McDonald’s Corp. (NYSE:MCD)

Gross Profit Margin

The gross profit margin exhibits a consistent upward trend over the observed periods. Starting at 51.37% in March 2021, it steadily increased, reaching peaks around 57% during 2023 and early 2024. Towards the later periods in 2024 and early 2025, the margin maintained a stable level near 57%, indicating sustained profitability at the gross level.

Operating Profit Margin

The operating profit margin shows more variability across the quarters. Initially, it rose from 40.33% in March 2021 to a peak near 44.84% in late 2021, followed by a decline to below 40% during mid-2022. Subsequently, it recovered and gradually increased to around 46% by early 2025. This pattern suggests fluctuations in operating efficiency and cost management, but an overall improvement towards the end of the timeframe.

Net Profit Margin

Net profit margin experienced notable fluctuations within the reviewed timeframe. It initially increased from 26.31% in early 2021 to above 32% in late 2021. Subsequently, there was a decline to below 26.7% mid-2022, followed by a strong recovery that pushed the margin above 33% in late 2023. Stability is observed afterwards with slight decreases but generally maintaining above 31% through early 2025. This reflects periodic impacts on bottom-line profitability but overall strong net profitability levels.

Return on Assets (ROA)

The return on assets showed an increasing trend from 10.1% in the first quarter of 2021 to a peak near 16.06% in early 2024. Thereafter, a gradual decline is seen with values slightly decreasing to around 13.89% by the third quarter of 2025. This pattern implies improved asset utilization efficiency through most of the timeframe, with some reduction in later quarters possibly due to changes in asset base or earnings quality.

Return on Equity (ROE)

Return on equity data were not available for analysis during the entire period.

The financial data reveals a consistent upward trend in revenues over the period analyzed, with fluctuations observed within quarters. Starting from a base of approximately 5,125 million US dollars in the first quarter of 2021, revenues steadily increase, reaching over 7,000 million US dollars by the third quarter of 2025. Notably, there are seasonal variations where certain quarters consistently show higher revenues, particularly the third quarters across multiple years.

In parallel, the gross margin shows a general increase in absolute terms, growing from about 2,668 million US dollars in the first quarter of 2021 to above 4,100 million US dollars in the third quarter of 2025. This growth aligns with the revenue trend but also reflects improved operational efficiency or cost management, given the growing gross profit margin percentage.

Gross Profit Margin Percentage

The gross profit margin percentage exhibits a steady and positive trend throughout the period. Commencing at around 51.37% in early 2021, it shows incremental increases quarter by quarter, peaking near 57.5% in 2023 and maintaining levels above 56% through to 2025. This steady improvement suggests enhancements in profitability, possibly resulting from better pricing strategies, cost controls, or a more favorable product mix.

Seasonality and Cyclical Patterns

The data suggests some seasonal cyclicality, with revenues and gross margins typically peaking during the mid-year quarters, particularly the third quarter. This pattern indicates potentially higher consumer demand or promotional activities during those periods.

Stability and Growth

Overall, the company demonstrates stable and sustained growth in both revenues and gross margins. The gross profit margin's consistent increase indicates enhanced effectiveness in managing production or operating costs relative to revenues. The ability to convert a growing revenue base into a higher absolute gross margin and an improved margin percentage is indicative of sound operational and financial management.

In summary, the data displays a positive trajectory in financial performance, marked by rising revenues and improving profitability margins. The upward momentum and margin stability imply a robust business model and efficient cost control mechanisms over the observed timeframe.

The financial performance over the analyzed periods demonstrates notable fluctuations and overall positive trends in key operational metrics.

Operating Income

Operating income exhibits considerable volatility, ranging from a low of 1,712 million US dollars in June 2022 to a peak of 3,357 million US dollars in September 2025. There is a general upward trajectory in the latter periods, especially from the first quarter of 2023 onwards, signaling improved profitability and possibly enhanced operational efficiencies or revenue growth impacts in recent quarters.

Revenues

Revenues show a cyclical pattern with incremental growth over the years. Starting from 5,125 million US dollars in the first quarter of 2021, revenues increase steadily to a high of 7,078 million US dollars in September 2025. Seasonal fluctuations are apparent, but the trend indicates a robust expansion in topline performance over the period analyzed. The regular increases post-2022 suggest strengthening consumer demand or successful market penetration.

Operating Profit Margin

The operating profit margin maintains a relatively stable but improving trend, ranging from around 39.48% to just over 46% in the latest quarters. Margins demonstrate resilience despite revenue and income fluctuations, with a noticeable improvement from mid-2022 onward. This stability and gradual increase imply effective cost control measures and beneficial operational leverage, contributing to stronger profitability ratios in recent periods.

Overall, the data reflects a company experiencing growth in revenues accompanied by increasing operating income and improving operating profit margins. The upward trends in profitability metrics, despite some volatility, indicate strengthened operational performance and efficiency gains over the evaluated timeframe.

The financial performance across the examined quarters reveals notable patterns in net income, revenues, and net profit margin, indicating fluctuations and growth phases within the period analyzed.

Net Income

Net income demonstrates variability with a general pattern of increase followed by periods of decline. Starting from a base of 1,537 million US dollars in the first quarter of 2021, it increased sharply to a peak of 2,219 million mid-2021, then experienced some decreases and recoveries through 2022 and 2023.

From 2023 onwards, net income maintained a relatively high level, fluctuating between approximately 1,800 million and 2,310 million US dollars. Notably, the last quarters in 2024 and 2025 show net income stabilizing around the 2,000 to 2,300 million range, suggesting a period of relative earnings stability with slight upward tendencies in some quarters.

Revenues

Revenues follow a generally upward trend over the observed timeline, reflecting growth in the company’s total income generation. Starting at 5,125 million US dollars in early 2021, revenues increase steadily, with occasional plateaus, reaching over 7,000 million US dollars in the first quarter of 2025.

While some quarterly fluctuations occur, notably around late 2021 and 2024, the overall trajectory is positive, indicating expanding sales or service volume contributing to the revenue base.

Net Profit Margin

The net profit margin percentages exhibit a relatively stable pattern with mild oscillations around the low 30% range. The margin started at approximately 26.31% in early 2021, rising to peaks above 32% in late 2021 and 2023 periods.

Periods with lower net profit margins, such as mid-2022, correlate with dips in net income despite stable revenues, suggesting margin pressure possibly from increased costs or other operational factors.

Conversely, quarters with higher margins align with increased net incomes, reflecting effective control of expenses or beneficial pricing strategies. Margins generally hold above 30% since 2023, pointing to sustained profitability.

In summary, the overall analysis reveals a steady increase in revenues complemented by fluctuating net income and relatively stable net profit margins. The data suggests the company successfully enhanced its revenue base over time while managing profitability to maintain margins in the low 30% range. The intermittent dips in net income relative to revenue could indicate periods of higher costs or other financial pressures, but overall profitability remains solid and consistent towards the later quarters analyzed.

The financial performance over the observed periods demonstrates notable fluctuations in net income and a persistently negative shareholders' equity. The net income exhibits a pattern of volatility with intermittent growth and decline phases, indicating variable profitability across quarters.

Net Income Trends

The net income initially increased substantially from 1,537 million USD in the first quarter of 2021 to a peak of 2,219 million USD in the second quarter of 2021. Following this peak, the net income experienced some decreases and recoveries, including a notable dip to 1,104 million USD in the first quarter of 2022. From mid-2022 onwards, net income again showed periods of increase and stabilization, reaching values above 2,200 million USD in some quarters of 2023 and 2024. By the third quarter of 2025, net income stabilized at approximately 2,278 million USD, indicating general recovery and potential improved operational efficiency.

Shareholders’ Equity Analysis

Shareholders’ equity remained negative throughout the entire period, reflecting an ongoing deficit situation for the company’s net assets. Although the equity deficit narrowed from -7,236 million USD in the first quarter of 2021 to -2,163 million USD by the third quarter of 2025, fluctuations were evident. Significant reductions occurred early in the series, followed by phases where the deficit deepened again, suggesting recurring financial pressures or obligations impacting net worth. The general trend towards a decreasing negative balance by 2025 may suggest efforts toward financial restructuring or improved asset management.

Ratio Data

The return on equity (ROE) data were not provided, which limits direct assessment of profitability relative to shareholder investment. However, given the persistent negative equity, ROE might be negative or not meaningful in conventional terms during most of the periods.

Overall Insights

The financial data depict a company experiencing substantial variability in profitability alongside a persistent yet gradually improving negative equity position. Net income recovery in later periods is promising, but the ongoing negative equity poses concerns regarding long-term financial stability. Analytical focus on cash flow, debt levels, and capital structure would be essential to understand underlying causes and potential risks.

The financial data reveals several notable trends and insights regarding profitability, asset base, and return on assets (ROA) over the analyzed periods.

Net Income

Net income demonstrates a generally fluctuating pattern across quarters. Initially, there is a strong increase from early 2021 to late 2021, peaking at 2219 million US dollars in the second quarter of 2021 before a minor decline towards the end of that year. In early 2022, net income notably dips but recovers in subsequent quarters, reaching higher figures in mid to late 2023, with values consistently above 2000 million US dollars. The first quarter of 2024 starts with a slight decline but rebounds through the latter part of 2024 and into early 2025. Overall, despite quarter-to-quarter variability, a positive long-term trend with ups and downs can be observed.

Total Assets

Total assets display a relatively steady yet somewhat volatile trajectory. There is a general upward movement from around 51,103 million US dollars in early 2021 to approximately 60,608 million US dollars by late 2025. However, the asset base contracts slightly during mid-2022 before resuming growth through 2023 and beyond. The increase in total assets suggests ongoing investment or acquisition of resources, with the asset size increasing by nearly 18% over the period analyzed.

Return on Assets (ROA)

ROA percentages indicate improving efficiency in asset utilization over the timeline. Starting at 10.1% in the first quarter of 2021, ROA rises steadily, consistently remaining above 12% from mid-2021 onwards. There is a notable peak at 16% in the third quarter of 2023, followed by slight fluctuations but generally maintaining a range between approximately 13.9% and 16.1%. This sustained high level of ROA suggests that the company effectively converts its asset base into net income with relatively strong profitability.

In summary, the financial indicators reflect a company managing growth in assets while maintaining and enhancing profitability metrics over the course of nearly five years. The fluctuations in net income, alongside steady asset growth and consistently strong ROA, point to resilient performance amidst varying economic conditions.