Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
McDonald’s Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The analysis of profitability ratios indicates a period of initial volatility followed by a sustained recovery and eventual stabilization. A synchronized decline in margins was observed during the second and third quarters of 2022, which was subsequently reversed through a strong upward trend that peaked in early 2024 before entering a phase of steady-state performance.
- Gross Profit Margin
- A steady increase was recorded from 54.54% in March 2022 to a peak of 57.53% in March 2023. Following this peak, the margin remained highly stable, fluctuating within a narrow range between 56.62% and 57.42% through March 2026, suggesting consistent control over direct costs of sales.
- Operating Profit Margin
- This ratio experienced a notable contraction to a low of 39.48% in September 2022. A strong recovery followed, with the margin climbing consistently to reach 45.99% by March 2024. The upward trajectory continued moderately, ending at 46.27% in March 2026, reflecting an overall improvement in operational efficiency.
- Net Profit Margin
- The net profit margin mirrored the operating trend, dipping to 25.41% in September 2022 before expanding to a peak of 33.36% in March 2024. In the subsequent period, a slight contraction occurred, with the margin stabilizing between 31.62% and 32.25% through the final quarters of the analysis.
- Return on Assets (ROA)
- ROA declined to a period low of 12.19% in September 2022 before ascending to a high of 16.06% in March 2024. Following this peak, the return on assets moderated and stabilized, maintaining a range between 13.89% and 14.49% from late 2024 through March 2026.
Overall, the data demonstrates a resilient recovery from the lows of 2022. The alignment of the recovery peaks across operating margins, net margins, and ROA in March 2024 suggests a period of optimized profitability that has since transitioned into a stable, sustainable plateau.
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Return on Sales
Return on Investment
Gross Profit Margin
McDonald’s Corp., gross profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Gross margin | 3,643) | 4,030) | 4,105) | 3,962) | 3,337) | 3,678) | 3,875) | 3,718) | 3,439) | 3,654) | 3,864) | 3,731) | 3,314) | 3,409) | 3,446) | 3,302) | 3,050) | ||||||
| Revenues | 6,517) | 7,008) | 7,078) | 6,843) | 5,956) | 6,388) | 6,873) | 6,490) | 6,169) | 6,406) | 6,692) | 6,498) | 5,898) | 5,927) | 5,872) | 5,718) | 5,666) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | 57.35% | 57.41% | 57.42% | 56.99% | 56.82% | 56.75% | 56.62% | 56.97% | 57.01% | 57.12% | 57.24% | 57.45% | 57.53% | 56.97% | 56.13% | 55.29% | 54.54% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | 82.91% | 82.96% | 83.04% | 83.23% | 83.05% | 83.08% | 83.07% | 82.59% | 82.86% | 82.83% | 82.67% | 82.33% | 82.04% | 82.15% | 81.95% | 81.58% | 80.89% | ||||||
| Chipotle Mexican Grill Inc. | 24.64% | 25.38% | 25.72% | 25.98% | 26.37% | 26.67% | 26.87% | 27.10% | 26.66% | 26.20% | 25.91% | 25.67% | 25.05% | 23.88% | 23.00% | 22.49% | 22.20% | ||||||
| DoorDash, Inc. | 50.89% | 50.88% | 50.49% | 50.04% | 49.19% | 48.31% | 47.62% | 46.93% | 46.78% | 46.86% | 46.33% | 46.03% | 45.63% | 45.50% | 47.09% | 49.23% | 51.81% | ||||||
| Starbucks Corp. | 21.90% | 22.77% | 23.68% | 24.97% | 26.05% | 26.84% | 27.54% | 27.67% | 27.81% | 27.37% | 26.52% | 26.22% | 25.78% | 25.96% | 26.87% | 27.72% | 28.59% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Gross profit margin = 100
× (Gross marginQ1 2026
+ Gross marginQ4 2025
+ Gross marginQ3 2025
+ Gross marginQ2 2025)
÷ (RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025)
= 100 × (3,643 + 4,030 + 4,105 + 3,962)
÷ (6,517 + 7,008 + 7,078 + 6,843)
= 57.35%
2 Click competitor name to see calculations.
The financial analysis reveals a period of initial margin expansion followed by a prolonged phase of stabilization. While total revenues and absolute gross margins exhibited growth and cyclical volatility, the gross profit margin percentage remained remarkably consistent over the latter portion of the analyzed timeframe.
- Gross Profit Margin Trajectory
- A period of rapid growth is observed from March 31, 2022, to March 31, 2023, during which the gross profit margin increased from 54.54% to a peak of 57.53%. Subsequent to this peak, the ratio entered a stabilization phase, fluctuating within a tight corridor between 56.62% and 57.42% through March 31, 2026.
- Revenue and Volume Patterns
- Revenues demonstrate a consistent seasonal pattern, typically peaking in the third quarter of each fiscal year. The highest revenue peak occurred on September 30, 2025, at 7,078 million US$. Absolute gross margins mirrored this trend, reaching their highest value of 4,105 million US$ during the same period. The correlation between revenue peaks and absolute margin growth indicates a steady translation of increased sales into gross profit.
- Cost Efficiency and Margin Stability
- Despite the fluctuations in quarterly revenue, the gross profit margin percentage remained largely decoupled from volume swings after early 2023. The minimal variance observed—such as the slight dip to 56.62% in September 2024 followed by a recovery to 57.42% in September 2025—suggests a highly disciplined cost structure and an effective pricing strategy that offsets variable cost increases.
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Operating Profit Margin
McDonald’s Corp., operating profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating income | 2,953) | 3,156) | 3,357) | 3,232) | 2,648) | 2,868) | 3,188) | 2,920) | 2,736) | 2,802) | 3,208) | 3,104) | 2,532) | 2,583) | 2,764) | 1,712) | 2,313) | ||||||
| Revenues | 6,517) | 7,008) | 7,078) | 6,843) | 5,956) | 6,388) | 6,873) | 6,490) | 6,169) | 6,406) | 6,692) | 6,498) | 5,898) | 5,927) | 5,872) | 5,718) | 5,666) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 46.27% | 46.10% | 46.09% | 45.80% | 45.22% | 45.19% | 44.90% | 45.29% | 45.99% | 45.68% | 45.68% | 45.40% | 40.96% | 40.42% | 39.48% | 39.87% | 43.71% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | 20.49% | 20.78% | 22.65% | 22.50% | 22.17% | 23.00% | 15.01% | 15.21% | 15.86% | 15.31% | 23.42% | 21.53% | 20.69% | 21.45% | 20.46% | 17.49% | 13.17% | ||||||
| Booking Holdings Inc. | 32.63% | 32.79% | 32.74% | 32.85% | 32.49% | 31.83% | 27.92% | 28.39% | 28.07% | 27.31% | 31.85% | 31.29% | 29.59% | 29.85% | 28.74% | 27.56% | 23.83% | ||||||
| Chipotle Mexican Grill Inc. | 15.27% | 16.23% | 16.38% | 16.65% | 17.01% | 16.94% | 16.97% | 16.75% | 15.99% | 15.78% | 15.63% | 15.42% | 14.89% | 13.44% | 12.15% | 11.36% | 10.65% | ||||||
| DoorDash, Inc. | 4.88% | 5.27% | 5.48% | 4.56% | 1.58% | -0.35% | -2.40% | -4.78% | -5.15% | -6.71% | -10.55% | -13.79% | -15.67% | -17.07% | -14.97% | -12.41% | -9.99% | ||||||
| Starbucks Corp. | 7.18% | 7.90% | 10.81% | 12.51% | 13.96% | 14.95% | 15.92% | 16.08% | 16.64% | 16.32% | 15.31% | 14.92% | 14.26% | 14.32% | 15.33% | 16.27% | 16.92% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025
+ Operating incomeQ2 2025)
÷ (RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025)
= 100 × (2,953 + 3,156 + 3,357 + 3,232)
÷ (6,517 + 7,008 + 7,078 + 6,843)
= 46.27%
2 Click competitor name to see calculations.
The financial trajectory from March 2022 through March 2026 is characterized by a general expansion in both top-line revenue and operational efficiency. While quarterly volatility is present, there is a clear long-term upward trend in absolute operating income and a structural improvement in the operating profit margin.
- Revenue Performance
- Revenues exhibited a steady upward trajectory, increasing from 5,666 million USD in March 2022 to 6,517 million USD by March 2026. A peak in revenue was observed in September 2025, reaching 7,078 million USD, indicating a consistent capacity to scale sales over the analyzed period despite periodic quarterly fluctuations.
- Operating Income Trends
- Operating income demonstrated significant growth, rising from 2,313 million USD in early 2022 to 2,953 million USD by March 2026. A notable contraction occurred in June 2022, where income dipped to 1,712 million USD, followed by a sustained recovery. The highest operational earnings were recorded in September 2025 at 3,357 million USD.
- Operating Profit Margin Analysis
- The operating profit margin underwent a distinct structural transition. In 2022, margins were volatile, starting at 43.71% before dipping to a low of 39.48% in September 2022. Starting in June 2023, a permanent shift upward is observed, with the margin rising to 45.40% and maintaining a tight range between 44.90% and 46.27% through March 2026. This suggests a successful implementation of cost controls or a favorable shift in the business model that enhanced the conversion of revenue into operating profit.
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Net Profit Margin
McDonald’s Corp., net profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income | 1,983) | 2,164) | 2,278) | 2,253) | 1,868) | 2,017) | 2,255) | 2,022) | 1,929) | 2,039) | 2,317) | 2,310) | 1,802) | 1,903) | 1,982) | 1,188) | 1,104) | ||||||
| Revenues | 6,517) | 7,008) | 7,078) | 6,843) | 5,956) | 6,388) | 6,873) | 6,490) | 6,169) | 6,406) | 6,692) | 6,498) | 5,898) | 5,927) | 5,872) | 5,718) | 5,666) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 31.62% | 31.85% | 32.04% | 32.21% | 31.75% | 31.72% | 31.79% | 32.25% | 33.36% | 33.22% | 33.31% | 33.06% | 29.36% | 26.65% | 25.41% | 25.77% | 29.93% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | 19.90% | 20.51% | 22.03% | 22.67% | 22.60% | 23.85% | 16.96% | 46.11% | 48.23% | 48.32% | 56.87% | 25.31% | 23.30% | 22.54% | 20.29% | 16.91% | 12.12% | ||||||
| Booking Holdings Inc. | 22.23% | 20.08% | 19.37% | 19.23% | 22.58% | 24.78% | 21.85% | 22.46% | 21.81% | 20.07% | 25.70% | 23.04% | 22.14% | 17.89% | 15.24% | 10.54% | 4.16% | ||||||
| Chipotle Mexican Grill Inc. | 11.96% | 12.88% | 13.04% | 13.32% | 13.59% | 13.56% | 13.51% | 13.23% | 12.70% | 12.45% | 12.27% | 12.00% | 11.49% | 10.41% | 9.61% | 9.28% | 8.74% | ||||||
| DoorDash, Inc. | 6.29% | 6.82% | 6.83% | 6.57% | 3.02% | 1.15% | -1.69% | -4.24% | -4.61% | -6.46% | -12.81% | -16.47% | -18.98% | -20.74% | -14.51% | -12.17% | -9.97% | ||||||
| Starbucks Corp. | 3.63% | 4.99% | 7.18% | 8.61% | 9.73% | 10.40% | 11.16% | 11.38% | 11.70% | 11.46% | 10.80% | 10.46% | 10.09% | 10.18% | 13.03% | 14.07% | 14.47% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Net profit margin = 100
× (Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025)
÷ (RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025)
= 100 × (1,983 + 2,164 + 2,278 + 2,253)
÷ (6,517 + 7,008 + 7,078 + 6,843)
= 31.62%
2 Click competitor name to see calculations.
The financial trajectory between March 2022 and March 2026 is characterized by an initial period of volatility followed by a significant expansion and subsequent stabilization of profitability margins. An overall upward shift in the baseline net profit margin is evident when comparing the early 2022 figures to the subsequent reporting periods.
- Net Profit Margin Evolution
- A period of contraction is observed in the first half of 2022, with the net profit margin declining from 29.93% in March to a low of 25.41% by September 2022. This was followed by a sharp recovery and growth phase throughout 2023, where the margin peaked at 33.31% in September 2023. From late 2023 through March 2026, the margin entered a phase of relative stability, maintaining a range between 31.62% and 33.36%, indicating a sustained increase in operational efficiency compared to the 2022 baseline.
- Revenue and Net Income Correlation
- Revenues exhibit a general upward trend, growing from 5,666 million US$ in March 2022 to a peak of 7,078 million US$ in September 2025. Net income followed a similar growth pattern, rising from 1,104 million US$ in March 2022 to peak levels of 2,317 million US$ in September 2023. The most significant expansion in profit margin occurred during the mid-2023 period, where net income growth outpaced revenue growth, suggesting improved cost management or a shift in revenue mix.
- Long-term Profitability Stability
- Despite fluctuations in quarterly revenues, the net profit margin has demonstrated resilience from March 2024 onward. While revenues fluctuated between 5,956 million US$ and 7,078 million US$, the profit margin remained tightly clustered around the 32% mark. The most recent data point from March 2026 shows a net profit margin of 31.62%, representing a slight moderation from the 2023 peaks but remaining substantially higher than the margins recorded in early 2022.
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Return on Equity (ROE)
McDonald’s Corp., ROE calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income | 1,983) | 2,164) | 2,278) | 2,253) | 1,868) | 2,017) | 2,255) | 2,022) | 1,929) | 2,039) | 2,317) | 2,310) | 1,802) | 1,903) | 1,982) | 1,188) | 1,104) | ||||||
| Shareholders’ equity (deficit) | (1,286) | (1,791) | (2,163) | (2,760) | (3,454) | (3,797) | (5,177) | (4,824) | (4,833) | (4,707) | (4,855) | (4,999) | (5,776) | (6,003) | (6,566) | (6,370) | (5,991) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | 32.96% | 30.63% | 30.56% | 33.73% | 31.98% | 31.48% | 21.65% | 60.53% | 62.55% | 58.69% | 59.85% | 45.46% | 38.34% | 34.05% | 29.40% | 23.80% | 16.92% | ||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | — | — | — | — | 374.67% | 109.92% | 66.51% | 38.58% | 11.89% | ||||||
| Chipotle Mexican Grill Inc. | 60.31% | 54.26% | 47.69% | 43.70% | 44.73% | 41.97% | 41.08% | 37.99% | 38.57% | 40.13% | 40.55% | 40.27% | 41.60% | 37.97% | 34.75% | 35.10% | 32.06% | ||||||
| DoorDash, Inc. | 9.08% | 9.32% | 9.09% | 8.75% | 4.04% | 1.58% | -2.27% | -5.68% | -6.00% | -8.20% | -15.92% | -19.79% | -20.85% | -20.21% | -12.89% | -9.26% | -11.29% | ||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
ROE = 100
× (Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025)
÷ Shareholders’ equity (deficit)
= 100 × (1,983 + 2,164 + 2,278 + 2,253)
÷ -1,286 = —
2 Click competitor name to see calculations.
The financial performance between March 2022 and March 2026 is characterized by consistent profitability paired with a persistent, though diminishing, deficit in shareholders' equity.
- Net Income Trends
- Net income demonstrates a general upward trajectory from the initial period of 1,104 million USD in March 2022, reaching a peak of 2,317 million USD in September 2023. Throughout the observed timeframe, quarterly earnings remained robust, consistently exceeding 1.8 billion USD from March 2023 onward, indicating stable and strong operational profitability.
- Shareholders' Equity Analysis
- A continuous equity deficit is observed across all reporting periods. The deficit reached its maximum depth in September 2022 at -6,566 million USD. Following this point, a consistent recovery trend is evident, with the deficit narrowing significantly to -1,286 million USD by March 2026. This steady reduction in the deficit suggests a gradual strengthening of the balance sheet or a change in capital allocation strategies.
- Return on Equity (ROE) Implications
- The combination of positive net income and negative shareholders' equity results in a mathematically negative ROE. In this context, the negative ratio is not indicative of operational losses, but rather a highly leveraged capital structure where liabilities exceed assets. As the equity deficit narrows from its peak of -6,566 million USD toward -1,286 million USD while net income remains stable, the mathematical ROE moves further into negative territory due to the shrinking denominator, despite the overall improvement in the equity position.
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Return on Assets (ROA)
McDonald’s Corp., ROA calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income | 1,983) | 2,164) | 2,278) | 2,253) | 1,868) | 2,017) | 2,255) | 2,022) | 1,929) | 2,039) | 2,317) | 2,310) | 1,802) | 1,903) | 1,982) | 1,188) | 1,104) | ||||||
| Total assets | 60,037) | 59,515) | 60,608) | 59,555) | 56,329) | 55,182) | 56,172) | 53,801) | 53,513) | 56,147) | 52,089) | 50,442) | 52,014) | 50,436) | 48,502) | 49,248) | 50,878) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 14.45% | 14.39% | 13.89% | 14.09% | 14.49% | 14.90% | 14.68% | 15.44% | 16.06% | 15.08% | 16.00% | 15.86% | 13.22% | 12.25% | 12.19% | 12.35% | 13.98% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Airbnb Inc. | 9.38% | 11.31% | 11.41% | 9.73% | 10.13% | 12.63% | 8.29% | 18.40% | 20.13% | 23.21% | 25.47% | 10.85% | 10.13% | 11.80% | 10.13% | 6.55% | 4.70% | ||||||
| Booking Holdings Inc. | 22.20% | 18.47% | 17.54% | 15.69% | 20.00% | 21.23% | 18.00% | 17.62% | 17.31% | 17.62% | 20.68% | 16.78% | 15.96% | 12.06% | 11.06% | 6.30% | 2.32% | ||||||
| Chipotle Mexican Grill Inc. | 16.49% | 17.07% | 16.55% | 16.64% | 17.26% | 16.67% | 16.47% | 15.81% | 15.41% | 15.27% | 14.79% | 14.75% | 14.64% | 12.98% | 11.86% | 11.55% | 10.58% | ||||||
| DoorDash, Inc. | 4.70% | 4.76% | 4.80% | 4.61% | 2.50% | 0.96% | -1.40% | -3.44% | -3.67% | -5.15% | -10.43% | -13.19% | -14.09% | -13.94% | -9.21% | -6.91% | -7.70% | ||||||
| Starbucks Corp. | 4.25% | 5.80% | 7.82% | 9.89% | 11.03% | 12.00% | 13.52% | 14.16% | 14.71% | 14.01% | 13.17% | 12.43% | 11.75% | 11.73% | 14.80% | 15.19% | 15.24% | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
ROA = 100
× (Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025)
÷ Total assets
= 100 × (1,983 + 2,164 + 2,278 + 2,253)
÷ 60,037 = 14.45%
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibits a cyclical pattern over the observed period, characterized by an initial decline in 2022, a significant peak during 2023 and early 2024, and a subsequent period of stabilization through the first quarter of 2026.
- ROA Performance Trends
- The ROA reached a minimum of 12.19% in September 2022 before initiating a strong upward trajectory. The ratio peaked at 16.06% in March 2024, reflecting a period of enhanced asset productivity. Following this peak, the ROA entered a gradual moderation phase, settling into a range between 13.89% and 14.45% from June 2025 through March 2026.
- Asset Base Expansion
- Total assets demonstrated a consistent long-term growth trend, rising from $50,878 million in March 2022 to $60,037 million by March 2026. This expansion of the asset base has exerted downward pressure on the ROA in the latter half of the period; as the denominator grew, the efficiency ratio stabilized despite net income remaining relatively robust.
- Net Income Correlation
- The fluctuations in ROA are closely correlated with variations in net income. The peak ROA values observed in 2023 coincided with net income reaching levels above $2.3 billion. While net income remained resilient, oscillating between $1.8 billion and $2.3 billion in the final two years, the simultaneous increase in total assets resulted in a stabilized ROA, suggesting that profit growth scaled proportionally with asset acquisition.
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