5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
McDonald's's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 62.34%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for McDonald's's 5-Year ROIIC % or its related term are showing as below:
XSWX:MCD's 5-Year ROIIC % is ranked better than 89.21% of 315
companies
in the Restaurants industry
Industry Median: 0.74
vs XSWX:MCD: 62.34
McDonald's (XSWX:MCD) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
McDonald's 5-Year ROIIC % Related Terms
McDonald's 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for McDonald's's 5-Year ROIIC % 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: 5-Year ROIIC % Comparison
For the Restaurants subindustry, McDonald's's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where McDonald's's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
McDonald's (XSWX:MCD) has a 5-Year ROIIC % of 62.34 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on McDonald's and its competitors. According to the industry distribution chart, McDonald's ranks #34 out of 315 companies in the Restaurants industry, placing it in the top 10.8%.
Is McDonald's' 5-Year ROIIC % too high?
McDonald's' current 5-Year ROIIC % is 62.34. The Restaurants industry median 5-Year ROIIC % is 0.74. McDonald's' value of 62.34 is 8324.3% above this industry median. Based on the distribution chart, McDonald's ranks #34 out of 315 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' 5-Year ROIIC % compare to SBUX and YUM?
According to the Restaurants industry distribution chart, McDonald's ranks #34 out of 315 companies for 5-Year ROIIC %. This places McDonald's in the top 11% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 0.74. McDonald's' value of 62.34 is 8324.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for a Restaurants company?
The median 5-Year ROIIC % among Restaurants companies is 0.74, based on 315 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current 5-Year ROIIC % of 62.34 is 8324.3% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on McDonald's and its competitors. For the Restaurants industry, the median 5-Year ROIIC % is 0.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current 5-Year ROIIC % is 62.34. 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 5-Year ROIIC % of 62.34. The stock's GF Value™ is CHF264.21, compared to a current price of CHF216.63 — trading 18% below its estimated fair value. The current 5-Year ROIIC % is 62.34 and 8324.3% above the Restaurants industry median of 0.74. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For McDonald's (XSWX:MCD), the current 5-Year ROIIC % is 62.34 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 (XSWX:MCD) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's stock appears to be undervalued.
The current stock price of CHF216.63 is trading 18% below its estimated GF Value™ of CHF264.21.
Key valuation signals for XSWX:MCD:
5-Year ROIIC %: 62.34
GF Value™: CHF264.21 vs. price of CHF216.63 (18% below fair value)
Industry Position: 8324.3% above the Restaurants median (#34 of 315)
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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