McDonald’s Corp. (NYSE:MCD)

The financial data reveals several notable trends over the period analyzed. The proportion of revenues from franchised restaurants has increased, rising from 55.84% in 2020 to around 60.6% by 2024, indicating continued growth or emphasis on the franchising business segment. Conversely, sales by company-operated restaurants have declined from 42.37% in 2020 to approximately 37.7% in 2024, signaling a shift in revenue composition perhaps due to strategic focus or operational changes. Other revenues have remained relatively stable, with minor fluctuations between 1.24% and 1.78% of total revenues.

Cost structure analysis shows a general trend of decreasing occupancy expenses related to franchised restaurants, from -11.49% down to around -9.78%, which may suggest improved efficiency or better cost management. The costs for food and paper, as well as payroll and employee benefits, have also decreased from around -13.35% to -11.55% and -12.58% to -11.42%, respectively, over the period, which could be reflective of operational efficiencies or cost-saving initiatives. Occupancy and other operating expenses show a steady downward trend from -10.42% to approximately -9.19%.

Company-operated restaurant expenses have notably decreased from -36.35% to around -32.16%, pointing toward improved cost management or operational efficiency within this segment. Other restaurant expenses have generally been low and stable, though with a slight uptick toward -1.31% in 2024.

Gross margin has improved significantly, increasing from 50.77% in 2020 to 56.75% in 2024, illustrating enhanced profitability from core operations. Depreciation and amortization as a percentage of revenues fluctuated mildly, generally staying close to around -1.5%. Other operating expenses and selling, general & administrative expenses have decreased, contributing positively to operating results.

There is some volatility in gains on sales of restaurant businesses, with values ranging between 0.12% and 0.42%. Equity earnings of unconsolidated affiliates remained relatively stable around 0.5% to 0.7%. Asset dispositions and impairment charges showed fluctuations, with impairment and other charges exhibiting negative values during some years, which could reflect asset write-downs or restructuring costs.

Operating income as a percentage of revenues increased from 38.13% in 2020 to peaks above 45% in 2023 and 2024, underscoring improved operational profitability. Interest expense as a percentage of revenues declined from -6.34% to -5.81%, reflecting potentially better financing terms or lower debt levels relatively to revenue. Nonoperating income/expense showed some variability but stayed close to neutral in recent years.

Income before taxes and net income margins show strong growth, with net income margin rising from 24.63% in 2020 to over 31% in 2024. The provision for income taxes has marginally increased as a percentage of revenues toward -8.19%. Overall, the data indicates enhanced profitability and efficiency with a shift in revenue sources toward franchised restaurants and improved cost controls across multiple expense categories.