McDonald's Corporation (MCD) — Free Cash Flow Yield

Consumer Cyclical

McDonald's Corporation owns, operates, and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, frozen desserts, sundaes, soft serve cones, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates franchised restaurants under various structures, including conventional franchise, developmental license, or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago, Illinois.

MetricValue
FCF Yield3.7%
Consumer Cyclical Sector Avg FCF Yield5.1%
Annual Free Cash Flow$7.2B
Market Cap$193.1B
P/E Ratio22.2x

McDonald's Corporation's FCF yield of 3.7% is below the Consumer Cyclical sector average (5.1%).

Frequently Asked Questions

What is McDonald's Corporation's (MCD) free cash flow yield?

McDonald's Corporation's (MCD) free cash flow yield is 3.7%. That is below the Consumer Cyclical sector average (5.1%).

Is MCD's free cash flow yield good?

At 3.7%, MCD's free cash flow yield is considered weak — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.

How much free cash flow does McDonald's Corporation generate?

McDonald's Corporation generated $7.2B in free cash flow, against a market cap of $193.1B.

How is free cash flow yield calculated?

Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.

Data from public filings. Not investment advice. Calculate your own FCF yield →