Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
McDonald's's 10-Year RORE % for the quarter that ended in Mar. 2026 was 8.51%.
The industry rank for McDonald's's 10-Year RORE % or its related term are showing as below:
XSWX:MCD's 10-Year RORE % is ranked better than 71.37% of 227
companies
in the Restaurants industry
Industry Median: 6.11
vs XSWX:MCD: 8.51
McDonald's (XSWX:MCD) 10-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 10-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
McDonald's 10-Year RORE % Related Terms
McDonald's 10-Year RORE % Historical Data
* Premium members only.
The historical data trend for McDonald's's 10-Year RORE % 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: 10-Year RORE % Comparison
For the Restaurants subindustry, McDonald's's 10-Year RORE %, along with its competitors' market caps and 10-Year RORE % 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 10-Year RORE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's 10-Year RORE % distribution charts can be found below:
* The bar in red indicates where McDonald's's 10-Year RORE % 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 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 10-year before.
McDonald's (XSWX:MCD) has a 10-Year RORE % of 8.51 as of Mar. 2026. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on McDonald's and its competitors. According to the industry distribution chart, McDonald's ranks #65 out of 227 companies in the Restaurants industry, placing it in the top 28.6%.
Is McDonald's' 10-Year RORE % too high?
McDonald's' current 10-Year RORE % is 8.51. The Restaurants industry median 10-Year RORE % is 6.11. McDonald's' value of 8.51 is 39.3% above this industry median. Based on the distribution chart, McDonald's ranks #65 out of 227 companies in the Restaurants industry, which is above the industry midpoint. Overall, McDonald's has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does McDonald's' 10-Year RORE % compare to SBUX and YUM?
According to the Restaurants industry distribution chart, McDonald's ranks #65 out of 227 companies for 10-Year RORE %. This puts McDonald's in the upper half of its industry. The industry median 10-Year RORE % is 6.11. McDonald's' value of 8.51 is 39.3% 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 10-Year RORE % for a Restaurants company?
The median 10-Year RORE % among Restaurants companies is 6.11, based on 227 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current 10-Year RORE % of 8.51 is 39.3% 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 10-Year RORE % mean?
A high 10-Year RORE % can signal that a stock is expensive relative to its fundamentals. 10-Year RORE % shows how much a company earns by reinvesting its retained earnings in 10-year. View historical data on McDonald's and its competitors. For the Restaurants industry, the median 10-Year RORE % is 6.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current 10-Year RORE % is 8.51. 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 10-Year RORE % of 8.51. 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 10-Year RORE % is 8.51 and 39.3% above the Restaurants industry median of 6.11. 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 10-Year RORE % calculated?
10-Year RORE % is calculated from a company's financial statements. For McDonald's (XSWX:MCD), the current 10-Year RORE % is 8.51 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 CHF216.63 is trading 18% below its estimated GF Value™ of CHF264.21.
Key valuation signals for XSWX:MCD:
10-Year RORE %: 8.51
GF Value™: CHF264.21 vs. price of CHF216.63 (18% below fair value)
Industry Position: 39.3% above the Restaurants median (#65 of 227)
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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10-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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