McDonald's Corp. (MCD) | Analysis of Revenues

Revenue Recognition Accounting Policy

McDonald's Corp.'s revenues consist of sales by Company-operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and foreign affiliates.

Sales by Company-operated restaurants are recognized on a cash basis.McDonald's Corp. presents sales net of sales tax and other sales-related taxes. Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales with minimum rent payments, and initial fees. Revenues from restaurants licensed to foreign affiliates and developmental licensees include a royalty based on a percent of sales, and may include initial fees. Continuing rent and royalties are recognized in the period earned. Initial fees are recognized upon opening of a restaurant or granting of a new franchise term, which is when McDonald's Corp. has performed substantially all initial services required by the franchise arrangement.

Source: McDonald's Corp., Annual Report

Revenues as Reported

McDonald's Corp., Income Statement, Revenues

Source: McDonald's Corp. Annual Reports

Item	Description	The company
Revenues	Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains.	McDonald's Corp.'s revenues increased from 2009 to 2010 and from 2010 to 2011.