Microsoft Excel LibreOffice Calc

McDonald’s Corp. (MCD)


Analysis of Profitability Ratios

Beginner level


Profitability Ratios (Summary)

McDonald’s Corp., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Return on Sales
Gross profit margin 51.30% 46.54% 41.45% 38.52% 38.10%
Operating profit margin 41.96% 41.86% 31.45% 28.12% 28.97%
Net profit margin 28.18% 22.75% 19.03% 17.82% 17.34%
Return on Investment
Return on equity (ROE) 63.90% 37.02%
Return on assets (ROA) 18.06% 15.36% 15.11% 11.94% 13.88%

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-24).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. McDonald’s Corp.’s gross profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. McDonald’s Corp.’s operating profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. McDonald’s Corp.’s net profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity.
ROA A profitability ratio calculated as net income divided by total assets. McDonald’s Corp.’s ROA improved from 2016 to 2017 and from 2017 to 2018.

Gross Profit Margin

McDonald’s Corp., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in thousands)
Gross margin 10,786,000  10,620,800  10,204,700  9,789,200  10,455,700 
Revenues 21,025,200  22,820,400  24,621,900  25,413,000  27,441,300 
Profitability Ratio
Gross profit margin1 51.30% 46.54% 41.45% 38.52% 38.10%
Benchmarks
Gross Profit Margin, Competitors2
Booking Holdings Inc. 100.00% 98.02% 96.01% 93.15% 89.84%
Delta Air Lines Inc. 56.25% 57.91% 59.79% 58.00% 43.10%
Marriott International Inc. 17.70% 16.17% 15.38% 14.66% 14.25%
Starbucks Corp. 58.84% 59.63% 60.07% 59.36% 58.30%

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-24).

1 2018 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenues
= 100 × 10,786,000 ÷ 21,025,200 = 51.30%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. McDonald’s Corp.’s gross profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.

Operating Profit Margin

McDonald’s Corp., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in thousands)
Operating income 8,822,600  9,552,700  7,744,500  7,145,500  7,949,200 
Revenues 21,025,200  22,820,400  24,621,900  25,413,000  27,441,300 
Profitability Ratio
Operating profit margin1 41.96% 41.86% 31.45% 28.12% 28.97%
Benchmarks
Operating Profit Margin, Competitors2
Booking Holdings Inc. 36.77% 35.79% 27.05% 35.33% 36.41%
Delta Air Lines Inc. 11.85% 14.82% 17.54% 19.17% 5.47%
Marriott International Inc. 11.40% 10.30% 8.01% 9.32% 8.40%
Starbucks Corp. 15.71% 18.47% 19.57% 18.79% 18.73%
Operating Profit Margin, Sector
Travel & Leisure 20.46% 21.88% 20.41% 21.25% 16.40%
Operating Profit Margin, Industry
Consumer Services 7.94% 8.26% 8.39% 8.55% 8.04%

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-24).

1 2018 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 8,822,600 ÷ 21,025,200 = 41.96%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. McDonald’s Corp.’s operating profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.

Net Profit Margin

McDonald’s Corp., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in thousands)
Net income 5,924,300  5,192,300  4,686,500  4,529,300  4,757,800 
Revenues 21,025,200  22,820,400  24,621,900  25,413,000  27,441,300 
Profitability Ratio
Net profit margin1 28.18% 22.75% 19.03% 17.82% 17.34%
Benchmarks
Net Profit Margin, Competitors2
Booking Holdings Inc. 27.52% 18.46% 19.87% 27.66% 28.69%
Delta Air Lines Inc. 8.86% 8.67% 11.03% 11.12% 1.63%
Marriott International Inc. 9.19% 5.99% 4.57% 5.93% 5.46%
Starbucks Corp. 18.28% 12.89% 13.22% 14.39% 12.57%
Net Profit Margin, Sector
Travel & Leisure 16.17% 12.59% 13.05% 13.97% 10.01%
Net Profit Margin, Industry
Consumer Services 5.10% 6.22% 5.16% 4.82% 4.62%

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-24).

1 2018 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 5,924,300 ÷ 21,025,200 = 28.18%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. McDonald’s Corp.’s net profit margin ratio improved from 2016 to 2017 and from 2017 to 2018.

Return on Equity (ROE)

McDonald’s Corp., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in thousands)
Net income 5,924,300  5,192,300  4,686,500  4,529,300  4,757,800 
Shareholders’ equity (deficit) (6,258,400) (3,268,000) (2,204,300) 7,087,900  12,853,400 
Profitability Ratio
ROE1 63.90% 37.02%
Benchmarks
ROE, Competitors2
Booking Holdings Inc. 45.51% 20.79% 21.74% 29.01% 28.27%
Delta Air Lines Inc. 28.75% 25.72% 35.59% 41.71% 7.48%
Marriott International Inc. 85.71% 36.77% 14.56%
Starbucks Corp. 386.34% 52.93% 47.89% 47.39% 39.23%
ROE, Sector
Travel & Leisure 103.44% 49.44% 47.50% 52.56% 32.01%
ROE, Industry
Consumer Services 21.73% 26.49% 21.18% 20.66% 18.72%

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-24).

1 2018 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity (deficit)
= 100 × 5,924,300 ÷ -6,258,400 =

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity.

Return on Assets (ROA)

McDonald’s Corp., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in thousands)
Net income 5,924,300  5,192,300  4,686,500  4,529,300  4,757,800 
Total assets 32,811,200  33,803,700  31,023,900  37,938,700  34,281,400 
Profitability Ratio
ROA1 18.06% 15.36% 15.11% 11.94% 13.88%
Benchmarks
ROA, Competitors2
Booking Holdings Inc. 17.62% 9.20% 10.76% 14.65% 16.21%
Delta Air Lines Inc. 6.53% 6.71% 8.53% 8.52% 1.22%
Marriott International Inc. 8.05% 5.73% 3.23% 14.12% 10.97%
Starbucks Corp. 18.70% 20.08% 19.66% 22.15% 19.23%
ROA, Sector
Travel & Leisure 12.40% 10.19% 10.52% 11.98% 8.81%
ROA, Industry
Consumer Services 6.18% 8.26% 6.81% 6.86% 6.77%

Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-24).

1 2018 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 5,924,300 ÷ 32,811,200 = 18.06%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. McDonald’s Corp.’s ROA improved from 2016 to 2017 and from 2017 to 2018.