Price to Operating Profit (P/OP)
since 2005
Calculation
McDonald’s Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 25, 2025 | 18.95 | = | 310.72 | ÷ | 16.39 | 16.39 | = | 11,712 | ÷ | 714,461,139 | |
| Feb 22, 2024 | 18.35 | = | 295.92 | ÷ | 16.13 | 16.13 | = | 11,647 | ÷ | 722,051,488 | |
| Feb 24, 2023 | 20.58 | = | 263.68 | ÷ | 12.81 | 12.81 | = | 9,371 | ÷ | 731,496,951 | |
| Feb 24, 2022 | 17.59 | = | 245.03 | ÷ | 13.93 | 13.93 | = | 10,356 | ÷ | 743,584,718 | |
| Feb 23, 2021 | 21.51 | = | 211.32 | ÷ | 9.82 | 9.82 | = | 7,324 | ÷ | 745,572,145 | |
| Feb 26, 2020 | 17.27 | = | 210.10 | ÷ | 12.17 | 12.17 | = | 9,070 | ÷ | 745,446,655 | |
| Feb 22, 2019 | 15.89 | = | 183.17 | ÷ | 11.53 | 11.53 | = | 8,823 | ÷ | 765,317,332 | |
| Feb 23, 2018 | 13.56 | = | 163.06 | ÷ | 12.02 | 12.02 | = | 9,553 | ÷ | 794,497,880 | |
| Mar 1, 2017 | 13.65 | = | 129.05 | ÷ | 9.46 | 9.46 | = | 7,745 | ÷ | 818,993,182 | |
| Feb 25, 2016 | 14.94 | = | 118.37 | ÷ | 7.93 | 7.93 | = | 7,146 | ÷ | 901,607,888 | |
| Feb 24, 2015 | 11.48 | = | 94.98 | ÷ | 8.27 | 8.27 | = | 7,949 | ÷ | 961,118,669 | |
| Feb 24, 2014 | 10.90 | = | 96.50 | ÷ | 8.85 | 8.85 | = | 8,764 | ÷ | 989,881,374 | |
| Feb 25, 2013 | 11.20 | = | 96.14 | ÷ | 8.58 | 8.58 | = | 8,605 | ÷ | 1,002,791,769 | |
| Feb 24, 2012 | 11.98 | = | 100.32 | ÷ | 8.37 | 8.37 | = | 8,530 | ÷ | 1,018,555,678 | |
| Feb 25, 2011 | 10.39 | = | 74.44 | ÷ | 7.16 | 7.16 | = | 7,473 | ÷ | 1,043,298,941 | |
| Feb 26, 2010 | 10.04 | = | 63.85 | ÷ | 6.36 | 6.36 | = | 6,841 | ÷ | 1,075,960,799 | |
| Feb 25, 2009 | 9.38 | = | 54.29 | ÷ | 5.79 | 5.79 | = | 6,443 | ÷ | 1,113,621,747 | |
| Feb 25, 2008 | 16.64 | = | 56.05 | ÷ | 3.37 | 3.37 | = | 3,879 | ÷ | 1,151,643,390 | |
| Feb 26, 2007 | 12.40 | = | 45.80 | ÷ | 3.69 | 3.69 | = | 4,445 | ÷ | 1,203,480,015 | |
| Feb 27, 2006 | 11.01 | = | 35.25 | ÷ | 3.20 | 3.20 | = | 4,022 | ÷ | 1,256,645,011 |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of McDonald’s Corp. Annual Report.
The share price exhibited a consistent upward trend throughout the analyzed period, starting from $35.25 in 2006 and reaching $310.72 by 2025. Despite minor fluctuations, such as a slight decline from 2012 to 2013 and minor dips in subsequent years, the overall trajectory indicates steady growth in market valuation over the long term.
Operating profit per share showed a general increase from $3.20 in 2006, peaking at various points like $12.17 in 2020 and reaching $16.39 in 2025. The data reveals some volatility, with temporary declines observed in years such as 2008, 2015, and 2021, but the prevailing pattern is that of growth, suggesting improving profitability per share over the period.
The Price to Operating Profit (P/OP) ratio fluctuated significantly, beginning at 11.01 in 2006 and experiencing both increases and decreases over time. Notably, it reached a low of 9.38 in 2009 and peaked at 21.51 in 2021. This variability indicates changing market expectations relative to operating profit, with periods where the share price was valued higher relative to the operating profit per share, as well as periods of more modest valuation multiples.
- Share Price
- Displayed strong and sustained growth from 2006 to 2025, increasing nearly ninefold, indicating increasing investor confidence and potentially strong company performance or market positioning.
- Operating Profit per Share
- Generally increased, demonstrating enhanced operational profitability and efficiency, despite intermittent decreases.
- Price to Operating Profit Ratio (P/OP)
- Reflected volatility, suggesting fluctuating market sentiment and valuation standards in relation to the company´s operational earnings. The elevated ratio in recent years implies investors might be pricing in future growth prospects or other positive expectations beyond current profits.
Overall, the data portrays a company experiencing growth in market value and profitability, with valuation multiples suggesting varied investor sentiment yet generally increasing optimism reflected in rising share prices relative to operating profit.
Comparison to Competitors
McDonald’s Corp., P/OP, long-term trends, comparison to competitors
| McDonald’s Corp. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | Starbucks Corp. | |
|---|---|---|---|---|---|
| Feb 25, 2025 | 18.95 | 34.83 | 21.80 | 40.67 | 20.60 |
| Feb 22, 2024 | 18.35 | 65.01 | 22.85 | 46.13 | 20.44 |
| Feb 24, 2023 | 20.58 | 46.78 | 17.91 | 38.25 | 24.35 |
| Feb 24, 2022 | 17.59 | 232.24 | 40.46 | 54.38 | 26.68 |
| Feb 23, 2021 | 21.51 | — | — | 149.81 | 70.29 |
| Feb 26, 2020 | 17.27 | — | 12.89 | 53.41 | 24.39 |
| Feb 22, 2019 | 15.89 | — | 16.06 | 62.41 | 21.78 |
| Feb 23, 2018 | 13.56 | — | 19.92 | 27.44 | 19.59 |
| Mar 1, 2017 | 13.65 | — | 27.61 | 331.70 | 19.46 |
| Feb 25, 2016 | 14.94 | — | 18.81 | 18.10 | 25.18 |
| Feb 24, 2015 | 11.48 | — | 20.59 | 29.50 | 18.97 |
| Feb 24, 2014 | 10.90 | — | 27.73 | 31.59 | — |
| Feb 25, 2013 | 11.20 | — | 18.97 | 21.82 | 18.15 |
| Feb 24, 2012 | 11.98 | — | 21.06 | 33.58 | 18.12 |
| Feb 25, 2011 | 10.39 | — | 28.74 | 28.63 | 16.12 |
| Feb 26, 2010 | 10.04 | — | 22.32 | 16.27 | 28.21 |
| Feb 25, 2009 | 9.38 | — | 11.86 | 13.85 | 12.31 |
| Feb 25, 2008 | 16.64 | — | 31.71 | 31.86 | 15.97 |
| Feb 26, 2007 | 12.40 | — | 32.23 | 33.99 | 30.91 |
| Feb 27, 2006 | 11.01 | — | 26.02 | 56.69 | 30.54 |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).