restaurant chains under the McDonald's brand. The company pays royalties for licensed rights and, in Japan, provides sub-licenses for its know-how and trademarks to franchisees operating its franchise restaurants, from whom it earns royalty income.
74GF Score
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