Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
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- Common-Size Income Statement
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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McDonald’s Corp., consolidated statement of comprehensive income
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).
The statement of comprehensive income reveals fluctuations in both net income and other comprehensive income over the five-year period. Net income experienced a decline from 2021 to 2022, followed by a recovery and relative stabilization through 2025. However, significant variability exists within the components of other comprehensive income, impacting the overall comprehensive income figure.
- Net Income Trend
- Net income decreased from US$7,545 million in 2021 to US$6,177 million in 2022, representing a substantial drop. A strong recovery was then observed, with net income reaching US$8,469 million in 2023. Subsequent years show a slight decrease to US$8,223 million in 2024, followed by a modest increase to US$8,563 million in 2025. This suggests a period of volatility followed by a return to growth, albeit at a slower pace.
- Accumulated Other Comprehensive Income (AOCI)
- The AOCI component demonstrates considerable fluctuation. In 2022, a significant loss of US$354 million was recognized, contrasting with a loss of US$216 million in 2021. 2023 saw a positive shift with a gain of US$136 million, but this was followed by a loss of US$231 million in 2024 and a gain of US$289 million in 2025. The reclassification adjustments to net income are relatively small, except for a US$504 million reclassification in 2022, which likely mitigated some of the AOCI loss impact on comprehensive income.
- Foreign Currency Translation Adjustments
- Foreign currency translation adjustments exhibit a pattern of alternating gains and losses. A loss of US$182 million was recorded in 2021, followed by a gain of US$150 million in 2022 and another gain of US$136 million in 2023. However, 2024 experienced a loss of US$196 million, and 2025 showed a gain of US$284 million. This suggests exposure to currency fluctuations significantly impacts comprehensive income.
- Cash Flow Hedges
- Cash flow hedges show a decreasing trend in gains from 2021 to 2023 (US$87 million, US$56 million, and a loss of US$36 million respectively). A gain of US$125 million was recorded in 2024, followed by a loss of US$106 million in 2025. The associated gains and losses recognized in AOCI and reclassified to net income are relatively small, indicating a limited direct impact on net income.
- Defined Benefit Pension Plans
- Defined benefit pension plans consistently report losses throughout the period, ranging from US$119 million in 2022 to US$39 million in 2025. These losses contribute negatively to other comprehensive income and are relatively stable in magnitude.
- Other Comprehensive Income
- Other comprehensive income (loss) is volatile, with a small gain in 2021 (US$13 million), a larger gain in 2022 (US$87 million), a moderate gain in 2023 (US$31 million), a significant loss in 2024 (US$96 million), and a substantial gain in 2025 (US$139 million). This component demonstrates the most significant year-over-year changes.
Overall, comprehensive income generally follows the trend of net income, but is significantly influenced by the fluctuations within other comprehensive income components. The impact of foreign currency translation adjustments and other comprehensive income is substantial and contributes to the overall volatility in comprehensive income.