Question 1

What is McDonald's's P/E ratio?

Accepted Answer

McDonald's (MCD) P/E ratio is 21.7× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

What is a good P/E ratio for McDonald's?

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For McDonald's specifically, the relevant sector benchmark is the current sector median of 21.7×.

Question 5

Is McDonald's's P/E ratio high or low?

Accepted Answer

McDonald's's P/E ratio of 21.7× is below its own 5-year average of 26.1× and below the sector median of 21.7×. That places the current reading at the 2th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is McDonald's's historical P/E ratio range?

Accepted Answer

In the available daily series, McDonald's (MCD) P/E ratio has ranged from a low of 13.9× in 2009 to a high of 35.8× in 2021. The 5-year average is 26.1× and the 5-year median is 25.6×.

Question 7

What was McDonald's's P/E ratio in 2025?

Accepted Answer

McDonald's (MCD) P/E ratio at the end of 2025 was 25.5×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

Why does McDonald's's P/E ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$218B	$8.56B	25.5×	+0.3×	Dec 31, 2025
2024	$207B	$8.22B	25.2×	-0.1×	Dec 31, 2024
2023	$215B	$8.47B	25.3×	-5.9×	Dec 31, 2023
2022	$193B	$6.18B	31.2×	+4.8×	Dec 31, 2022
2021	$200B	$7.55B	26.5×	-7.4×	Dec 31, 2021
2020	$160B	$4.73B	33.8×	+9.3×	Dec 31, 2020
2019	$147B	$6.03B	24.5×	+1.5×	Dec 31, 2019
2018	$136B	$5.92B	23.0×	-3.3×	Dec 31, 2018
2017	$137B	$5.19B	26.3×	+5.1×	Dec 31, 2017
2016	$99.6B	$4.69B	21.3×	-2.4×	Dec 31, 2016
2015	$107B	$4.53B	23.7×	+4.7×	Dec 31, 2015
2014	$90.2B	$4.76B	19.0×	+1.8×	Dec 31, 2014
2013	$96.1B	$5.59B	17.2×	+1.0×	Dec 31, 2013
2012	$88.4B	$5.46B	16.2×	-2.3×	Dec 31, 2012
2011	$102B	$5.5B	18.5×	+2.4×	Dec 31, 2011
2010	$79.6B	$4.95B	16.1×	+1.3×	Dec 31, 2010
2009	$67.2B	$4.55B	14.8×	-1.1×	Dec 31, 2009
2008	$68.6B	$4.31B	15.9×	-12.3×	Dec 31, 2008
2007	$67.5B	$2.4B	28.2×	+13.2×	Dec 31, 2007
2006	$53.2B	$3.54B	15.0×	-1.2×	Dec 31, 2006
2005	$42.3B	$2.6B	16.3×	-1.5×	Dec 31, 2005
2004	$40.5B	$2.28B	17.8×	-3.5×	Dec 31, 2004
2003	$31.3B	$1.47B	21.3×	-1.5×	Dec 31, 2003
2002	$20.4B	$894M	22.8×	—	Dec 31, 2002


Avery Dennison (AVY)	19.3×
Darden Restaurants (DRI)	19.1×
Williams-Sonoma (WSM)	19.1×
Expedia Group (EXPE)	18.9×
Domino's Pizza (DPZ)	17.7×
Etsy (ETSY)	16.9×
Ball (BALL)	16.8×
Royal Caribbean Cruises (RCL)	16.6×
GameStop (GME)	15.6×
D.R. Horton (DHI)	15.3×
Norwegian Cruise Line (NCLH)	15.0×
Hasbro (HAS)	15.0×
NVR (NVR)	14.8×
LKQ (LKQ)	14.5×
Mohawk Industries (MHK)	14.3×
Deckers Outdoor (DECK)	13.8×
Lennar (LEN)	13.5×
Weyco Group (WEYS)	12.8×
Carnival Corporation (CCL)	12.4×
KB Home (KBH)	11.7×
Best Buy Co. (BBY)	11.1×
PDD Holdings (PDD)	10.7×
Toll Brothers (TOL)	10.5×
Lululemon Athletica (LULU)	10.2×
Leggett & Platt (LEG)	6.1×

P/E Ratio for McDonald's (MCD) 2002-2026

P/E Ratio daily chart for McDonald's (MCD)

Historical P/E Ratio for McDonald's (MCD) from 2002 to 2025

About P/E Ratio at McDonald's (MCD)

McDonald's P/E Ratio by Year

McDonald's P/E Ratio 2025: 25.5×

McDonald's P/E Ratio 2024: 25.2×

McDonald's P/E Ratio 2023: 25.3×

McDonald's P/E Ratio 2022: 31.2×

McDonald's P/E Ratio 2021: 26.5×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

McDonald's (MCD) Key Financials