McDonald’s Corporation is an American operator and franchisor of fast food restaurants represented worldwide and the biggest fast food company in the world.
P/E ratio for McDonald (MCD)
P/E ratio as of May 2024 (TTM): 23.9
According to McDonald's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 23.9276. At the end of 2022 the company had a P/E ratio of 31.3.
P/E ratio history for McDonald from 2001 to 2023
PE ratio at the end of each year
| Year | P/E ratio | Change |
|---|---|---|
| 2022 | 31.3 | 18.08% |
| 2021 | 26.5 | -21.5% |
| 2020 | 33.8 | 36.4% |
| 2019 | 24.8 | 6.69% |
| 2018 | 23.2 | -12.93% |
| 2017 | 26.7 | 21.04% |
| 2016 | 22.0 | -9.03% |
| 2015 | 24.2 | 25.82% |
| 2014 | 19.2 | 11.15% |
| 2013 | 17.3 | 6.46% |
| 2012 | 16.3 | -13.47% |
| 2011 | 18.8 | 14.07% |
| 2010 | 16.5 | 9.94% |
| 2009 | 15.0 | -7.46% |
| 2008 | 16.2 | -44.74% |
| 2007 | 29.3 | 90.41% |
| 2006 | 15.4 | -5.97% |
| 2005 | 16.4 | -7.08% |
| 2004 | 17.6 | -17.71% |
| 2003 | 21.4 | -6.82% |
| 2002 | 23.0 | 10.03% |
| 2001 | 20.9 |
P/E ratio for similar companies or competitors
| Company | P/E ratio | P/E ratio differencediff. | Country |
|---|---|---|---|
 Chipotle Mexican Grill CMG | 74.1 | 209.77% | 🇺🇸 USA |
 Starbucks SBUX | 20.9 | -12.79% | 🇺🇸 USA |
 Yum! Brands YUM | 25.2 | 5.51% | 🇺🇸 USA |
 Wendy’s Company WEN | 21.2 | -11.43% | 🇺🇸 USA |
 Jack in the Box
JACK | 8.37 | -65.02% | 🇺🇸 USA |
 Cracker Barrel CBRL | 12.8 | -46.54% | 🇺🇸 USA |
 Carrols Restaurant Group
TAST | -30.7 | -228.34% | 🇺🇸 USA |
 Brinker International
EAT | 17.2 | -28.13% | 🇺🇸 USA |
 Arcos Dorados Holdings
ARCO | 13.8 | -42.44% | Uruguay |
How to read a P/E ratio?
The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.
Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.