McDonald's Corporation (MCD) 10-Year Financial Performance & Capital Metrics

MCD • • Industrial / General

Consumer CyclicalRestaurantsQuick Service Restaurants (QSR)Global Burger Chains

AboutMcDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer hamburgers and cheeseburgers, chicken sandwiches and nuggets, wraps, fries, salads, oatmeal, shakes, desserts, sundaes, soft serve cones, bakery items, soft drinks, coffee, and beverages and other beverages, as well as breakfast menu, including biscuit and bagel sandwiches, breakfast burritos, hotcakes, and other sandwiches. As of December 31, 2021, the company operated 40,031 restaurants. McDonald's Corporation was founded in 1940 and is headquartered in Chicago, Illinois.Show more

Revenue $25.92B +1.7%
EBITDA $13.81B +1.4%
Net Income $8.22B -2.9%
EPS (Diluted) 11.39 -1.5%
Gross Margin 56.75% -0.7%
EBITDA Margin 53.28% -0.3%
Operating Margin 45.19% -1.1%
Net Margin 31.72% -4.5%
ROE -
ROIC 19.33% -7.1%
Debt/Equity -
Interest Coverage 7.78 -9.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Dividend Aristocrat: 26 years of consecutive increases
✓Strong Piotroski F-Score: 7/9
✓FCF machine: 25.7% free cash flow margin
✓Healthy dividend yield of 2.2%
✓Healthy 5Y average net margin of 29.7%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-0.57%

5Y3.94%

3Y3.73%

TTM1.25%

Profit (Net Income) CAGR

10Y5.62%

5Y6.42%

3Y2.91%

TTM2.06%

EPS CAGR

10Y8.98%

5Y7.65%

3Y4.29%

TTM2.9%

ROCE

10Y Avg23.73%

5Y Avg20.94%

3Y Avg22.33%

Latest23.28%

Peer Comparison

Global Burger Chains

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
MCDMcDonald's Corporation	219.79B	308.62	27.10	1.67%	32.04%		3.04%
ARCOArcos Dorados Holdings Inc.	991.73M	7.59	10.69	3.19%	5.39%	32.88%		3.38

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	25.41B	24.62B	22.82B	21.26B	21.36B	19.21B	23.22B	23.18B	25.5B	25.92B
Revenue Growth %	-0.07%	-0.03%	-0.07%	-0.07%	0.01%	-0.1%	0.21%	-0%	0.1%	0.02%
Cost of Goods Sold+	15.62B	14.42B	12.2B	10.43B	10.19B	9.46B	10.64B	9.97B	10.93B	11.21B
COGS % of Revenue	0.61%	0.59%	0.53%	0.49%	0.48%	0.49%	0.46%	0.43%	0.43%	0.43%
Gross Profit+	9.79B	10.2B	10.62B	10.83B	11.18B	9.75B	12.58B	13.21B	14.56B	14.71B
Gross Margin %	0.39%	0.41%	0.47%	0.51%	0.52%	0.51%	0.54%	0.57%	0.57%	0.57%
Gross Profit Growth %	-0.06%	0.04%	0.04%	0.02%	0.03%	-0.13%	0.29%	0.05%	0.1%	0.01%
Operating Expenses+	2.64B	2.46B	1.07B	2.01B	2.11B	2.43B	2.22B	3.84B	2.92B	3B
OpEx % of Revenue	0.1%	0.1%	0.05%	0.09%	0.1%	0.13%	0.1%	0.17%	0.11%	0.12%
Selling, General & Admin	2.43B	2.38B	2.23B	1.99B	1.97B	2.25B	2.38B	2.49B	2.44B	2.41B
SG&A % of Revenue	0.1%	0.1%	0.1%	0.09%	0.09%	0.12%	0.1%	0.11%	0.1%	0.09%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	209.4M	75.7M	-1.16B	24.6M	142.7M	183.1M	-153.6M	1.34B	482M	586M
Operating Income+	7.15B	7.74B	9.55B	8.82B	9.07B	7.32B	10.36B	9.37B	11.65B	11.71B
Operating Margin %	0.28%	0.31%	0.42%	0.42%	0.42%	0.38%	0.45%	0.4%	0.46%	0.45%
Operating Income Growth %	-0.1%	0.08%	0.23%	-0.08%	0.03%	-0.19%	0.41%	-0.1%	0.24%	0.01%
EBITDA+	8.7B	9.26B	10.92B	10.3B	10.69B	9.08B	12.22B	11.24B	13.63B	13.81B
EBITDA Margin %	0.34%	0.38%	0.48%	0.48%	0.5%	0.47%	0.53%	0.48%	0.53%	0.53%
EBITDA Growth %	-0.09%	0.06%	0.18%	-0.06%	0.04%	-0.15%	0.35%	-0.08%	0.21%	0.01%
D&A (Non-Cash Add-back)	1.56B	1.52B	1.36B	1.48B	1.62B	1.75B	1.87B	1.87B	1.98B	2.1B
EBIT	7.19B	7.75B	9.49B	8.8B	9.14B	7.36B	10.31B	9.03B	11.88B	11.85B
Net Interest Income+	-629.3M	-880.8M	-914.3M	-977.2M	-1.08B	-1.2B	-1.18B	-1.16B	-1.17B	-1.4B
Interest Income	9M	4M	7M	4M	37M	18M	9M	44M	187M	103M
Interest Expense	638.3M	884.8M	921.3M	981.2M	1.12B	1.22B	1.19B	1.21B	1.36B	1.51B
Other Income/Expense	-589.8M	-878.5M	-979.2M	-1.01B	-1.05B	-1.18B	-1.23B	-1.55B	-1.13B	-1.37B
Pretax Income+	6.56B	6.87B	8.57B	7.82B	8.02B	6.14B	9.13B	7.83B	10.52B	10.35B
Pretax Margin %	0.26%	0.28%	0.38%	0.37%	0.38%	0.32%	0.39%	0.34%	0.41%	0.4%
Income Tax+	2.03B	2.18B	3.38B	1.89B	1.99B	1.41B	1.58B	1.65B	2.05B	2.12B
Effective Tax Rate %	0.69%	0.68%	0.61%	0.76%	0.75%	0.77%	0.83%	0.79%	0.8%	0.79%
Net Income+	4.53B	4.69B	5.19B	5.92B	6.03B	4.73B	7.55B	6.18B	8.47B	8.22B
Net Margin %	0.18%	0.19%	0.23%	0.28%	0.28%	0.25%	0.32%	0.27%	0.33%	0.32%
Net Income Growth %	-0.05%	0.03%	0.11%	0.14%	0.02%	-0.21%	0.6%	-0.18%	0.37%	-0.03%
Net Income (Continuing)	4.53B	4.69B	5.19B	5.92B	6.03B	4.73B	7.55B	6.18B	8.47B	8.22B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	4.80	5.44	6.37	7.54	7.88	6.31	10.04	8.33	11.56	11.39
EPS Growth %	-0%	0.13%	0.17%	0.18%	0.05%	-0.2%	0.59%	-0.17%	0.39%	-0.01%
EPS (Basic)	4.82	5.49	6.43	7.61	7.95	6.35	10.11	8.39	11.63	11.45
Diluted Shares Outstanding	944.6M	861.2M	815.5M	785.6M	764.9M	750.1M	751.8M	741.3M	732.3M	721.9M
Basic Shares Outstanding	939.4M	854.4M	807.4M	778.2M	758.1M	744.6M	746.3M	736.5M	727.9M	718.3M
Dividend Payout Ratio	0.71%	0.65%	0.59%	0.55%	0.59%	0.79%	0.52%	0.67%	0.54%	0.59%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	9.64B	4.85B	5.33B	4.05B	3.56B	6.24B	7.15B	5.42B	7.99B	4.6B
Cash & Short-Term Investments	7.69B	1.22B	2.46B	866M	898.5M	3.45B	4.71B	2.58B	4.58B	1.08B
Cash Only	7.69B	1.22B	2.46B	866M	898.5M	3.45B	4.71B	2.58B	4.58B	1.08B
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	1.3B	1.47B	1.98B	2.44B	2.22B	2.11B	1.87B	2.12B	2.49B	2.38B
Days Sales Outstanding	18.65	21.85	31.61	41.92	38	40.1	29.43	33.3	35.62	33.56
Inventory	100.1M	58.9M	58.8M	51.1M	50.2M	51.1M	55.6M	52M	53M	56M
Days Inventory Outstanding	2.34	1.49	1.76	1.79	1.8	1.97	1.91	1.9	1.77	1.82
Other Current Assets	0	1.53B	0	0	0	0	0	673.4M	866M	1.07B
Total Non-Current Assets+	28.3B	26.18B	28.48B	28.76B	43.95B	46.38B	46.71B	45.01B	48.16B	50.58B
Property, Plant & Equipment	23.12B	21.26B	22.45B	22.84B	37.42B	38.79B	38.27B	36.34B	38.42B	38.63B
Fixed Asset Turnover	1.10x	1.16x	1.02x	0.93x	0.57x	0.50x	0.61x	0.64x	0.66x	0.67x
Goodwill	2.52B	2.34B	2.38B	2.33B	2.68B	2.77B	2.78B	2.9B	3.04B	3.15B
Intangible Assets	0	0	0	0	0	0	0	0	0	0
Long-Term Investments	792.7M	725.9M	1.09B	1.2B	1.27B	1.3B	1.2B	1.06B	1.08B	2.71B
Other Non-Current Assets	1.87B	1.86B	2.56B	2.38B	2.58B	3.53B	4.45B	4.71B	5.62B	6.09B
Total Assets+	37.94B	31.02B	33.8B	32.81B	47.51B	52.63B	53.85B	50.44B	56.15B	55.18B
Asset Turnover	0.67x	0.79x	0.68x	0.65x	0.45x	0.36x	0.43x	0.46x	0.45x	0.47x
Asset Growth %	0.11%	-0.18%	0.09%	-0.03%	0.45%	0.11%	0.02%	-0.06%	0.11%	-0.02%
Total Current Liabilities+	2.95B	3.47B	2.89B	2.97B	3.62B	6.18B	4.02B	3.8B	6.86B	3.86B
Accounts Payable	874.7M	756M	924.8M	1.21B	988.2M	741.3M	1.01B	980.2M	1.1B	1.03B
Days Payables Outstanding	20.43	19.14	27.67	42.29	35.41	28.61	34.53	35.87	36.83	33.5
Short-Term Debt	0	77.2M	0	0	59.1M	2.24B	0	0	2.19B	0
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	0	694.8M	0	0	0	0	0	0	0	0
Current Ratio	3.27x	1.40x	1.84x	1.36x	0.98x	1.01x	1.78x	1.43x	1.16x	1.19x
Quick Ratio	3.23x	1.38x	1.82x	1.35x	0.97x	1.00x	1.76x	1.41x	1.16x	1.18x
Cash Conversion Cycle	0.56	4.2	5.7	1.42	4.38	13.46	-3.19	-0.66	0.56	1.88
Total Non-Current Liabilities+	27.9B	29.76B	34.18B	36.1B	52.1B	54.27B	54.44B	52.64B	53.99B	55.12B
Long-Term Debt	24.12B	25.88B	29.54B	31.08B	34.12B	35.2B	35.62B	35.9B	37.15B	38.42B
Capital Lease Obligations	0	0	0	0	12.76B	13.32B	13.02B	12.13B	13.06B	12.89B
Deferred Tax Liabilities	1.7B	1.82B	1.12B	1.22B	1.32B	2.03B	2.08B	2B	1.68B	1.91B
Other Non-Current Liabilities	2.07B	2.06B	3.53B	3.18B	3.25B	3.02B	2.98B	1.84B	1.31B	1.11B
Total Liabilities	30.85B	33.23B	37.07B	39.07B	55.72B	60.45B	58.46B	56.44B	60.85B	58.98B
Total Debt+	24.12B	25.96B	29.54B	31.08B	47.56B	51.46B	49.35B	48.7B	53.09B	51.95B
Net Debt	16.44B	24.73B	27.07B	30.21B	46.66B	48.01B	44.64B	46.12B	48.51B	50.86B
Debt / Equity	3.40x	-	-	-	-	-	-	-	-	-
Debt / EBITDA	2.77x	2.80x	2.71x	3.02x	4.45x	5.67x	4.04x	4.33x	3.90x	3.76x
Net Debt / EBITDA	1.89x	2.67x	2.48x	2.93x	4.37x	5.29x	3.65x	4.10x	3.56x	3.68x
Interest Coverage	11.19x	8.75x	10.37x	8.99x	8.08x	6.01x	8.73x	7.76x	8.56x	7.78x
Total Equity+	7.09B	-2.2B	-3.27B	-6.26B	-8.21B	-7.82B	-4.6B	-6B	-4.71B	-3.8B
Equity Growth %	-0.45%	-1.31%	-0.48%	-0.92%	-0.31%	0.05%	0.41%	-0.3%	0.22%	0.19%
Book Value per Share	7.50	-2.56	-4.01	-7.97	-10.73	-10.43	-6.12	-8.10	-6.43	-5.26
Total Shareholders' Equity	7.09B	-2.2B	-3.27B	-6.26B	-8.21B	-7.82B	-4.6B	-6B	-4.71B	-3.8B
Common Stock	16.6M	16.6M	16.6M	16.6M	16.6M	16.6M	16.6M	16.6M	17M	17M
Retained Earnings	44.59B	46.22B	48.33B	50.49B	52.93B	53.91B	57.53B	59.54B	63.48B	66.83B
Treasury Stock	-41.18B	-52.11B	-56.5B	-61.53B	-66.33B	-67.07B	-67.81B	-71.62B	-74.64B	-77.38B
Accumulated OCI	-2.88B	-3.09B	-2.18B	-2.61B	-2.48B	-2.59B	-2.57B	-2.49B	-2.46B	-2.55B
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	6.54B	6.06B	5.55B	6.97B	8.12B	6.27B	9.14B	7.39B	9.61B	9.45B
Operating CF Margin %	0.26%	0.25%	0.24%	0.33%	0.38%	0.33%	0.39%	0.32%	0.38%	0.36%
Operating CF Growth %	-0.03%	-0.07%	-0.08%	0.25%	0.17%	-0.23%	0.46%	-0.19%	0.3%	-0.02%
Net Income	4.53B	4.69B	5.19B	5.92B	6.03B	4.73B	7.55B	6.18B	8.47B	8.22B
Depreciation & Amortization	1.56B	1.52B	1.36B	1.48B	1.62B	1.75B	1.87B	1.87B	1.98B	2.1B
Stock-Based Compensation	110M	131.3M	117.5M	125.1M	109.6M	92.4M	139.2M	167M	175.2M	172M
Deferred Taxes	-1.4M	-538.6M	-36.4M	102.6M	149.7M	6.4M	-428.3M	-345.7M	-686M	-574M
Other Non-Cash Items	177.6M	96.9M	-105.1M	-194.6M	-79M	-103.4M	-436.9M	162.3M	-216M	-33M
Working Capital Changes	167.9M	167M	-980.5M	-472.7M	298.5M	-212.1M	454.2M	-644.6M	-108M	-438M
Change in Receivables	-180.6M	-159M	-340.7M	-479.4M	27M	-6.8M	309.9M	-264.1M	-161M	10M
Change in Inventory	44.9M	28.1M	-37.3M	-1.9M	128.8M	-68.6M	-62.2M	5.6M	16.7M	71M
Change in Payables	-15M	89.8M	-59.7M	129.4M	-26.8M	-137.5M	225M	31.3M	50.4M	-10M
Cash from Investing+	-1.42B	-981.6M	562M	-2.46B	-3.07B	-1.55B	-2.17B	-2.68B	-3.18B	-5.35B
Capital Expenditures	-1.81B	-1.82B	-1.85B	-2.74B	-2.39B	-1.64B	-2.04B	-1.9B	-2.36B	-2.77B
CapEx % of Revenue	0.07%	0.07%	0.08%	0.13%	0.11%	0.09%	0.09%	0.08%	0.09%	0.11%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-19.7M	-26.6M	-79.1M	-302.9M	-628.5M	57.4M	52.3M	-456.7M	-581.2M	-376M
Cash from Financing+	735.3M	-11.26B	-5.31B	-5.95B	-4.99B	-2.25B	-5.6B	-6.58B	-4.37B	-7.5B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-3.23B	-3.06B	-3.09B	-3.26B	-3.58B	-3.75B	-3.92B	-4.17B	-4.53B	-4.87B
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	309.6M	296.4M	436.3M	383.2M	327M	173.5M	239M	286.4M	220M	270M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	4.73B	4.24B	3.7B	4.22B	5.73B	4.62B	7.1B	5.49B	7.25B	6.67B
FCF Margin %	0.19%	0.17%	0.16%	0.2%	0.27%	0.24%	0.31%	0.24%	0.28%	0.26%
FCF Growth %	0.14%	-0.1%	-0.13%	0.14%	0.36%	-0.19%	0.54%	-0.23%	0.32%	-0.08%
FCF per Share	5.00	4.92	4.53	5.38	7.49	6.17	9.45	7.40	9.91	9.24
FCF Conversion (FCF/Net Income)	1.44x	1.29x	1.07x	1.18x	1.35x	1.32x	1.21x	1.20x	1.13x	1.15x
Interest Paid	640.8M	873.5M	885.2M	959.6M	1.07B	1.14B	1.2B	1.18B	1.29B	1.52B
Taxes Paid	1.99B	2.39B	2.79B	1.73B	1.59B	1.44B	2.4B	3.02B	2.99B	2.97B

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	45.43%	191.93%	-	-	-	-	-	-	-	-
Return on Invested Capital (ROIC)	21.77%	25.22%	30.93%	27.71%	21.8%	13.97%	19.36%	17.54%	20.82%	19.33%
Gross Margin	38.52%	41.45%	46.54%	50.96%	52.33%	50.77%	54.17%	56.97%	57.12%	56.75%
Net Margin	17.82%	19.03%	22.75%	27.87%	28.2%	24.63%	32.49%	26.65%	33.22%	31.72%
Debt / Equity	3.40x	-	-	-	-	-	-	-	-	-
Interest Coverage	11.19x	8.75x	10.37x	8.99x	8.08x	6.01x	8.73x	7.76x	8.56x	7.78x
FCF Conversion	1.44x	1.29x	1.07x	1.18x	1.35x	1.32x	1.21x	1.20x	1.13x	1.15x
Revenue Growth	-7.39%	-3.11%	-7.32%	-6.85%	0.5%	-10.09%	20.9%	-0.18%	9.98%	1.67%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
High-Growth Markets	16.85B	16.37B	14.81B	13.36B	11.4B	9.57B	12.22B	11.3B	12.38B	12.63B
High-Growth Markets Growth	-	-2.88%	-9.50%	-9.82%	-14.68%	-16.04%	27.68%	-7.55%	9.60%	1.99%
UNITED STATES	8.56B	8.25B	8.01B	7.67B	7.84B	7.83B	8.87B	9.59B	10.57B	10.63B
UNITED STATES Growth	-	-3.58%	-2.98%	-4.25%	2.31%	-0.18%	13.24%	8.16%	10.22%	0.59%
International Developmental Licensed Markets and Corporate	-	-	-	-	1.84B	1.81B	2.14B	2.3B	2.54B	2.66B
International Developmental Licensed Markets and Corporate Growth	-	-	-	-	-	-1.45%	18.22%	7.44%	10.71%	4.63%

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
International Operated Markets	7.61B	7.22B	7.34B	7.6B	11.4B	9.57B	12.22B	11.3B	12.38B	12.63B
International Operated Markets Growth	-	-5.14%	1.62%	3.54%	49.98%	-16.04%	27.68%	-7.55%	9.60%	1.99%
UNITED STATES	8.56B	8.25B	8.01B	7.67B	7.84B	7.83B	8.87B	9.59B	10.57B	10.63B
UNITED STATES Growth	-	-3.58%	-2.98%	-4.25%	2.31%	-0.18%	13.24%	8.16%	10.22%	0.59%
International Developmental Licensed Markets and Corporate	-	-	-	-	1.84B	1.81B	2.14B	2.3B	2.54B	2.66B
International Developmental Licensed Markets and Corporate Growth	-	-	-	-	-	-1.45%	18.22%	7.44%	10.71%	4.63%

Frequently Asked Questions

Valuation & Price

McDonald's Corporation (MCD) has a price-to-earnings (P/E) ratio of 27.1x. This suggests investors expect higher future growth.

Growth & Financials

McDonald's Corporation (MCD) reported $26.26B in revenue for fiscal year 2024. This represents a 3% decrease from $27.01B in 2011.

McDonald's Corporation (MCD) grew revenue by 1.7% over the past year. Growth has been modest.

Yes, McDonald's Corporation (MCD) is profitable, generating $8.41B in net income for fiscal year 2024 (31.7% net margin).

Dividend & Returns

Yes, McDonald's Corporation (MCD) pays a dividend with a yield of 2.19%. This makes it attractive for income-focused investors.

McDonald's Corporation (MCD) generated $7.37B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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