Yes, new Macs are still shipped with iDVD on board. This is an easy way to get a rather fancy DVD with animated menus and stuff. It will do almost everything for you (encoding, demuxing, burning, ...).
However, be aware: This programm has not been updated since Apple declared the "disc" dead about 6 years ago! All themes are really old and iDVD does not get along nicely with 16:9 footage and sometimes messes up my video files. It runs on Lion, but don't be surprised if you don't get the result you would expect from the nice interface.
The above mentioned Toast is definitely an option, but not a cheap one. If you just want a movie on a DVD that you can play, without animated menus and stuff, you can simply use
Burn, which is free and very simplistic and provides exactly this, not more.