McDonald’s Corp. (NYSE:MCD)

Gross Profit Margin

The gross profit margin exhibited a consistent upward trend starting from 50.77% in the first observed quarter through 56.82% in the final quarter. The margin gradually increased quarter-over-quarter with minor fluctuations, peaking around the 16th quarter. This indicates an overall improvement in the company’s efficiency in managing production costs relative to revenue over the period analyzed.

Operating Profit Margin

The operating profit margin showed a notable increase initially, rising from 38.13% to a high of approximately 45.99% by the 17th quarter. However, there were some fluctuations during this period, including a temporary decline to a low of 39.48% around the 10th quarter. More recently, the margin seems to stabilize around 45%, suggesting a steady operational performance with effective control over operating expenses.

Net Profit Margin

The net profit margin followed a positive growth pattern, increasing from 24.63% to a peak of 33.36% between the 8th and 17th quarters. After peaking, it experienced a slight decline but remained relatively stable around the low 30% range thereafter. The trend illustrates improving profitability at the bottom-line level, supported by efficient expense and tax management alongside growing revenue.

Return on Assets (ROA)

The return on assets demonstrated a general upward movement, rising from 8.99% to a high near 16.06% over the observed quarters. Despite minor short-term declines, ROA maintained a steady trajectory upward, indicating enhanced asset utilization to generate profits. This reflects efficiency in managing company assets and generating earnings from them over the period.

Return on Equity (ROE)

Data for return on equity was not available, thus no analysis is possible for this metric.

The financial data reflects the quarterly performance over several years. The trends in gross margin, revenues, and gross profit margin percentage provide insights into operational efficiency and market dynamics.

Gross Margin

The gross margin exhibits fluctuation across quarters but generally demonstrates a gradual upward trend over the observed period. Starting at 2,342 million USD in the first quarter of 2020, it reached a peak around the third quarter of 2023 at approximately 3,864 million USD before experiencing a slight decrease toward early 2025, ending at 3,337 million USD. This pattern indicates periods of strong profitability with occasional declines, possibly linked to seasonal factors, cost variations, or operational adjustments.

Revenues

Revenues display a comparable pattern with gross margin, beginning at 4,714 million USD in the first quarter of 2020 and rising to a peak of 6,873 million USD in the third quarter of 2024. Following this peak, there is a moderate decline noted in early 2025, with revenues registering 5,956 million USD by the last available quarter. The steady increase in revenue over the years suggests stable demand and growth, though the recent dip may indicate market saturation, increased competition, or macroeconomic influences affecting sales volume.

Gross Profit Margin Percentage

The gross profit margin percentage has shown a consistent upward trend from 50.77% in the third quarter of 2020 to a high of approximately 57.53% in the first quarter of 2023. Since then, it remains relatively stable, fluctuating slightly but maintaining levels above 56%. This rise reflects improving cost control and operational efficiency, as profit margins are expanding even with rising revenues. The leveling off toward the end of the period suggests that the optimization of costs has reached a mature state.

Overall, the data reveals strengthening profitability with increasing revenues and profit margins over the long term, notwithstanding periodic variability. The recent decline in both revenue and gross margin warrants monitoring to understand underlying causes and to implement corrective strategies if necessary.

The operating income demonstrates notable fluctuations over the reported quarters, reflecting a pattern of variability with some periods experiencing significant growth followed by moderation or decline. Beginning with a lower value in early 2020, the operating income increased markedly in the latter half of the year, peaking in the third quarter of 2021. Subsequent quarters showed continued strength with some oscillations but generally maintaining higher levels compared to the early 2020 baseline. Despite occasional dips, the overall trend indicates resilience and recovery, with operating income values frequently surpassing those recorded in the initial periods.

Revenues exhibit a growth trend with periodic volatility. After a decline in the first half of 2020, revenues rebounded strongly in the third and fourth quarters, maintaining an upward trajectory into 2021. This positive momentum continued through most of the subsequent quarters, with revenues peaking around late 2024 before a slight decrease is observed in the early quarters of 2025. The data suggest an overall expansion in sales or service volume with short-term fluctuations likely influenced by external factors impacting the business environment.

The operating profit margin, reported quarterly starting from the second quarter of 2020, reflects a generally high and stable percentage, predominantly in the range of approximately 38% to 46%. Over time, the margin shows a slight upward trend, with some periodic minor contractions but mostly stable elevated levels. The margin climbed from just above 38% in mid-2020 to consistently above 44% from early 2021 onward, indicating improved operational efficiency or pricing power relative to costs. Such margins reflect an effective control of operating expenses relative to revenue and suggest a profitable operational structure sustaining over multiple periods.

Operating Income Trends

Fluctuations with overall growth from 2020 lows to higher values by 2023-2024; peaks observed in late 2021 and mid-2023;

Revenue Patterns

Initial decrease in early 2020, followed by recovery and steady increase through 2021-2024, slightly tapering in early 2025;

Operating Profit Margin

Sustained high margins from mid-2020, with a gradual increase and stability mostly above 40%, indicating robust profitability;

Interrelationships

Higher revenues generally correspond with higher operating income and margin stability, suggesting efficient operations even as scale varies;

Seasonal or Periodic Observations

Some quarters show seasonal peak operating income and revenues, potentially reflecting business cycles or promotional periods;

Recent Developments

Operating income and revenues peaked around 2023 onwards with some slight declines by early 2025, but operating margins remained consistently strong showing ongoing operational strength;

The financial data reveals notable variations and trends across the assessed quarterly periods.

Net Income

Net income exhibits significant fluctuations over the timeline. Initially, in early 2020, net income experienced a decline from $1,107 million in March to $484 million in June, followed by a sharp recovery to $1,763 million in September. Throughout 2021, net income grew steadily, peaking above $2,200 million mid-year, but then decreased towards the end of the year. In 2022, net income dropped again in the first quarter but showed a recovery in the subsequent quarters, with values oscillating around $1,100 million to $1,900 million. The pattern of recovery and decline continues in the years 2023 and 2024, peaking multiple times above $2,300 million in certain quarters and then dipping again, with a downward trend approaching early 2025.

Revenues

Revenues demonstrate a generally increasing trend with some variability. Starting from $4,714 million in March 2020, revenues declined in the middle of 2020 but rebounded strongly towards the end of that year and into 2021. In 2021, revenues steadily increased, reaching a peak of over $6,200 million in the third quarter. The revenue levels remain relatively elevated through 2022 and 2023, with values fluctuating mostly between $5,600 million and $6,900 million. There is a slight decline observed toward the end of the period in early 2025, suggesting some softness in sales volume or pricing power during this recent period.

Net Profit Margin

Net profit margin data, available from late 2020 onward, indicates a positive trend with steady improvement. Initially registered at about 24.63% in September 2020, the margin increased consistently, peaking above 33% in various quarters of 2023 and early 2024. The margin remains stable and strong, ranging mostly between 31% and 33%, reflecting efficient cost management and profitability despite revenue fluctuations. This trend suggests the company's ability to maintain consistent profitability proportional to its revenues over the examined period.

Overall, the data reflects a company experiencing cyclical financial performance with strong recoveries following downturns, particularly around mid-2020. Revenues have generally trended higher over time, while net income shows greater volatility, though profitability ratios improved and stabilized notably after 2020. The elevated net profit margins in recent years indicate sustained operational efficiency and effective cost control mechanisms.

The net income of the company displays considerable fluctuation throughout the presented quarters. Initially, there is a significant drop from 1107 million US$ in March 2020 to 484 million US$ in June 2020, followed by a sharp recovery reaching a peak of 1763 million US$ by September 2020. Subsequent quarters experience variability with notable peaks in June and September 2021 (2219 and 2150 million US$, respectively). Moving into the 2022 and 2023 periods, net income generally strengthens with intermittent decreases, notably dropping from 2317 million US$ in September 2023 to 1929 million US$ in December 2023. The trend into 2024 maintains a relatively stable upper performance, with net income fluctuating around 2000 to 2255 million US$, although a slight downtrend appears towards March 2025 where earnings reduce to 1868 million US$.

Shareholders’ equity shows a persistent deficit throughout the periods, with values generally trending toward improvement over the long term. Starting from a deficit of -9293 million US$ in March 2020, the negative equity gradually lessens, reaching a low point of approximately -3464 million US$ by March 2025. The trend is somewhat uneven, with temporary increases in the deficit seen in mid-2022 and late 2023, but overall the equity position appears to be strengthening. Notably, the largest deficit occurs early in the dataset, with small but persistent gains over time culminating in a reduced deficit by the end of the timeline.

The absence of reported Return on Equity (ROE) percentages limits direct analysis of profitability relative to shareholders’ equity. However, combining the observed net income trends with the gradual reduction in equity deficit suggests improving operational performance and a potential move towards positive equity levels in the future.

Net Income Analysis

Exhibits volatility with sharp declines and recoveries, achieving peak values mainly in mid to late 2021 and maintaining relatively high but variable levels through 2023 and 2024.

Shareholders’ Equity (Deficit)

Consistently negative but trending toward decreased deficit magnitude, indicating gradual strengthening of the company’s equity base despite periods of minor regression.

Financial Performance Outlook

The combination of fluctuating but generally solid net income performance and an improving equity deficit suggests enhanced overall financial health with potential for positive returns on equity when fully recovered.

The financial data reveals several noteworthy trends regarding profitability, asset management, and overall financial performance over the observed periods.

Net Income Patterns

Net income demonstrates considerable volatility quarter to quarter, with initial fluctuations from 1107 million US dollars in the first quarter of 2020 to a low of 484 million in the second quarter of the same year, followed by a substantial increase in subsequent quarters. There is a general growth trajectory observed from early 2021 through late 2023, during which net income consistently exceeds 1,800 million US dollars in most quarters, peaking around 2,310 million in mid-2023. However, towards 2024 and early 2025, net income displays a declining trend, reducing to approximately 1,868 million US dollars by the first quarter of 2025.

Total Assets Movement

Total assets exhibit relatively stable fluctuations without dramatic shifts. Initial values near 50,000 million US dollars fluctuate modestly, with some decreases observed around mid-2022 and increases peaking at approximately 56,147 million US dollars by the last quarter of 2023. Total assets remain in a range between approximately 48,000 and 56,000 million US dollars across the periods, suggesting a stable asset base with modest growth tendencies towards later quarters.

Return on Assets (ROA) Insights

Return on Assets (ROA) begins to be reported starting in late 2020, showing a positive and improving trend. It starts at 8.99% and steadily increases, crossing the 13% threshold in early 2021. Following this, ROA remains generally above 12%, peaking near 16% in mid to late 2023, indicating enhanced efficiency in generating net income from the asset base. Though some minor fluctuations appear in 2024, ROA maintains robust levels between approximately 14% and 16%, suggesting consistent profitability relative to asset utilization.

Overall Trends and Insights

Collectively, the data indicates that while net income is subject to short-term volatility, the company manages to sustain growth over the longer term with peaks in profitability evident especially in 2023. The stable asset base supports this performance, with manageable fluctuations reflecting operational adjustments or investments. The improving and sustained high ROA values demonstrate effective asset utilization and strong return generation, reinforcing the company’s operational efficiency over the period. However, the dip in net income observed towards early 2025 could warrant further examination to determine causes and implications.