Is McDonald's Stock Halal? Fast Food and Islamic Finance

Quick Verdict

McDonald's (MCD) is generally considered NOT HALAL for Muslim investors. While McDonald's operates many halal-certified locations in Muslim-majority countries, the company as a whole sells pork products (McRib, bacon, etc.) as a core part of its menu, and some locations serve alcoholic beverages.

The "But I Eat There" Problem

Many Muslims eat at McDonald's — halal locations are common in the UK, Malaysia, UAE, and across Muslim-majority regions. But eating at a halal-certified McDonald's franchise is different from owning equity in McDonald's Corporation.

McDonald's Corporation is the franchisor. When you own MCD stock, you own a piece of the entire global McDonald's system — including all the non-halal locations serving McBacon burgers, pork sausage McMuffins, and alcohol in European markets.

The Revenue Breakdown

McDonald's is also primarily a real estate and franchise company — it owns the land and buildings that franchisees operate on. ~60% of McDonald's revenue comes from franchise royalties and rent. ~40% comes from company-operated restaurants.

Regardless of this structure, a meaningful percentage of McDonald's total revenue comes from pork product sales and some from alcohol — estimates suggest pork alone represents 15-20% of menu revenue globally.

Financial Screening

• Debt / Market Cap: Extremely high (~150%+ of market cap) ❌
• Interest Income / Total Revenue: Minimal ✅
• Haram Revenue (pork, alcohol) / Total Revenue: ~15-20% ❌

McDonald's also fails on the debt ratio — the company has enormous debt from share buybacks and real estate financing.

Screening Agencies' Verdict

• Zoya App — Not Compliant ❌
• MSCI Islamic Index — Excluded ❌
• All major halal ETFs — Not held ❌

Bottom Line

McDonald's fails Islamic screening on both business activity (pork and alcohol revenue) and financial ratios (excessive debt). The fact that some McDonald's locations are halal-certified doesn't change the analysis for the parent company's stock.