Analysis of Revenues
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
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Revenues as Reported
McDonald’s Corp., income statement, revenues
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Overall revenues exhibited a generally positive trend over the five-year period, though with some fluctuations. While a slight decrease was observed between 2021 and 2022, subsequent years demonstrate consistent growth. The composition of revenues reveals a reliance on franchised restaurant income, alongside a significant contribution from company-operated locations and increasing contributions from other revenue streams.
- Revenues from Franchised Restaurants
- Revenues from franchised restaurants consistently increased from US$13,085 million in 2021 to US$16,548 million in 2025. This represents a cumulative growth of approximately 26.4% over the period. The growth rate appears to be accelerating, with larger absolute increases observed in later years. This suggests a strengthening franchise network and potentially increased royalty and rent collection efficiency.
- Sales by Company-operated Restaurants
- Sales from company-operated restaurants experienced a decrease from US$9,787 million in 2021 to US$8,748 million in 2022. However, these sales recovered to US$9,742 million in 2023 and remained relatively stable at US$9,782 million in 2024 before a slight decrease to US$9,690 million in 2025. This indicates a period of initial disruption followed by stabilization and a minor decline at the end of the period. The relative stability suggests a mature market for company-operated locations.
- Rents and Royalties
- Both rents and royalties demonstrated consistent growth throughout the period. Rents increased from US$8,381 million in 2021 to US$10,442 million in 2025, representing a growth of approximately 24.6%. Royalties increased from US$4,645 million to US$6,018 million, a growth of roughly 29.7%. The parallel growth of these two revenue streams reinforces the positive trend in the franchise network.
- Initial Fees and Other Revenues
- Initial fees were relatively small in comparison to other revenue streams, exhibiting some volatility. While fluctuating, they remained generally around the US$60-92 million range. Other revenues showed a more significant increase, growing from US$350 million in 2021 to US$647 million in 2025. This represents a substantial increase of approximately 84.9%, indicating a diversification of revenue sources and potentially successful new initiatives.
- Total Revenues
- Total revenues decreased slightly from US$23,223 million in 2021 to US$23,183 million in 2022. However, a clear upward trend is then observed, with revenues reaching US$26,885 million in 2025. This represents a cumulative growth of approximately 15.7% over the five-year period. The growth in total revenues is primarily driven by the consistent expansion of revenues from franchised restaurants and the increasing contribution from other revenue sources.