Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

McDonald’s Corp. (NYSE:MCD)

Analysis of Profitability Ratios

Beginner level

Profitability Ratios (Summary)

McDonald’s Corp., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Return on Sales
Gross profit margin 50.77% 52.74% 51.30% 46.54% 41.45%
Operating profit margin 38.13% 43.03% 41.96% 41.86% 31.45%
Net profit margin 24.63% 28.59% 28.18% 22.75% 19.03%
Return on Investment
Return on equity (ROE)
Return on assets (ROA) 8.99% 12.68% 18.06% 15.36% 15.11%

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01).

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 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. McDonald’s Corp.’s operating profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. McDonald’s Corp.’s net profit margin ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. McDonald’s Corp.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020.

Gross Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Gross margin 9,752,100  11,115,300  10,786,000  10,620,800  10,204,700 
Revenues 19,207,800  21,076,500  21,025,200  22,820,400  24,621,900 
Profitability Ratio
Gross profit margin1 50.77% 52.74% 51.30% 46.54% 41.45%
Benchmarks
Gross Profit Margin, Competitors2
Starbucks Corp. 67.28% 67.83% 58.84% 59.63% 60.07%

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01).

1 2020 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenues
= 100 × 9,752,100 ÷ 19,207,800 = 50.77%

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 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Operating Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Operating income 7,324,000  9,069,800  8,822,600  9,552,700  7,744,500 
Revenues 19,207,800  21,076,500  21,025,200  22,820,400  24,621,900 
Profitability Ratio
Operating profit margin1 38.13% 43.03% 41.96% 41.86% 31.45%
Benchmarks
Operating Profit Margin, Competitors2
Starbucks Corp. 6.64% 15.38% 15.71% 18.47% 19.57%
Operating Profit Margin, Sector
Consumer Services 20.80% 27.63% 27.78% 30.28% 25.94%
Operating Profit Margin, Industry
Consumer Discretionary 8.11% 8.64% 8.99% 9.38% 9.10%

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01).

1 2020 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × 7,324,000 ÷ 19,207,800 = 38.13%

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 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Net Profit Margin

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Net income 4,730,500  6,025,400  5,924,300  5,192,300  4,686,500 
Revenues 19,207,800  21,076,500  21,025,200  22,820,400  24,621,900 
Profitability Ratio
Net profit margin1 24.63% 28.59% 28.18% 22.75% 19.03%
Benchmarks
Net Profit Margin, Competitors2
Starbucks Corp. 3.95% 13.58% 18.28% 12.89% 13.22%
Net Profit Margin, Sector
Consumer Services 13.24% 20.23% 22.83% 17.87% 16.34%
Net Profit Margin, Industry
Consumer Discretionary 6.43% 6.74% 6.71% 4.12% 6.19%

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01).

1 2020 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 4,730,500 ÷ 19,207,800 = 24.63%

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 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Return on Equity (ROE)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Net income 4,730,500  6,025,400  5,924,300  5,192,300  4,686,500 
Shareholders’ equity (deficit) (7,824,900) (8,210,300) (6,258,400) (3,268,000) (2,204,300)
Profitability Ratio
ROE1
Benchmarks
ROE, Competitors2
Starbucks Corp. 386.34% 52.93% 47.89%
ROE, Sector
Consumer Services 370.15% 203.94%
ROE, Industry
Consumer Discretionary 33.68% 42.91% 40.87% 23.48% 31.81%

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01).

1 2020 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity (deficit)
= 100 × 4,730,500 ÷ -7,824,900 =

2 Click competitor name to see calculations.


Return on Assets (ROA)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in thousands)
Net income 4,730,500  6,025,400  5,924,300  5,192,300  4,686,500 
Total assets 52,626,800  47,510,800  32,811,200  33,803,700  31,023,900 
Profitability Ratio
ROA1 8.99% 12.68% 18.06% 15.36% 15.11%
Benchmarks
ROA, Competitors2
Starbucks Corp. 3.16% 18.73% 18.70% 20.08% 19.66%
ROA, Sector
Consumer Services 6.90% 14.42% 18.33% 16.77% 16.55%
ROA, Industry
Consumer Discretionary 6.52% 7.55% 7.80% 4.68% 7.36%

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01).

1 2020 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 4,730,500 ÷ 52,626,800 = 8.99%

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 deteriorated from 2018 to 2019 and from 2019 to 2020.