Return on Equity (ROE)
since 2005
Calculation
McDonald’s Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Shareholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | — | = | 100 | × | 8,563) | ÷ | (1,791) |
| Dec 31, 2024 | — | = | 100 | × | 8,223) | ÷ | (3,797) |
| Dec 31, 2023 | — | = | 100 | × | 8,469) | ÷ | (4,707) |
| Dec 31, 2022 | — | = | 100 | × | 6,177) | ÷ | (6,003) |
| Dec 31, 2021 | — | = | 100 | × | 7,545) | ÷ | (4,601) |
| Dec 31, 2020 | — | = | 100 | × | 4,731) | ÷ | (7,825) |
| Dec 31, 2019 | — | = | 100 | × | 6,025) | ÷ | (8,210) |
| Dec 31, 2018 | — | = | 100 | × | 5,924) | ÷ | (6,258) |
| Dec 31, 2017 | — | = | 100 | × | 5,192) | ÷ | (3,268) |
| Dec 31, 2016 | — | = | 100 | × | 4,687) | ÷ | (2,204) |
| Dec 31, 2015 | 63.90% | = | 100 | × | 4,529) | ÷ | 7,088) |
| Dec 31, 2014 | 37.02% | = | 100 | × | 4,758) | ÷ | 12,853) |
| Dec 31, 2013 | 34.89% | = | 100 | × | 5,586) | ÷ | 16,010) |
| Dec 31, 2012 | 35.73% | = | 100 | × | 5,465) | ÷ | 15,294) |
| Dec 31, 2011 | 38.24% | = | 100 | × | 5,503) | ÷ | 14,390) |
| Dec 31, 2010 | 33.80% | = | 100 | × | 4,946) | ÷ | 14,634) |
| Dec 31, 2009 | 32.43% | = | 100 | × | 4,551) | ÷ | 14,034) |
| Dec 31, 2008 | 32.23% | = | 100 | × | 4,313) | ÷ | 13,383) |
| Dec 31, 2007 | 15.67% | = | 100 | × | 2,395) | ÷ | 15,280) |
| Dec 31, 2006 | 22.93% | = | 100 | × | 3,544) | ÷ | 15,458) |
| Dec 31, 2005 | 17.18% | = | 100 | × | 2,602) | ÷ | 15,146) |
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), 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 return on equity (ROE) exhibited considerable fluctuation between 2005 and 2015, followed by a period of unavailable values and then stabilization. Net income generally increased over the period, but significant changes in shareholders’ equity heavily influenced the ROE calculation.
- Initial Growth and Volatility (2005-2008)
- From 2005 to 2008, ROE demonstrated an initial increase from 17.18% to a peak of 32.23%. This period coincided with increasing net income and a decrease in shareholders’ equity. The substantial increase in 2008 suggests a significant improvement in profitability relative to the equity base, or a more substantial reduction in equity.
- Peak and Subsequent Decline (2009-2014)
- ROE remained high between 2009 and 2011, fluctuating between 32.43% and 38.24%. A slight decline was observed in 2012 and 2013, but ROE remained above 34%. In 2014, ROE increased sharply to 37.02%, despite a decrease in net income, indicating a more pronounced reduction in shareholders’ equity.
- Dramatic Shift and Missing Values (2015-2018)
- In 2015, ROE experienced a dramatic increase to 63.90%. This was driven by a substantial decrease in shareholders’ equity, which transitioned from positive values to a significant deficit. Following 2015, ROE values are unavailable for the subsequent three years. The negative shareholders’ equity during this period renders the ROE calculation less meaningful in a traditional interpretation.
- Stabilization with Negative Equity (2019-2025)
- From 2019 onwards, ROE values remain absent. Shareholders’ equity remained negative throughout this period, fluctuating between -8,210 and -1,791 US$ in millions. While net income varied, the consistently negative equity base prevents a standard assessment of ROE. The continued negative equity suggests ongoing financial restructuring or significant share repurchase activity coupled with losses.
The relationship between net income and ROE is not consistently direct due to the substantial changes in shareholders’ equity. The period from 2015 onwards is particularly noteworthy, as the negative equity significantly alters the interpretation of the ROE metric.
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Comparison to Competitors
McDonald’s Corp., ROE, long-term trends, comparison to competitors
| McDonald’s Corp. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | DoorDash, Inc. | Starbucks Corp. | |
|---|---|---|---|---|---|---|
| Dec 31, 2025 | — | 30.63% | — | 54.26% | 9.32% | — |
| Dec 31, 2024 | — | 31.48% | — | 41.97% | 1.58% | — |
| Dec 31, 2023 | — | 58.69% | — | 40.13% | -8.20% | — |
| Dec 31, 2022 | — | 34.05% | 109.92% | 37.97% | -20.21% | — |
| Dec 31, 2021 | — | -7.37% | 18.86% | 28.42% | -10.03% | — |
| Dec 31, 2020 | — | -158.00% | 1.21% | 17.61% | -9.81% | — |
| Dec 31, 2019 | — | — | 82.00% | 20.81% | — | — |
| Dec 31, 2018 | — | — | 45.51% | 12.25% | — | 386.34% |
| Dec 31, 2017 | — | — | 20.79% | 12.92% | — | 52.93% |
| Dec 31, 2016 | — | — | 21.74% | 1.64% | — | 47.89% |
| Dec 31, 2015 | 63.90% | — | 29.01% | 22.35% | — | 47.39% |
| Dec 31, 2014 | 37.02% | — | 28.27% | 22.13% | — | 39.23% |
| Dec 31, 2013 | 34.89% | — | 27.39% | 21.29% | — | 0.19% |
| Dec 31, 2012 | 35.73% | — | 36.43% | 22.31% | — | 27.09% |
| Dec 31, 2011 | 38.24% | — | 41.04% | 20.58% | — | 28.41% |
| Dec 31, 2010 | 33.80% | — | 29.09% | 22.07% | — | 25.73% |
| Dec 31, 2009 | 32.43% | — | 37.04% | 18.03% | — | 12.83% |
| Dec 31, 2008 | 32.23% | — | 26.49% | 12.56% | — | 12.67% |
| Dec 31, 2007 | 15.67% | — | 27.12% | 12.55% | — | 29.45% |
| Dec 31, 2006 | 22.93% | — | 21.36% | 8.74% | — | 25.32% |
| Dec 31, 2005 | 17.18% | — | 52.22% | 12.19% | — | 23.65% |
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), 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., ROE, long-term trends, comparison to sector (consumer services)
| McDonald’s Corp. | Consumer Services | |
|---|---|---|
| Dec 31, 2025 | — | 371.72% |
| Dec 31, 2024 | — | 481.49% |
| Dec 31, 2023 | — | 863.51% |
| Dec 31, 2022 | — | 506.32% |
| Dec 31, 2021 | — | 159.36% |
| Dec 31, 2020 | — | — |
| Dec 31, 2019 | — | — |
| Dec 31, 2018 | — | 284.52% |
| Dec 31, 2017 | — | 71.55% |
| Dec 31, 2016 | — | 64.84% |
| Dec 31, 2015 | 63.90% | 43.28% |
| Dec 31, 2014 | 37.02% | 33.77% |
| Dec 31, 2013 | 34.89% | 27.00% |
| Dec 31, 2012 | 35.73% | 33.45% |
| Dec 31, 2011 | 38.24% | 35.81% |
| Dec 31, 2010 | 33.80% | 31.52% |
| Dec 31, 2009 | 32.43% | 29.09% |
| Dec 31, 2008 | 32.23% | 28.45% |
| Dec 31, 2007 | 15.67% | 17.62% |
| Dec 31, 2006 | 22.93% | 22.82% |
| Dec 31, 2005 | 17.18% | 18.57% |
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), 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., ROE, long-term trends, comparison to industry (consumer discretionary)
| McDonald’s Corp. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2025 | — | 20.91% |
| Dec 31, 2024 | — | 27.93% |
| Dec 31, 2023 | — | 29.93% |
| Dec 31, 2022 | — | 20.78% |
| Dec 31, 2021 | — | 33.71% |
| Dec 31, 2020 | — | 24.49% |
| Dec 31, 2019 | — | 34.62% |
| Dec 31, 2018 | — | 34.33% |
| Dec 31, 2017 | — | 22.85% |
| Dec 31, 2016 | — | 28.74% |
| Dec 31, 2015 | 63.90% | 29.03% |
| Dec 31, 2014 | 37.02% | 20.60% |
| Dec 31, 2013 | 34.89% | 20.34% |
| Dec 31, 2012 | 35.73% | 21.97% |
| Dec 31, 2011 | 38.24% | 34.92% |
| Dec 31, 2010 | 33.80% | 24.34% |
| Dec 31, 2009 | 32.43% | 25.32% |
| Dec 31, 2008 | 32.23% | 1.64% |
| Dec 31, 2007 | 15.67% | 16.06% |
| Dec 31, 2006 | 22.93% | 3.84% |
| Dec 31, 2005 | 17.18% | 19.92% |
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), 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).