McDonald'sMCD +4.16%74 5-Year Yield-on-Cost % is 3.81 as of Jul. 05, 2026, which is 15% above its 10-year median of 3.30. GuruFocus rates MCD with a GF Score™ of 74/100 and a GF Value™ of $326.39 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 188 Restaurants companies, McDonald's ranks better than 63.3% on this metric.
McDonald's's yield on cost for the quarter that ended in Mar. 2026 was 3.81.
The historical rank and industry rank for McDonald's's 5-Year Yield-on-Cost % or its related term are showing as below:
MCD'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.82 Med: 3.3 Max: 4.67
Current: 3.81
During the past 13 years, McDonald's's highest Yield on Cost was 4.67. The lowest was 2.82. And the median was 3.30.
MCD's 5-Year Yield-on-Cost % is ranked better than 63.3% of 188
companies
in the Restaurants industry
Industry Median: 2.75
vs MCD: 3.81
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
McDonald's 5-Year Yield-on-Cost % Related Terms
MCD vs SBUX, YUM, CMG: 5-Year Yield-on-Cost % Comparison
For the Restaurants subindustry, McDonald's's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 Yield-on-Cost % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where McDonald's's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of McDonald's is calculated as
McDonald's (MCD) has a 5-Year Yield-on-Cost % of 3.81 as of Jul. 05, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on McDonald's and its competitors. This is 15% above median its historical median of 3.30. Over the past decade, McDonald's' 5-Year Yield-on-Cost % has ranged from 2.82 to 4.67. According to the industry distribution chart, McDonald's ranks #69 out of 188 companies in the Restaurants industry, placing it in the top 36.7%.
Is McDonald's' 5-Year Yield-on-Cost % too high?
McDonald's' current 5-Year Yield-on-Cost % of 3.81 is 15% above median its 10-year median of 3.30. Over the past 10 years, this metric has ranged from a low of 2.82 to a high of 4.67. The Restaurants industry median 5-Year Yield-on-Cost % is 2.75. McDonald's' value of 3.81 is 38.5% above this industry median. Based on the distribution chart, McDonald's ranks #69 out of 188 companies in the Restaurants industry, which is above the industry midpoint. Overall, McDonald's has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does McDonald's' 5-Year Yield-on-Cost % compare to SBUX and YUM?
According to the Restaurants industry distribution chart, McDonald's ranks #69 out of 188 companies for 5-Year Yield-on-Cost %. This puts McDonald's in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 2.75. McDonald's' value of 3.81 is 38.5% above this benchmark. Historically, McDonald's' own 5-Year Yield-on-Cost % has ranged from 2.82 to 4.67 over the past decade. While the company's 10-year median is 3.30 vs. the industry median of 2.75, 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 5-Year Yield-on-Cost % for a Restaurants company?
The median 5-Year Yield-on-Cost % among Restaurants companies is 2.75, based on 188 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current 5-Year Yield-on-Cost % of 3.81 is 38.5% 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 Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on McDonald's and its competitors. For the Restaurants industry, the median 5-Year Yield-on-Cost % is 2.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current 5-Year Yield-on-Cost % is 3.81, which is 15% above median its own 10-year median of 3.30. 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?
Based on GuruFocus' analysis, McDonald's (MCD) is currently considered Modestly Undervalued. The stock's GF Value™ is $326.39, compared to a current price of $280.63 — trading 14% below its estimated fair value. The current 5-Year Yield-on-Cost % is 3.81, which is 15% above median its 10-year median of 3.30 and 38.5% above the Restaurants industry median of 2.75. 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 Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For McDonald's (MCD), the current 5-Year Yield-on-Cost % is 3.81 as of Jul. 05, 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 (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:
5-Year Yield-on-Cost %: 3.81 (15% above median its 10-year median of 3.30)
GF Value™: $326.39 vs. price of $280.63 (14% below fair value)
Industry Position: 38.5% above the Restaurants median (#69 of 188)
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 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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