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McDonald’s Corp. (NYSE:MCD)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

McDonald’s Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Short-term borrowings and current maturities of long-term debt 0.00 0.00 3.90 0.00 0.00
Accounts payable 1.93 1.86 1.96 1.94 1.87
Current operating lease liability 1.13 1.13 1.14 1.27 1.31
Current finance lease liability 0.04 0.02 0.08 0.04 0.00
Current lease liability 1.17% 1.15% 1.23% 1.31% 1.31%
Income taxes 0.42 0.65 1.26 0.55 0.67
Other taxes 0.42 0.41 0.48 0.51 0.44
Accrued interest 0.90 0.87 0.84 0.78 0.67
Accrued payroll and other liabilities 2.50 2.05 2.55 2.45 2.50
Current liabilities 7.33% 7.00% 12.22% 7.54% 7.46%
Long-term debt, excluding current maturities 67.16 69.63 66.17 71.19 66.15
Long-term operating lease liability 19.86 20.15 20.53 21.48 24.18
Long-term finance lease liability 3.91 3.21 2.72 2.58 0.00
Long-term lease liability 23.77% 23.36% 23.26% 24.06% 24.18%
Long-term income taxes 0.23 0.62 0.65 1.57 3.52
Deferred revenues, initial franchise fees 1.59 1.41 1.41 1.50 1.37
Other long-term liabilities 1.18 1.40 1.69 2.09 2.01
Deferred income taxes 1.74 3.47 2.99 3.96 3.85
Long-term liabilities 95.68% 99.88% 96.17% 104.36% 101.08%
Total liabilities 103.01% 106.88% 108.38% 111.90% 108.54%
Preferred stock, no par value; issued: none 0.00 0.00 0.00 0.00 0.00
Common stock, $.01 par value 0.03 0.03 0.03 0.03 0.03
Additional paid-in capital 16.20 16.82 15.84 16.95 15.28
Retained earnings 118.09 121.11 113.06 118.06 106.83
Accumulated other comprehensive loss -4.06 -4.63 -4.37 -4.93 -4.78
Common stock in treasury, at cost -133.27 -140.22 -132.94 -142.01 -125.91
Shareholders’ deficit -3.01% -6.88% -8.38% -11.90% -8.54%
Total liabilities and shareholders’ deficit 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The capital structure is characterized by a high reliance on long-term debt and a persistent shareholders' deficit, reflecting an aggressive capital management strategy. Total liabilities have remained consistently above 100% of the total liabilities and shareholders' deficit, peaking at 111.90% in 2022 before trending downward to 103.01% by 2025.

Long-Term Debt and Liability Composition
Long-term debt, excluding current maturities, serves as the primary funding source, fluctuating between 66.15% and 71.19% over the analyzed period. While there was a peak in 2022, the proportion has stabilized around 67.16% by 2025. Other long-term liabilities, specifically deferred and long-term income taxes, have shown a marked decline, with long-term income taxes dropping from 3.52% in 2021 to 0.23% in 2025.
Lease Obligation Trends
A shift in the composition of lease liabilities is evident. Long-term operating lease liabilities have decreased steadily from 24.18% in 2021 to 19.86% in 2025. Conversely, long-term finance lease liabilities have increased from a negligible amount in 2021 to 3.91% in 2025. Despite these internal shifts, the total long-term lease liability has remained relatively stable, ending the period at 23.77%.
Current Liabilities and Liquidity
Current liabilities generally represent a small portion of the total structure, typically ranging between 7.00% and 7.54%. A temporary spike to 12.22% occurred in 2023, primarily driven by the introduction of short-term borrowings and current maturities of long-term debt at 3.90%. Accounts payable and accrued payroll have remained consistent, suggesting stable short-term operational obligations.
Equity and Shareholders' Deficit
The entity maintains a negative shareholders' equity position, a result of significant treasury stock acquisitions. Common stock in treasury has consistently exerted a large negative impact, ranging from -125.91% to -142.01%. This is partially offset by substantial retained earnings, which peaked at 121.11% in 2024. Despite the overall deficit, the shareholders' deficit has improved over time, narrowing from -11.90% in 2022 to -3.01% by the end of 2025.

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