Question 1

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

Accepted Answer

McDonald's (MCD) P/S ratio is 6.9× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month revenue, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/S ratio calculated?

Accepted Answer

P/S = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Revenue, or equivalently Share Price ÷ TTM Revenue Per Share. 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/S ratio?

Accepted Answer

The price-to-sales (P/S) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) revenue. It is calculated as market cap ÷ TTM revenue (equivalent to share price ÷ TTM revenue per share). Because the denominator (revenue) cannot be negative, P/S is widely used to value unprofitable or pre-profit companies and to make cross-sector comparisons.

Question 4

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

Accepted Answer

A "good" P/S depends heavily on profit margin and growth: software and other high-margin businesses often command 5–15× sales, while low-margin retailers and commodity producers typically trade below 1×. Compare against sector peers rather than absolute thresholds. For McDonald's specifically, the relevant sector benchmark is the current sector median of 1.8×.

Question 5

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

Accepted Answer

McDonald's's P/S ratio of 6.9× is below its own 5-year average of 8.1× and above the sector median of 1.8×. That places the current reading at the 0th 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/S ratio range?

Accepted Answer

In the available daily series, McDonald's (MCD) P/S ratio has ranged from a low of 1.2× in 2003 to a high of 9.5× in 2023. The 5-year average is 8.1× and the 5-year median is 8.0×.

Question 7

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

Accepted Answer

McDonald's (MCD) P/S ratio at the end of 2025 was 8.1×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month revenue figure available at that date.

Question 8

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

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (revenue). 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	$26.9B	8.1×	+0.1×	Dec 31, 2025
2024	$207B	$25.9B	8.0×	-0.4×	Dec 31, 2024
2023	$215B	$25.5B	8.4×	+0.1×	Dec 31, 2023
2022	$193B	$23.2B	8.3×	-0.3×	Dec 31, 2022
2021	$200B	$23.2B	8.6×	+0.3×	Dec 31, 2021
2020	$160B	$19.2B	8.3×	+1.4×	Dec 31, 2020
2019	$147B	$21.3B	6.9×	+0.4×	Dec 31, 2019
2018	$136B	$21B	6.5×	+0.5×	Dec 31, 2018
2017	$137B	$22.8B	6.0×	+1.9×	Dec 31, 2017
2016	$99.6B	$24.6B	4.0×	-0.2×	Dec 31, 2016
2015	$107B	$25.4B	4.2×	+0.9×	Dec 31, 2015
2014	$90.2B	$27.4B	3.3×	-0.1×	Dec 31, 2014
2013	$96.1B	$28.1B	3.4×	+0.2×	Dec 31, 2013
2012	$88.4B	$27.6B	3.2×	-0.6×	Dec 31, 2012
2011	$102B	$27B	3.8×	+0.5×	Dec 31, 2011
2010	$79.6B	$24.1B	3.3×	+0.4×	Dec 31, 2010
2009	$67.2B	$22.7B	3.0×	+0.0×	Dec 31, 2009
2008	$68.6B	$23.5B	2.9×	-0.0×	Dec 31, 2008
2007	$67.5B	$22.8B	3.0×	+0.4×	Dec 31, 2007
2006	$53.2B	$20.8B	2.6×	+0.5×	Dec 31, 2006
2005	$42.3B	$20.5B	2.1×	-0.1×	Dec 31, 2005
2004	$40.5B	$19.1B	2.1×	+0.3×	Dec 31, 2004
2003	$31.3B	$17.1B	1.8×	+0.5×	Dec 31, 2003
2002	$20.4B	$15.4B	1.3×	—	Dec 31, 2002


D.R. Horton (DHI)	1.4×
Carnival Corporation (CCL)	1.4×
Lululemon Athletica (LULU)	1.3×
Toll Brothers (TOL)	1.2×
Li Auto (LI)	1.2×
Ball (BALL)	1.2×
Weyco Group (WEYS)	1.1×
NIO (NIO)	1.1×
Amcor (AMCR)	0.9×
Norwegian Cruise Line (NCLH)	0.9×
XPeng (XPEV)	0.8×
Smurfit Westrock (SW)	0.7×
V.F. (VFC)	0.7×
Lennar (LEN)	0.7×
Genuine Parts (GPC)	0.6×
KB Home (KBH)	0.6×
Mohawk Industries (MHK)	0.5×
LKQ (LKQ)	0.5×
MGM Resorts (MGM)	0.5×
Polaris (PII)	0.4×
General Motors (GM)	0.4×
ChargePoint Holdings (CHPT)	0.4×
Leggett & Platt (LEG)	0.3×
Best Buy Co. (BBY)	0.3×
Ford Motor (F)	0.2×

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

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

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

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

McDonald's P/S Ratio by Year

McDonald's P/S Ratio 2025: 8.1×

McDonald's P/S Ratio 2024: 8.0×

McDonald's P/S Ratio 2023: 8.4×

McDonald's P/S Ratio 2022: 8.3×

McDonald's P/S Ratio 2021: 8.6×

Sector peers by P/S Ratio — chart

Sector peers by P/S Ratio — table

Frequently asked questions

McDonald's (MCD) Key Financials