Is MCDONALDS CORP (MCD) Halal?

NYSE Consumer Cyclical United States $218.3B
✓ HALAL
Confidence: 83/100
MCDONALDS CORP (MCD) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 22.2% against the AAOIFI threshold of 30%, MCDONALDS CORP comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Restaurants), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 22.2%
/ 30%
0.5%
/ 30%
1.0%
/ 30%
N/A ✓ HALAL
DJIM 22.2%
/ 33%
0.5%
/ 33%
1.0%
/ 33%
N/A ✓ HALAL
MSCI 94.1%
/ 33%
2.0%
/ 33%
4.3%
/ 33%
N/A ✗ NOT HALAL
S&P 22.2%
/ 33%
0.5%
/ 33%
1.0%
/ 33%
N/A ✓ HALAL
FTSE 94.1%
/ 33%
2.0%
/ 33%
4.3%
/ 50%
N/A ✗ NOT HALAL

Financial Highlights

P/E Ratio
25.6
Forward: 21.3
EPS
$11.96
Dividend Yield
243.0%
Payout: 60.0%
P/B Ratio
-121.4
EV/EBITDA
18.6
EV: $271.4B
Beta
0.5
Low volatility
Current Ratio
1.0

Profitability

Gross Margin 57.4%
Operating Margin 45.1%
Net Margin 31.9%
Return on Assets (ROA) 13.5%

Cash Flow & Balance Sheet

Operating Cash Flow$9.4B
Free Cash Flow$6.7B
Total Debt$51.9B
Current Ratio1.0
Total Assets$55.2B

Price & Trading

Last Close$308.93
50-Day MA$321.27
200-Day MA$308.52
Avg Volume3.2M
Beta0.5
52-Week Range
$283.47
$341.75

About MCDONALDS CORP (MCD)

CEO
Mr. Christopher J. Kempczinski
Employees
150,000
Sector
Consumer Cyclical
Industry
Restaurants
Country
United States
Exchange
NYSE
Market Cap
$218.3B
Currency
USD

McDonald's Corporation owns, operates, and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, frozen desserts, sundaes, soft serve cones, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates franchised restaurants under various structures, including conventional franchise, developmental license, or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago, Illinois.

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Frequently Asked Questions

Is MCDONALDS CORP (MCD) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), MCDONALDS CORP is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is MCDONALDS CORP's debt ratio?

MCDONALDS CORP's debt ratio is 22.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 94.1%.

What are MCDONALDS CORP's key financial metrics?

MCDONALDS CORP has a market capitalization of $218.3B, trailing P/E ratio of 25.6. The company maintains a gross margin of 57.4% and a net margin of 31.9%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.