Price to Sales (P/S)
since 2005
Calculation
McDonald’s Corp., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenues1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 25, 2025 | 8.56 | = | 310.72 | ÷ | 36.28 | 36.28 | = | 25,920 | ÷ | 714,461,139 | |
| Feb 22, 2024 | 8.38 | = | 295.92 | ÷ | 35.31 | 35.31 | = | 25,494 | ÷ | 722,051,488 | |
| Feb 24, 2023 | 8.32 | = | 263.68 | ÷ | 31.69 | 31.69 | = | 23,183 | ÷ | 731,496,951 | |
| Feb 24, 2022 | 7.85 | = | 245.03 | ÷ | 31.23 | 31.23 | = | 23,223 | ÷ | 743,584,718 | |
| Feb 23, 2021 | 8.20 | = | 211.32 | ÷ | 25.76 | 25.76 | = | 19,208 | ÷ | 745,572,145 | |
| Feb 26, 2020 | 7.43 | = | 210.10 | ÷ | 28.27 | 28.27 | = | 21,077 | ÷ | 745,446,655 | |
| Feb 22, 2019 | 6.67 | = | 183.17 | ÷ | 27.47 | 27.47 | = | 21,025 | ÷ | 765,317,332 | |
| Feb 23, 2018 | 5.68 | = | 163.06 | ÷ | 28.72 | 28.72 | = | 22,820 | ÷ | 794,497,880 | |
| Mar 1, 2017 | 4.29 | = | 129.05 | ÷ | 30.06 | 30.06 | = | 24,622 | ÷ | 818,993,182 | |
| Feb 25, 2016 | 4.20 | = | 118.37 | ÷ | 28.19 | 28.19 | = | 25,413 | ÷ | 901,607,888 | |
| Feb 24, 2015 | 3.33 | = | 94.98 | ÷ | 28.55 | 28.55 | = | 27,441 | ÷ | 961,118,669 | |
| Feb 24, 2014 | 3.40 | = | 96.50 | ÷ | 28.39 | 28.39 | = | 28,106 | ÷ | 989,881,374 | |
| Feb 25, 2013 | 3.50 | = | 96.14 | ÷ | 27.49 | 27.49 | = | 27,567 | ÷ | 1,002,791,769 | |
| Feb 24, 2012 | 3.78 | = | 100.32 | ÷ | 26.51 | 26.51 | = | 27,006 | ÷ | 1,018,555,678 | |
| Feb 25, 2011 | 3.23 | = | 74.44 | ÷ | 23.08 | 23.08 | = | 24,075 | ÷ | 1,043,298,941 | |
| Feb 26, 2010 | 3.02 | = | 63.85 | ÷ | 21.14 | 21.14 | = | 22,745 | ÷ | 1,075,960,799 | |
| Feb 25, 2009 | 2.57 | = | 54.29 | ÷ | 21.12 | 21.12 | = | 23,522 | ÷ | 1,113,621,747 | |
| Feb 25, 2008 | 2.83 | = | 56.05 | ÷ | 19.79 | 19.79 | = | 22,787 | ÷ | 1,151,643,390 | |
| Feb 26, 2007 | 2.55 | = | 45.80 | ÷ | 17.94 | 17.94 | = | 21,586 | ÷ | 1,203,480,015 | |
| Feb 27, 2006 | 2.17 | = | 35.25 | ÷ | 16.28 | 16.28 | = | 20,460 | ÷ | 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.
- Share Price Trend
- The share price experienced a general upward trajectory over the analyzed period, starting at $35.25 and rising steadily to $310.72. There were noticeable increments each year, with some plateaus and minor declines around 2009 and 2013-2015, but the overall momentum remained positive, particularly accelerating from 2016 onwards.
- Sales Per Share Development
- Sales per share showed a consistent upward movement from $16.28 to $36.28 over the period, with some fluctuations. There was a steady increase until around 2012, followed by a slight decline and variability between 2013 and 2016. Subsequently, from 2017 onward, sales per share rose again, reaching its peak at the last date measured.
- Price-to-Sales (P/S) Ratio Dynamics
- The P/S ratio showed a marked increase throughout the period, starting at 2.17 and reaching 8.56 by the end. While the ratio generally rose, some fluctuations are evident, such as dips around 2009 and between 2013 to 2015. Post-2015, the ratio grew significantly, indicating that market valuation expanded faster than sales per share.
- Overall Insights
- The data reflects a strong growth in market valuation as seen in the rising share price and escalating P/S ratio. Sales per share also improved markedly over time, although with more moderate growth and occasional declines. The increasing P/S ratio suggests that investor expectations and confidence in future growth potential have heightened, especially in the later years. The relative stability in sales per share amidst a rising share price may indicate improved profitability, stronger brand positioning, or market optimism impacting valuation beyond pure sales growth.
Comparison to Competitors
McDonald’s Corp., P/S, long-term trends, comparison to competitors
| McDonald’s Corp. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | Starbucks Corp. | |
|---|---|---|---|---|---|
| Feb 25, 2025 | 8.56 | 8.01 | 6.94 | 6.89 | 3.08 |
| Feb 22, 2024 | 8.38 | 9.95 | 6.24 | 7.28 | 3.34 |
| Feb 24, 2023 | 8.32 | 10.04 | 5.35 | 5.14 | 3.49 |
| Feb 24, 2022 | 7.85 | 16.64 | 9.22 | 5.80 | 4.47 |
| Feb 23, 2021 | 8.20 | 37.16 | 14.73 | 7.26 | 4.67 |
| Feb 26, 2020 | 7.43 | — | 4.57 | 4.24 | 3.75 |
| Feb 22, 2019 | 6.67 | — | 5.91 | 3.31 | 3.42 |
| Feb 23, 2018 | 5.68 | — | 7.13 | 1.66 | 3.62 |
| Mar 1, 2017 | 4.29 | — | 7.47 | 2.94 | 3.81 |
| Feb 25, 2016 | 4.20 | — | 6.65 | 3.07 | 4.73 |
| Feb 24, 2015 | 3.33 | — | 7.49 | 5.10 | 3.55 |
| Feb 24, 2014 | 3.40 | — | 9.85 | 5.24 | 4.08 |
| Feb 25, 2013 | 3.50 | — | 6.60 | 3.64 | 2.73 |
| Feb 24, 2012 | 3.78 | — | 6.76 | 5.19 | 2.68 |
| Feb 25, 2011 | 3.23 | — | 7.33 | 4.49 | 2.14 |
| Feb 26, 2010 | 3.02 | — | 4.49 | 2.18 | 1.62 |
| Feb 25, 2009 | 2.57 | — | 1.82 | 1.29 | 0.60 |
| Feb 25, 2008 | 2.83 | — | 3.10 | 3.17 | 1.79 |
| Feb 26, 2007 | 2.55 | — | 1.78 | 2.56 | 3.55 |
| Feb 27, 2006 | 2.17 | — | 0.97 | 2.80 | 3.74 |
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).
Comparison to Sector (Consumer Services)
McDonald’s Corp., P/S, long-term trends, comparison to sector (consumer services)
| McDonald’s Corp. | Consumer Services | |
|---|---|---|
| Feb 25, 2025 | 8.56 | 6.14 |
| Feb 22, 2024 | 8.38 | 6.21 |
| Feb 24, 2023 | 8.32 | 5.87 |
| Feb 24, 2022 | 7.85 | 7.25 |
| Feb 23, 2021 | 8.20 | 9.11 |
| Feb 26, 2020 | 7.43 | 5.11 |
| Feb 22, 2019 | 6.67 | 5.02 |
| Feb 23, 2018 | 5.68 | 4.94 |
| Mar 1, 2017 | 4.29 | 4.60 |
| Feb 25, 2016 | 4.20 | 4.67 |
| Feb 24, 2015 | 3.33 | 4.15 |
| Feb 24, 2014 | 3.40 | 4.53 |
| Feb 25, 2013 | 3.50 | 3.63 |
| Feb 24, 2012 | 3.78 | 3.85 |
| Feb 25, 2011 | 3.23 | 3.31 |
| Feb 26, 2010 | 3.02 | 2.70 |
| Feb 25, 2009 | 2.57 | 1.93 |
| Feb 25, 2008 | 2.83 | 2.57 |
| Feb 26, 2007 | 2.55 | 2.77 |
| Feb 27, 2006 | 2.17 | 2.49 |
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).
Comparison to Industry (Consumer Discretionary)
McDonald’s Corp., P/S, long-term trends, comparison to industry (consumer discretionary)
| McDonald’s Corp. | Consumer Discretionary | |
|---|---|---|
| Feb 25, 2025 | 8.56 | 9.87 |
| Feb 22, 2024 | 8.38 | 2.62 |
| Feb 24, 2023 | 8.32 | 2.27 |
| Feb 24, 2022 | 7.85 | 3.56 |
| Feb 23, 2021 | 8.20 | 3.77 |
| Feb 26, 2020 | 7.43 | 2.33 |
| Feb 22, 2019 | 6.67 | 2.05 |
| Feb 23, 2018 | 5.68 | 2.06 |
| Mar 1, 2017 | 4.29 | 1.68 |
| Feb 25, 2016 | 4.20 | 1.57 |
| Feb 24, 2015 | 3.33 | 1.32 |
| Feb 24, 2014 | 3.40 | 1.33 |
| Feb 25, 2013 | 3.50 | 1.06 |
| Feb 24, 2012 | 3.78 | 0.97 |
| Feb 25, 2011 | 3.23 | 0.96 |
| Feb 26, 2010 | 3.02 | 0.92 |
| Feb 25, 2009 | 2.57 | 0.66 |
| Feb 25, 2008 | 2.83 | 0.79 |
| Feb 26, 2007 | 2.55 | 0.86 |
| Feb 27, 2006 | 2.17 | 0.79 |
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).