Net Profit Margin
since 2005
Calculation
McDonald’s Corp., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 31.72% | = | 100 | × | 8,223) | ÷ | 25,920) |
| Dec 31, 2023 | 33.22% | = | 100 | × | 8,469) | ÷ | 25,494) |
| Dec 31, 2022 | 26.65% | = | 100 | × | 6,177) | ÷ | 23,183) |
| Dec 31, 2021 | 32.49% | = | 100 | × | 7,545) | ÷ | 23,223) |
| Dec 31, 2020 | 24.63% | = | 100 | × | 4,731) | ÷ | 19,208) |
| Dec 31, 2019 | 28.59% | = | 100 | × | 6,025) | ÷ | 21,077) |
| Dec 31, 2018 | 28.18% | = | 100 | × | 5,924) | ÷ | 21,025) |
| Dec 31, 2017 | 22.75% | = | 100 | × | 5,192) | ÷ | 22,820) |
| Dec 31, 2016 | 19.03% | = | 100 | × | 4,687) | ÷ | 24,622) |
| Dec 31, 2015 | 17.82% | = | 100 | × | 4,529) | ÷ | 25,413) |
| Dec 31, 2014 | 17.34% | = | 100 | × | 4,758) | ÷ | 27,441) |
| Dec 31, 2013 | 19.87% | = | 100 | × | 5,586) | ÷ | 28,106) |
| Dec 31, 2012 | 19.82% | = | 100 | × | 5,465) | ÷ | 27,567) |
| Dec 31, 2011 | 20.38% | = | 100 | × | 5,503) | ÷ | 27,006) |
| Dec 31, 2010 | 20.55% | = | 100 | × | 4,946) | ÷ | 24,075) |
| Dec 31, 2009 | 20.01% | = | 100 | × | 4,551) | ÷ | 22,745) |
| Dec 31, 2008 | 18.34% | = | 100 | × | 4,313) | ÷ | 23,522) |
| Dec 31, 2007 | 10.51% | = | 100 | × | 2,395) | ÷ | 22,787) |
| Dec 31, 2006 | 16.42% | = | 100 | × | 3,544) | ÷ | 21,586) |
| Dec 31, 2005 | 12.72% | = | 100 | × | 2,602) | ÷ | 20,460) |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial data demonstrates fluctuating yet generally positive trends in net income, revenues, and net profit margin over the period analyzed.
- Net Income
- Net income exhibited variability, beginning at 2,602 million US dollars in 2005 and generally increasing over time, reaching a peak of 8,469 million US dollars in 2023. Notably, net income experienced dips in specific years, such as in 2007 and 2014, and a decrease in 2020 to 4,731 million US dollars, likely influenced by external factors impacting that fiscal year. However, the overall trajectory suggests growth with recovery and strong performance especially post-2020.
- Revenues
- Revenues showed a gradual increase from 20,460 million US dollars in 2005, peaking at 28,106 million US dollars in 2013 before showing some volatility. A notable decline occurred from 2013 to 2018, where revenues decreased to 21,025 million US dollars. Following this period, revenues stabilized and increased again to 25,920 million US dollars by 2024, indicating resilience and a potential recovery in sales or operational growth.
- Net Profit Margin
- The net profit margin displayed an overall upward trend, improving from 12.72% in 2005 to a high of 33.22% in 2023. Margins showed fluctuations across the years, with a notable peak in 2018 at 28.18% and maintaining above 20% from 2008 onwards. The increase in profit margin despite some revenue dips suggests enhanced operational efficiency, cost management, or pricing strategies leading to higher profitability relative to sales.
Overall, the data reveals that despite some slumps in revenues and net income in certain years, the company managed to enhance profitability continuously over the long term. The increasing profit margins accompanied by recovering revenues signal improved financial health and effective management strategies supporting sustained earnings growth.
Comparison to Competitors
McDonald’s Corp., net profit margin, long-term trends, comparison to competitors
| McDonald’s Corp. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | Starbucks Corp. | |
|---|---|---|---|---|---|
| Dec 31, 2024 | 31.72% | 23.85% | 24.78% | 13.56% | 10.40% |
| Dec 31, 2023 | 33.22% | 48.32% | 20.07% | 12.45% | 11.46% |
| Dec 31, 2022 | 26.65% | 22.54% | 17.89% | 10.41% | 10.18% |
| Dec 31, 2021 | 32.49% | -5.88% | 10.63% | 8.65% | 14.45% |
| Dec 31, 2020 | 24.63% | -135.71% | 0.87% | 5.94% | 3.95% |
| Dec 31, 2019 | 28.59% | — | 32.29% | 6.27% | 13.58% |
| Dec 31, 2018 | 28.18% | — | 27.52% | 3.63% | 18.28% |
| Dec 31, 2017 | 22.75% | — | 18.46% | 3.94% | 12.89% |
| Dec 31, 2016 | 19.03% | — | 19.87% | 0.59% | 13.22% |
| Dec 31, 2015 | 17.82% | — | 27.66% | 10.57% | 14.39% |
| Dec 31, 2014 | 17.34% | — | 28.69% | 10.84% | 12.57% |
| Dec 31, 2013 | 19.87% | — | 27.86% | 10.19% | 0.06% |
| Dec 31, 2012 | 19.82% | — | 26.98% | 10.18% | 10.40% |
| Dec 31, 2011 | 20.38% | — | 24.25% | 9.47% | 10.65% |
| Dec 31, 2010 | 20.55% | — | 17.10% | 9.75% | 8.83% |
| Dec 31, 2009 | 20.01% | — | 20.93% | 8.35% | 4.00% |
| Dec 31, 2008 | 18.34% | — | 10.26% | 5.87% | 3.04% |
| Dec 31, 2007 | 10.51% | — | 11.15% | 6.50% | 7.15% |
| Dec 31, 2006 | 16.42% | — | 6.63% | 5.03% | 7.25% |
| Dec 31, 2005 | 12.72% | — | 20.02% | 6.01% | 7.76% |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Consumer Services)
McDonald’s Corp., net profit margin, long-term trends, comparison to sector (consumer services)
| McDonald’s Corp. | Consumer Services | |
|---|---|---|
| Dec 31, 2024 | 31.72% | 20.37% |
| Dec 31, 2023 | 33.22% | 22.32% |
| Dec 31, 2022 | 26.65% | 17.09% |
| Dec 31, 2021 | 32.49% | 17.21% |
| Dec 31, 2020 | 24.63% | 2.53% |
| Dec 31, 2019 | 28.59% | 21.75% |
| Dec 31, 2018 | 28.18% | 22.44% |
| Dec 31, 2017 | 22.75% | 16.99% |
| Dec 31, 2016 | 19.03% | 15.95% |
| Dec 31, 2015 | 17.82% | 17.69% |
| Dec 31, 2014 | 17.34% | 17.17% |
| Dec 31, 2013 | 19.87% | 14.74% |
| Dec 31, 2012 | 19.82% | 17.49% |
| Dec 31, 2011 | 20.38% | 17.69% |
| Dec 31, 2010 | 20.55% | 16.62% |
| Dec 31, 2009 | 20.01% | 15.28% |
| Dec 31, 2008 | 18.34% | 13.20% |
| Dec 31, 2007 | 10.51% | 9.50% |
| Dec 31, 2006 | 16.42% | 13.49% |
| Dec 31, 2005 | 12.72% | 11.71% |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Discretionary)
McDonald’s Corp., net profit margin, long-term trends, comparison to industry (consumer discretionary)
| McDonald’s Corp. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2024 | 31.72% | 8.74% |
| Dec 31, 2023 | 33.22% | 7.92% |
| Dec 31, 2022 | 26.65% | 5.15% |
| Dec 31, 2021 | 32.49% | 9.20% |
| Dec 31, 2020 | 24.63% | 5.24% |
| Dec 31, 2019 | 28.59% | 5.92% |
| Dec 31, 2018 | 28.18% | 6.19% |
| Dec 31, 2017 | 22.75% | 4.38% |
| Dec 31, 2016 | 19.03% | 5.77% |
| Dec 31, 2015 | 17.82% | 6.37% |
| Dec 31, 2014 | 17.34% | 4.66% |
| Dec 31, 2013 | 19.87% | 5.29% |
| Dec 31, 2012 | 19.82% | 5.32% |
| Dec 31, 2011 | 20.38% | 8.80% |
| Dec 31, 2010 | 20.55% | 5.80% |
| Dec 31, 2009 | 20.01% | 4.94% |
| Dec 31, 2008 | 18.34% | 0.22% |
| Dec 31, 2007 | 10.51% | 3.23% |
| Dec 31, 2006 | 16.42% | 0.73% |
| Dec 31, 2005 | 12.72% | 4.49% |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).