McDonald’s Corp., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	8,223)	8,469)	6,177)	7,545)	4,731)
Net noncash charges	1,662)	1,251)	1,854)	1,142)	1,747)
Changes in working capital items	(438)	(108)	(645)	454)	(212)
Cash provided by operations	9,447)	9,612)	7,387)	9,142)	6,265)
Interest paid, net of tax¹	1,211)	1,036)	934)	990)	875)
Capitalized interest, net of tax²	17)	12)	7)	6)	5)
Capital expenditures	(2,775)	(2,357)	(1,899)	(2,040)	(1,641)
Free cash flow to the firm (FCFF)	7,900)	8,302)	6,429)	8,097)	5,504)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

^{1, 2} See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the McDonald’s Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	McDonald’s Corp. FCFF increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

McDonald’s Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR¹	20.50%	19.50%	21.10%	17.30%	23.00%
Interest Paid, Net of Tax
Interest paid, before tax	1,523)	1,287)	1,184)	1,197)	1,136)
Less: Interest paid, tax²	312)	251)	250)	207)	261)
Interest paid, net of tax	1,211)	1,036)	934)	990)	875)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	22)	15)	10)	7)	6)
Less: Capitalized interest, tax³	5)	3)	2)	1)	1)
Capitalized interest, net of tax	17)	12)	7)	6)	5)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

² 2024 Calculation
Interest paid, tax = Interest paid × EITR
= 1,523 × 20.50% = 312

³ 2024 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 22 × 20.50% = 5

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McDonald’s Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	262,525)
Free cash flow to the firm (FCFF)	7,900)
Valuation Ratio
EV/FCFF	33.23
Benchmarks
EV/FCFF, Competitors¹
Airbnb Inc.	15.74
Booking Holdings Inc.	18.06
Chipotle Mexican Grill Inc.	44.13
Starbucks Corp.	33.15
EV/FCFF, Sector
Consumer Services	25.89
EV/FCFF, Industry
Consumer Discretionary	36.15

Based on: 10-K (reporting date: 2024-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

McDonald’s Corp., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	261,117)	250,011)	227,523)	213,114)	191,546)
Free cash flow to the firm (FCFF)²	7,900)	8,302)	6,429)	8,097)	5,504)
Valuation Ratio
EV/FCFF³	33.05	30.11	35.39	26.32	34.80
Benchmarks
EV/FCFF, Competitors⁴
Airbnb Inc.	17.91	23.35	22.46	42.36	—
Booking Holdings Inc.	19.06	17.62	14.11	36.39	—
Chipotle Mexican Grill Inc.	49.96	57.71	51.53	50.61	146.36
Starbucks Corp.	32.92	32.25	42.44	28.09	281.97
EV/FCFF, Sector
Consumer Services	26.84	26.60	27.99	31.26	115.64
EV/FCFF, Industry
Consumer Discretionary	41.92	33.08	50.80	60.24	46.23

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 261,117 ÷ 7,900 = 33.05

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	McDonald’s Corp. EV/FCFF ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

McDonald’s Corp. (NYSE:MCD)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical