Stock Analysis on Net
Stock Analysis on Net

McDonald’s Corp. (NYSE:MCD)

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Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

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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
Accounts payable
Current operating lease liability
Current finance lease liability
Current lease liability
Income taxes
Other taxes
Accrued interest
Accrued payroll and other liabilities
Current liabilities
Long-term debt, excluding current maturities
Long-term operating lease liability
Long-term finance lease liability
Long-term lease liability
Long-term income taxes
Deferred revenues, initial franchise fees
Other long-term liabilities
Deferred income taxes
Long-term liabilities
Total liabilities
Preferred stock, no par value; issued: none
Common stock, $.01 par value
Additional paid-in capital
Retained earnings
Accumulated other comprehensive loss
Common stock in treasury, at cost
Shareholders’ equity (deficit)
Total liabilities and shareholders’ equity (deficit)

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 composition of liabilities and stockholders’ equity exhibited notable shifts between 2021 and 2025. Total liabilities generally decreased as a percentage of the total, while stockholders’ equity experienced significant volatility, ultimately becoming a smaller proportion of the overall financial structure.

Current Liabilities
Current liabilities as a percentage of the total initially increased from 7.46% in 2021 to a peak of 12.22% in 2023, before declining to 7.33% in 2025. This fluctuation was largely driven by changes in the overall composition of liabilities. Within current liabilities, accrued payroll and other liabilities remained relatively stable, fluctuating between 2.05% and 2.55%, while income taxes showed considerable variation, decreasing from 0.67% to 0.42% over the period. A small but growing presence of current finance lease liabilities was observed.
Long-Term Liabilities
Long-term liabilities demonstrated a decreasing trend as a percentage of the total, moving from 101.08% in 2021 to 95.68% in 2025. Long-term debt, excluding current maturities, remained the dominant component, consistently representing over 66% of the total. Long-term operating lease liabilities also contributed significantly, decreasing from 24.18% to 19.86% over the period. Long-term finance lease liabilities increased steadily, rising from an immaterial amount to 3.91% in 2025. Deferred income taxes experienced a substantial decline, falling from 3.85% to 1.74%.
Stockholders’ Equity
Stockholders’ equity exhibited a substantial decline as a percentage of the total, transitioning from -8.54% in 2021 to -3.01% in 2025. This was primarily influenced by the significant impact of common stock in treasury, which consistently represented a large negative percentage, increasing in magnitude from -125.91% to -133.27%. Retained earnings remained the largest positive component of equity, fluctuating between 113.06% and 121.11%. Accumulated other comprehensive loss remained relatively stable as a negative percentage. Common stock and additional paid-in capital remained consistently small percentages of the total.

The overall trend indicates a shift away from reliance on stockholders’ equity and towards liabilities, particularly long-term debt, to finance the company’s operations. The increasing proportion of treasury stock suggests potential share repurchase activity. The decrease in deferred income taxes may indicate changes in tax planning strategies or the utilization of tax loss carryforwards.