Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

McDonald’s Corp., EBITDA calculation

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	8,468,800)	6,177,400)	7,545,200)	4,730,500)	6,025,400)
Add: Income tax expense	2,053,400)	1,648,000)	1,582,700)	1,410,200)	1,992,700)
Earnings before tax (EBT)	10,522,200)	7,825,400)	9,127,900)	6,140,700)	8,018,100)
Add: Interest expense, net of capitalized interest	1,360,800)	1,207,000)	1,185,800)	1,218,100)	1,121,900)
Earnings before interest and tax (EBIT)	11,883,000)	9,032,400)	10,313,700)	7,358,800)	9,140,000)
Add: Depreciation and amortization	1,978,200)	1,870,600)	1,868,100)	1,751,400)	1,617,900)
Earnings before interest, tax, depreciation and amortization (EBITDA)	13,861,200)	10,903,000)	12,181,800)	9,110,200)	10,757,900)

Based on: 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).

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Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	McDonald’s Corp. EBITDA decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

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

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	233,526,538)
Earnings before interest, tax, depreciation and amortization (EBITDA)	13,861,200)
Valuation Ratio
EV/EBITDA	16.85
Benchmarks
EV/EBITDA, Competitors¹
Airbnb Inc.	44.05
Booking Holdings Inc.	17.71
Carnival Corp. & plc	10.95
Chipotle Mexican Grill Inc.	44.46
Starbucks Corp.	15.04
EV/EBITDA, Sector
Consumer Services	19.05
EV/EBITDA, Industry
Consumer Discretionary	18.03

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

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

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

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	250,010,976)	227,522,516)	213,114,063)	191,545,606)	189,897,042)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	13,861,200)	10,903,000)	12,181,800)	9,110,200)	10,757,900)
Valuation Ratio
EV/EBITDA³	18.04	20.87	17.49	21.03	17.65
Benchmarks
EV/EBITDA, Competitors⁴
Airbnb Inc.	40.65	36.61	338.63	—	—
Booking Holdings Inc.	19.60	19.20	45.39	73.17	10.49
Carnival Corp. & plc	11.16	—	—	—	8.11
Chipotle Mexican Grill Inc.	36.37	29.62	40.00	79.88	34.03
Starbucks Corp.	17.75	19.88	18.77	38.99	17.27
EV/EBITDA, Sector
Consumer Services	19.80	26.04	36.44	234.32	14.59
EV/EBITDA, Industry
Consumer Discretionary	17.81	20.07	22.01	30.96	17.37

Based on: 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).

¹ See details »

² See details »

³ 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 250,010,976 ÷ 13,861,200 = 18.04

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/EBITDA	Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock.	McDonald’s Corp. EV/EBITDA ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

McDonald’s Corp. (NYSE:MCD)

Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical