McDonald's: Consistent Dividends And Premium Valuation Leave Limited Upside

McDonald's: Consistent Dividends And Premium Valuation Leave Limited Upside

MCD
Neutral
Market

Summary

McDonald's has raised its dividend for 48 consecutive years, supported by strong free cash flow and unmatched profitabil...

McDonald's has raised its dividend for 48 consecutive years, supported by strong free cash flow and unmatched profitability within the restaurant industry. Q2 2025 delivered solid results, with revenue up 5% and EPS rising 12% despite a challenging consumer environment. Valuation remains demanding, with forward P/E near 25x and EV/EBITDA at 19x, limiting upside compared to peers offering higher growth potential.