What happened
McDonald's grew its quarterly profit faster than its sales, and six days later Dividend Data called the stock cheap. For holders, that gap means the company kept more of each dollar it took in.
In an 8-K filed Nov. 4, McDonald's reported revenue of $7.2 billion for the quarter ended Sept. 30, up 1.1% from the same quarter a year earlier. Net income rose 9.1% to $2.5 billion, and diluted earnings per share climbed 10.4% to $3.51.
Shares rose in the first session after the release. MCD closed at $280.22 on Nov. 4, up 6.5% from $263.04 on Nov. 3.
Dividend Data (@dividend_data) posted on X on Nov. 10.
"Against the last 10 years (median 25.5x), that looks cheap."
Read more: Mcdonalds (MCD) company research
Why it matters
OptimistFi's case is that McDonald's brand, franchise model, and property and royalty economics produce cash flow and EPS growth despite modest system sales growth.
Revenue and profit both rising from a year earlier is the kind of result that case rests on. For the fiscal year to Dec. 31, 2025, revenue was $26.89 billion, up 3.7% on the year before, with a net margin of 31.9%.
The stock still sits closer to its low than its high. It last closed at $281.55 on Nov. 9, 46% of the way from its 52-week low of $230.88 to its high of $341.06. The shares trade at 23.2 times the company's earnings over the last year.
The other side has a clear test. Persistent structural damage to traffic or franchise royalties, materially lowering operating income and cash flow and forcing sustained capital-return cuts, would break it.
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What's next
The company's next quarterly report would show whether revenue and net income keep rising from a year earlier.
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Sources
- @dividend_data on X, November 10, 2026 — A post this story checks
- MCDONALDS CORP results release (SEC Form 8-K), November 4, 2026 — November 4, 2026
- Mcdonalds Corp on OptimistFi — Prices and the standing case
Explore OptimistFi research on Mcdonalds Corp: https://optimistfi.com/stocks/MCD
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
