Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

Analysis of Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

McDonald’s Corp., profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Gross profit margin 57.12% 56.97% 54.17% 50.77% 52.74%
Operating profit margin 45.68% 40.42% 44.59% 38.13% 43.03%
Net profit margin 33.22% 26.65% 32.49% 24.63% 28.59%
Return on Investment
Return on equity (ROE)
Return on assets (ROA) 15.08% 12.25% 14.01% 8.99% 12.68%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. McDonald’s Corp. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. McDonald’s Corp. operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. McDonald’s Corp. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. McDonald’s Corp. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Gross Profit Margin

McDonald’s Corp., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Gross margin 14,562,500 13,207,200 12,580,200 9,752,100 11,115,300
Revenues 25,493,700 23,182,600 23,222,900 19,207,800 21,076,500
Profitability Ratio
Gross profit margin1 57.12% 56.97% 54.17% 50.77% 52.74%
Benchmarks
Gross Profit Margin, Competitors2
Airbnb Inc. 82.83% 82.15% 80.71% 74.07%
Carnival Corp. & plc 33.70% 3.38% -143.97% -47.36% 38.01%
Chipotle Mexican Grill Inc. 26.20% 23.88% 22.62% 17.40% 20.45%
Starbucks Corp. 27.37% 25.96% 28.87% 21.51% 28.25%

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 2023 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenues
= 100 × 14,562,500 ÷ 25,493,700 = 57.12%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. McDonald’s Corp. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Operating Profit Margin

McDonald’s Corp., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Operating income 11,646,700 9,371,000 10,356,000 7,324,000 9,069,800
Revenues 25,493,700 23,182,600 23,222,900 19,207,800 21,076,500
Profitability Ratio
Operating profit margin1 45.68% 40.42% 44.59% 38.13% 43.03%
Benchmarks
Operating Profit Margin, Competitors2
Airbnb Inc. 15.31% 21.45% 7.17% -106.27%
Booking Holdings Inc. 27.31% 29.85% 22.78% -9.28% 35.48%
Carnival Corp. & plc 9.06% -35.99% -371.54% -158.45% 15.73%
Chipotle Mexican Grill Inc. 15.78% 13.44% 10.67% 4.85% 7.95%
Starbucks Corp. 16.32% 14.32% 16.77% 6.64% 15.38%
Operating Profit Margin, Sector
Consumer Services 22.85% 17.37% 15.08% -6.06% 24.94%
Operating Profit Margin, Industry
Consumer Discretionary 9.14% 8.09% 8.18% 5.56% 7.83%

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 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 11,646,700 ÷ 25,493,700 = 45.68%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. McDonald’s Corp. operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Net Profit Margin

McDonald’s Corp., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net income 8,468,800 6,177,400 7,545,200 4,730,500 6,025,400
Revenues 25,493,700 23,182,600 23,222,900 19,207,800 21,076,500
Profitability Ratio
Net profit margin1 33.22% 26.65% 32.49% 24.63% 28.59%
Benchmarks
Net Profit Margin, Competitors2
Airbnb Inc. 48.32% 22.54% -5.88% -135.71%
Booking Holdings Inc. 20.07% 17.89% 10.63% 0.87% 32.29%
Carnival Corp. & plc -0.34% -50.07% -497.96% -182.95% 14.36%
Chipotle Mexican Grill Inc. 12.45% 10.41% 8.65% 5.94% 6.27%
Starbucks Corp. 11.46% 10.18% 14.45% 3.95% 13.58%
Net Profit Margin, Sector
Consumer Services 18.38% 9.06% 4.71% -13.57% 20.02%
Net Profit Margin, Industry
Consumer Discretionary 7.82% 4.67% 8.37% 4.18% 6.13%

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 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 8,468,800 ÷ 25,493,700 = 33.22%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. McDonald’s Corp. net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Return on Equity (ROE)

McDonald’s Corp., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net income 8,468,800 6,177,400 7,545,200 4,730,500 6,025,400
Shareholders’ equity (deficit) (4,706,700) (6,003,400) (4,601,000) (7,824,900) (8,210,300)
Profitability Ratio
ROE1
Benchmarks
ROE, Competitors2
Airbnb Inc. 58.69% 34.05% -7.37% -158.00%
Booking Holdings Inc. 109.92% 18.86% 1.21% 82.00%
Carnival Corp. & plc -1.08% -86.24% -78.24% -49.80% 11.79%
Chipotle Mexican Grill Inc. 40.13% 37.97% 28.42% 17.61% 20.81%
Starbucks Corp.
ROE, Sector
Consumer Services 857.04% 300.69% 23.97% -59.34% 96.18%
ROE, Industry
Consumer Discretionary 30.04% 19.34% 30.06% 18.33% 31.35%

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 2023 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity (deficit)
= 100 × 8,468,800 ÷ -4,706,700 =

2 Click competitor name to see calculations.


Return on Assets (ROA)

McDonald’s Corp., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net income 8,468,800 6,177,400 7,545,200 4,730,500 6,025,400
Total assets 56,146,800 50,435,600 53,854,300 52,626,800 47,510,800
Profitability Ratio
ROA1 15.08% 12.25% 14.01% 8.99% 12.68%
Benchmarks
ROA, Competitors2
Airbnb Inc. 23.21% 11.80% -2.57% -43.70%
Booking Holdings Inc. 17.62% 12.06% 4.93% 0.27% 22.73%
Carnival Corp. & plc -0.15% -11.78% -17.81% -19.10% 6.64%
Chipotle Mexican Grill Inc. 15.27% 12.98% 9.81% 5.95% 6.86%
Starbucks Corp. 14.01% 11.73% 13.38% 3.16% 18.73%
ROA, Sector
Consumer Services 12.16% 5.16% 2.03% -5.03% 12.89%
ROA, Industry
Consumer Discretionary 7.44% 4.36% 7.07% 3.39% 5.64%

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 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 8,468,800 ÷ 56,146,800 = 15.08%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. McDonald’s Corp. ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.