Collects royalties and rent from a largely franchised restaurant system rather than operating most of the restaurants itself.
McDonald’s (MCD) scores 6.6 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on profitability, and growth is what holds it back.
Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
McDonald’s’s returns on capital beat their cost in almost every measured year, by a clear margin: 3 of 4 indicators passed.
Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →
Franchising turns a restaurant chain into something closer to a property and royalty business, which is why profitability and predictability score the way they do. The complication is a balance sheet run with negative equity after decades of buybacks, so equity-based ratios stop meaning anything and coverage metrics have to carry the solvency pillar instead. A good demonstration of why five pillars beat one number.
McDonald’s (MCD) has a Lemma Quality Score of 6.6 out of 10 as of October 17, 2026, which reads as solid quality. A solid reading is a respectable business with clear strengths and at least one area that falls short of the best in its field. Five pillars feed it, and every one of them is computed from what the company reported rather than from its share price.
Set against 179 Consumer Discretionary companies, McDonald’s lands at the 81st percentile, among the stronger quarter of the group. For reference, the middle of the group scores 5.0 and a company needs 6.1 to reach its top quarter, which leaves McDonald’s well above the median.
McDonald’s’s profitability score is 9.8 out of 10 (strong). Against a median of 5.1 among 176 Consumer Discretionary companies, that is well above the group and the 98th percentile. Returns and margins at this level leave room to reinvest, absorb a bad year or return cash to shareholders without straining the business.
Solvency scores 5.9 out of 10, which reads as average. The median across 141 Consumer Discretionary companies is 5.9, so McDonald’s is in line with its peers on this pillar and ranks at the 51st percentile. An average solvency reading suggests debt is present but manageable, the normal state for a company that borrows to fund its operations.
On growth, McDonald’s scores 3.9, a weak reading. Its peers have a median of 4.0 across 149 Consumer Discretionary companies, which places it in line with them, at the 47th percentile. Weak growth means revenue and earnings have been flat or shrinking against peers, which can be cyclical or a sign of a market that is maturing.
Efficiency scores 5.0 out of 10, which reads as average. The median across 170 Consumer Discretionary companies is 6.2, so McDonald’s is below its peers on this pillar and ranks at the 33rd percentile. Middling efficiency is unremarkable on its own, though improvements here tend to show up in free cash flow first.
On predictability, McDonald’s scores 7.2, a strong reading. Its peers have a median of 5.0 across 178 Consumer Discretionary companies, which places it well above them, at the 86th percentile. A strong predictability score rewards consistency: revenue and earnings that rarely surprise in either direction.
This is a lopsided profile. Profitability scores 9.8 but growth only 3.9, a gap of 5.9 points, so the overall hides a business that is excellent in one respect and weak in another. Leading with profitability is the most valuable kind of strength, because margins and returns are what the other pillars ultimately feed. A growth shortfall often comes with size or a maturing market, and is less of a concern if the other pillars are strong.
Closing the gap on efficiency would do the most for the overall. At the median of Consumer Discretionary companies, 6.2, McDonald’s would score about 6.8 instead of 6.6. All five pillars could be scored, so the overall uses the full set of weights out of 100: profitability 25, solvency 20, growth 20, efficiency 15, predictability 20.
These are the Consumer Discretionary companies closest to McDonald’s in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.
How much profit the company generates from its capital and sales.
The company’s ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.
This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.
Educational only. Not investment advice.
On this reading McDonald’s scores 6.6 out of 10, which reads as solid quality. Its strongest pillar is profitability, its weakest is growth. Quality is not the same as a good investment: the score says nothing about the price you would pay.
McDonald’s ranks at the 81st percentile of the 179 Consumer Discretionary companies Lemma publishes a score for. The median there is 5.0 and the top quarter starts at 6.1, against McDonald’s’s 6.6.
Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.
This page last changed on October 17, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for MCD are in the app.
No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.
Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.
Free to start · No credit card