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MCD McDonald's Corporation

McDonald's Corporation EV/EBITDA

Data as of June 01, 2026

EV/EBITDA

16.95

Enterprise Value

$252.10B

EBITDA (TTM)

$14.87B

Sector

Consumer Cyclical

How It's Calculated

EV/EBITDA = Enterprise Value ÷ EBITDA
16.95 = $252.10B ÷ $14.87B

What This Means

McDonald's Corporation's EV/EBITDA of 17.0 is in a moderate range for Consumer Cyclical.

About McDonald's Corporation

McDonald's Corporation (MCD) operates in the Consumer Cyclical sector, specifically in Restaurants. With a market capitalization of about $198.37B, it ranks as a large-cap stock โ€” a major established company.

Shares recently traded near $279.20, within a 52-week range of $271.98 to $341.75 (-18.3% from the high, +2.7% from the low). Beta of 0.44 indicates relatively lower volatility versus the market.

Trailing profit margin is about 31.6%, signaling a strong profit margin relative to many peers.

Understanding This Metric

EV/EBITDA is widely used when comparing companies with different debt loads because enterprise value includes net debt while EBITDA approximates operating cash earnings power. For McDonald's Corporation, the ratio should be read with growth, capex needs, and cycle position in Consumer Cyclical. Pair EV/EBITDA with free cash flow yield and net debt metrics before drawing conclusions โ€” especially when EBITDA is depressed or boosted by one-time items.

Using This Number in Practice

Near 16.95x EV/EBITDA, McDonald's Corporation (MCD) carries an elevated EV/EBITDA multiple that may embed growth expectations or scarcity within its peer set. Enterprise value of about $252.10B and EBITDA near $14.87B form the ratio โ€” adjust for one-time items before treating the headline multiple as comparable.

Credit and LBO workflows often sort names on EV/EBITDA before drilling into free cash flow and maintenance capex. Pair this view with the EV/EBITDA calculator and the MCD metrics hub for related valuation pages.

Sector Comparison

Among Consumer Cyclical names on our S&P 100 coverage, McDonald's Corporation's EV/EBITDA of 16.95 can be compared with peers such as AMZN (19.27), TSLA (144.99), BKNG (12.80). Sector context helps interpretation, but each company's growth profile and balance sheet differ โ€” use multiple metrics before drawing conclusions. View all Consumer Cyclical stocks.

Key Takeaways

Related Tools & Guides

Explore calculators and guides connected to this metric, or view all metrics for MCD.

Other MCD Metrics

Frequently Asked Questions

What is MCD's EV/EBITDA?

EV/EBITDA compares enterprise value to operating earnings before interest, taxes, depreciation, and amortization. McDonald's Corporation's ratio is about 16.95 โ€” common for comparing leveraged companies in Consumer Cyclical.

Is 16.95 high or low vs peers?

Among Consumer Cyclical peers (e.g. TSLA (144.99), F (27.35), SBUX (25.16)), MCD's 16.95 should be read with growth, capex, and debt levels.

When is EV/EBITDA misleading?

EBITDA ignores capex, working capital, and stock-based comp; negative or tiny EBITDA makes the ratio meaningless. Cross-check with free cash flow and net debt.

Calculate the ev/ebitda for any stock with our free calculator.

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Educational Disclaimer

This page displays publicly available market data for informational purposes only and should not be considered investment advice. Stock data may be delayed. Verify all data independently before making financial decisions.