Should I buy McDonald's stock in 2025?

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At HelloSafe, our expert has been monitoring McDonald's performance for more than three years. Each month, hundreds of thousands of users across Canada trust us to interpret market trends and uncover the best investment opportunities. Our analyses are provided solely for informational purposes and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by McDonald's.

What is McDonald's?

How much is McDonald's stock?

The price of McDonald's stock is declining this week. As of April 30, 2025, MCD is trading at $314.50 USD, showing a 24-hour change of -0.73% (-$2.31) and a weekly decline of -1.44%. The company maintains a robust market capitalization of $224.89 billion, with an average daily volume of 3.8 million shares traded over the past three months. McDonald's features a P/E ratio of 27.61, a dividend yield of 2.25%, and a beta of 0.62, reflecting lower volatility than the broader market.

While short-term movements indicate some weakness, the stock’s stability and consistent dividends continue to make it attractive for Canadian investors seeking reliable long-term growth.

Our full analysis on McDonald's stock

After reviewing McDonald's latest financial results and closely analyzing its stock performance over the past three years, we combined proprietary quantitative models with insights from global financial indicators, technical signals, competitive positioning, and evolving sector trends. This multifaceted approach reveals McDonald's as a distinctive force within the global quick-service restaurant landscape, underpinned by operational resilience and strategic innovation. So, why might McDonald's stock once again become a strategic entry point into the consumer cyclical sector in 2025?

Recent Performance and Market Context

McDonald’s stock (NYSE: MCD) has delivered a robust performance, reaffirming its place as a cornerstone holding in many diversified portfolios. Over the trailing 12 months, shares have appreciated by 14.6%, rebounding well from 2022 sector-wide uncertainties and outperforming several restaurant-industry peers. The stock currently trades at $314.50, only modestly off its 52-week high of $326.32, demonstrating a high degree of price stability and investor confidence. In the past six months, MCD is up 8.41%, handily beating the broader S&P 500 Consumer Discretionary sector over the same time frame.

Positive sentiment has been further bolstered by a steady dividend yield of 2.25% and a consistent record of annual increases, which appeals to income-centric investors in the current interest rate environment. Amid global economic fluctuations, McDonald’s resilience is evident—thanks to its vast international footprint (over 100 countries) and a franchise model that has proven adept at navigating inflation and local-market disruption. The company's operations generate solid cash flows despite sector headwinds, such as changing consumer preferences or fast-food competition, helping to reinforce its status as a "defensive growth" stock.

Macro trends also favor McDonald’s positioning: as consumer spending remains healthy in North America—particularly in Canada, whose quick-service market continues to expand—McDonald’s leverages both its affordability and strong digital engagement. Moreover, strategic investments in modernization and technology have insulated revenues and positioned the company to benefit from trends in mobile ordering, delivery, and digital loyalty platforms.

Technical Analysis

McDonald’s technical positioning is particularly noteworthy for investors seeking favorable entry points. The stock remains well-supported across key moving averages:

• 20-day Simple MA: $311.17 — reinforcing short-term support
• 50-day Simple MA: $308.37
• 100-day Simple MA: $299.70
• 200-day Simple MA: $292.02

Trading consistently above these benchmarks is a classic bullish signal—ratified by the technical consensus, which currently counts 14 bullish indicators versus just 3 bearish.

The Relative Strength Index (RSI 14) is 54.12, indicating neither overbought nor oversold conditions; this neutral reading suggests the current price level remains sustainable, with additional upside possible as buying momentum continues.

Momentum is further supported by the MACD (12,26,9) at 2.66 and a Williams %R of -29.04, both providing modest buy signals, while the ADX (14) at 13.25 reflects the development of a positive trend.

Notably, the stock is hovering just above important support levels around $314.70, $312.59, and $310.93—zones that present appealing risk/reward dynamics for new positions. On the upside, immediate resistance levels at $318.47 and $320.13 define milestones for the next potential breakout, with any clear move above these possibly inaugurating a fresh bull phase.

Overall, the technical structure invites constructive views on intermediate-term positioning and, importantly, suggests that downside is buffered by a confluence of moving average support.

Fundamental Analysis

A detailed review of McDonald’s financial position reveals a blend of solid profitability and strategically disciplined growth—a rare combination in today’s consumer sector.

• Revenue Growth and Profitability:
• For the full year 2024, McDonald’s reported revenues of $25.92 billion and net income of $8.22 billion, paired with a gross profit of $14.71 billion. EBITDA came in at an impressive $13.95 billion, up from 2023 despite flat headline sales and moderate, anticipated EPS contraction. While short-term revenue growth was flat in the latest quarter (Q4 2024 revenue of $6.39 billion, missing estimates slightly), operating leverage and disciplined cost controls supported a stable EPS ($2.80, up year-over-year).
• Valuation:
• At a trailing P/E of 27.61 and a forward P/E of 25.58, McDonald's trades at a premium to most restaurant peers—but, crucially, this reflects its superior brand strength, international diversification, and stable dividend policy. The PEG ratio of 2.78 and price/sales multiple of 8.76 point to a quality premium, justified by McDonald’s consistent free cash flow and defensive growth profile. Furthermore, McDonald’s forward PE is lower than its historical average of ~30x seen during pre-pandemic consumer growth cycles, suggesting current levels may still offer room for upside as earnings potentially reaccelerate during 2025.
• Structural Advantages:
• Global brand power and customer loyalty—often the envy of consumer peers
• Nearly 60,000 locations worldwide, delivering robust revenue streams
• Franchising model (over 39,000 franchised outlets), which insulates cash flows from direct-operator volatility
• Significant real estate holdings, strengthening asset-based equity value
• Leading digital capabilities (app-based promotions, personalized loyalty offers)

These structural strengths continue to buffer McDonald’s from cyclical shocks and grant it pricing power in both developed and emerging markets.

Volume and Liquidity

Trading activity remains healthy and consistent, with an average daily volume of 3.8 million shares over the past three months and a sizeable public float of 714.8 million shares. This strong liquidity profile instills confidence for both institutional and retail participants, reducing execution risk and supporting dynamic valuation.

Such trading consistency is often interpreted by market professionals as a sign of sustained investor trust, amplifying the stock’s suitability for both short-term traders seeking technical setups and long-term investors focused on capital preservation and compounding.

Catalysts and Positive Outlook

Looking ahead, several catalysts are poised to positively influence both operational results and market sentiment:

• Digital Transformation: Continued rollout of mobile ordering, digital loyalty programs, and third-party delivery partnerships across core and international markets is expected to improve operational efficiency and drive incremental customer engagement.
• Menu Innovation: The brand’s focus on limited-time offers, premium menu items, and value meal enhancements keeps customer traffic robust, while catering to evolving dietary trends (including healthier and plant-based options).
• International Expansion: Targeted investments in high-growth regions, particularly Asia-Pacific and EMEA, are anticipated to deliver meaningful topline acceleration as economic normalization takes hold.
• Restaurant Modernization: Upgrading store experiences with self-order kiosks and streamlined kitchen technology further differentiates McDonald's from competitors and expands throughput capacity.
• Robust Shareholder Returns: Commitment to dividend growth (current yield 2.25%) and potential share buybacks strengthen the investment case for income-focused portfolios.
• ESG and Sustainability: Ongoing efforts in sustainable sourcing, reduction in packaging waste, and energy efficiency initiatives align the company with global consumer and investor preferences, bolstering long-term brand reputation.

Moreover, the imminent Q1 2025 earnings release (expected May 1) represents a key near-term inflection point that could serve as a market-moving catalyst, particularly if management provides upbeat guidance or launches new digital/menu initiatives.

Investment Strategies

From a portfolio construction perspective, McDonald's presents attractive arguments for entry across varied time horizons:

• Short-term:
• The stock’s current positioning just above layered moving average supports ($311–314) offers a low-risk entry point, especially ahead of the upcoming earnings event.
• Recent consolidation within a tight trading range, paired with generally bullish technicals, increases probabilities for a positive post-earnings move.
• Medium-term:
• Digital era tailwinds, international expansion, and resilient cash flows support the case for holding through potential sector rotation or macro-volatility.
• Price targets from consensus analysts (average of $327.49, ~4.1% implied upside) suggest meaningful appreciation potential within 6–12 months, particularly if earnings growth surprises to the upside.
• Long-term:
• McDonald’s deep brand moat, consistent dividend growth, and entrenched market leadership make it a compelling core holding for income and growth-focused investors alike.
• Ongoing ESG improvements and further penetration of digital sales channels reinforce the company’s relevance in an evolving consumer landscape.

Investors seeking optimal risk/reward exposure may find current market levels—near strong technical supports and ahead of probable catalysts—especially beneficial for scaling positions ahead of renewed sector momentum.

Is it the Right Time to Buy McDonald’s?

In summary, McDonald’s stands out with enduring brand power, diversified global operations, and a uniquely resilient operating model. The stock’s technical momentum, attractive dividend yield, and steady earnings performance collectively present a favorable opportunity for renewed consideration—across both growth and income lenses.

While not without cyclical and sector-specific risks, McDonald’s premium valuation appears justified by its consistent financial strength, commitment to innovation, and disciplined return of capital. Technical signals point to the likelihood of a new bullish phase, especially as digital initiatives and international growth unfold in 2025.

For investors convinced by the case for durable, high-quality consumer names, McDonald’s seems to represent an excellent opportunity to gain exposure at a technically and fundamentally appealing juncture—backed by positive momentum and clear catalysts on the horizon. With its combination of dependable growth, shareholder rewards, and defensive attributes, McDonald’s stock may be entering a new chapter of leadership within the global consumer sector, inviting renewed interest from those seeking both stability and upside potential.

How to buy McDonald's stock in Canada?

Buying shares in McDonald’s is both simple and secure for Canadian investors, thanks to online platforms offered by regulated brokers. You can choose between two main methods: spot buying (direct share purchase for long-term holding), or trading via contracts-for-difference (CFDs) for short-term speculation and leverage. Each method has its own risks and advantages. Understanding the differences will help you decide which approach fits your financial goals. See our broker comparison further down the page to find platforms with competitive fees and robust investor protection.

Spot buying

A spot (cash) purchase means you buy McDonald’s (MCD) shares directly, becoming the owner of those shares, eligible for dividends and voting rights. Typically, Canadian online brokers charge a fixed commission per order, around $5 to $10 CAD.

Important Information

Example: Suppose McDonald’s shares are trading at $314.50 USD. With a $1,000 CAD investment (approximately $725 USD after exchange), and a $5 CAD brokerage fee, you could buy about 2 McDonald’s shares.

Gain scenario: If the share price climbs 10%, your 2 shares now total approximately $1,100 CAD in value.
Result: +$100 gross gain, or +10% on your original investment.

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on McDonald’s share price movements without owning the underlying shares. With CFDs, you can use leverage (borrowed money) to amplify potential gains—or losses. CFD trading typically involves fees such as a spread (difference between buy/sell price) and overnight financing if you hold positions open beyond one trading day.

Important Information

Example: You open a CFD position on McDonald's with $1,000 CAD and 5× leverage, giving you $5,000 CAD worth of market exposure.

Gain scenario: If McDonald’s stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on a $1,000 deposit (excluding fees like spread and overnight interest).

Final advice

Before investing, always compare broker fees, currency conversion costs, and terms to find the platform best suited to your needs. The right option—spot buying for long-term ownership, or CFDs for short-term trading—will depend on your risk tolerance, investment horizon, and goals. For more details, see our broker comparator below and make an informed choice tailored to your investment strategy.

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Our 7 tips for buying McDonald's stock

The latest news about McDonald's

McDonald's shares remain supported by strong technical buy signals and low volatility ahead of Q1 earnings. Trading as of April 30, 2025, McDonald's stock price hovers at $314.50, reflecting an 8.41% gain over the past six months and a 14.60% annual increase. The company's technical profile demonstrates resilience, with the price comfortably above all major moving averages and a consensus of 14 bullish versus 3 bearish technical indicators. Its low beta of 0.62 underlines reduced volatility compared to the broader market, a quality that tends to resonate with Canadian institutional investors seeking defensive international exposure. Market analysts are maintaining a generally optimistic stance, with a consensus price target of $327.49—representing more than 4% implied upside—which further contributes to a constructive outlook as the company readies its Q1 2025 earnings report scheduled for May 1st.

The McDonald's brand continues to expand its digital and delivery services—areas of key interest in the Canadian market. Recently, McDonald's has prioritized digital transformation and restaurant modernization, amplifying mobile ordering and delivery capabilities. In Canada, this strategy has driven increased adoption of McDelivery and app-based promotions, aligning well with local consumer preferences for convenience and contactless transactions. With high smartphone penetration and a supportive regulatory environment for food delivery in Canada, the company’s digital initiatives are expected to bolster customer engagement and sustain revenue growth in this region, making McDonald’s an example of a global brand tapping into local behavioral trends.

Dividend stability and payout growth remain a highlight for Canadian investors seeking reliable U.S. income stocks. McDonald’s continues to deliver shareholder-friendly policies, with a forward annual dividend yield of 2.25% and a well-covered payout ratio near 60%. With its most recent dividend paid on March 17, 2025, the stock maintains its reputation for consistent dividend growth, a key consideration for Canadian investors facing limited yield options in their home market. The company's stable, USD-denominated dividend stream is attractive particularly for Canadian pension funds and cross-border portfolios aiming to balance income with capital stability.

Operational momentum persists despite flat short-term revenue growth, with EBITDA and net income showcasing long-term strength. Though recent Q4 2024 revenue was flat year-over-year, McDonald's has grown its EBITDA by 3.76% and its net income remains robust at $2.017 billion. The company's franchised model—which dominates both its global and Canadian operations—provides cash flow resilience and margin protection, critical factors during periods of macroeconomic uncertainty such as those experienced in early 2025. For Canadian analysts benchmarking performance against local competitors and economic cycles, McDonald’s strong profitability metrics despite headwinds are a testament to the brand’s operational scalability and disciplined cost management.

McDonald’s ongoing menu innovation and promotional activities offer a positive signal for local traffic and engagement in Canada. The company's focus on limited-time offers, value-driven menu items, and localized product innovation continues to generate consumer interest, as seen in its Canadian market where specialty items, seasonal promotions, and region-specific flavors have been well received. These tactics support customer retention and frequent visits, helping buffer sales from broader economic volatility. As Canadian consumers become more value-conscious and fragmented in their tastes, McDonald’s agile marketing approach and supply chain flexibility provide lasting competitive advantages within the local context.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.