Analysis of Reportable Segments
McDonald’s Corp. operates in 3 segments: U.S.; International Operated Markets; and International Developmental Licensed Markets & Corporate.
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- Income Statement
- Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Analysis of Revenues
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Segment Profit Margin
McDonald’s Corp., profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| U.S. | |||||
| International Operated Markets | |||||
| International Developmental Licensed Markets & Corporate |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment profit margins exhibited varied performance across the reporting periods. The U.S. segment demonstrated relative stability, while the International Operated Markets and International Developmental Licensed Markets & Corporate segments experienced more pronounced fluctuations.
- U.S. Segment
- The U.S. segment maintained a consistently high profit margin, fluctuating narrowly between 53.57% and 53.93% throughout the five-year period. A slight increase is observed from 2021 to 2023, followed by a minor decline in the most recent reporting period. Overall, the segment’s profitability remained remarkably stable.
- International Operated Markets
- The International Operated Markets segment experienced significant volatility. A substantial decrease in profit margin occurred between 2021 and 2022, falling from 41.99% to 34.75%. A recovery was then noted in 2023 and 2024, reaching 47.10% and 47.09% respectively. However, a slight downward trend is apparent in the latest period, with the margin decreasing to 46.81%.
- International Developmental Licensed Markets & Corporate
- This segment displayed the most dramatic changes in profit margin. A considerable decline occurred from 2021 to 2023, decreasing from 22.01% to 4.75%. The margin continued to fall in 2024, reaching a low of 1.24%. A notable increase is then observed in 2025, with the margin rising to 8.36%, although it remains significantly below the level reported in 2021. This segment’s performance suggests considerable sensitivity to external factors or internal strategic shifts.
In summary, while the U.S. segment provided a consistent contribution to overall profitability, the international segments demonstrated greater variability. The International Developmental Licensed Markets & Corporate segment, in particular, warrants further investigation due to its substantial margin decline and recent partial recovery.
Segment Profit Margin: U.S.
McDonald’s Corp.; U.S.; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating income ÷ Revenues
= 100 × ÷ =
The U.S. segment demonstrated consistent financial performance between 2021 and 2025. Both operating income and revenues exhibited an upward trajectory over the five-year period, contributing to a stable segment profit margin.
- Operating Income
- Operating income for the U.S. segment increased from $4,755 million in 2021 to $5,808 million in 2025. The growth was not strictly linear, with a slight deceleration in the increase from 2023 to 2024 ($69 million) compared to the increase from 2022 to 2023 ($558 million). However, growth resumed in 2025 with an increase of $75 million.
- Revenues
- Revenues followed a similar pattern, rising from $8,865 million in 2021 to $10,825 million in 2025. The rate of revenue growth also showed some fluctuation, mirroring the operating income trend. The largest annual increase in revenue occurred between 2022 and 2023 ($979 million), while the smallest occurred between 2024 and 2025 ($194 million).
- Segment Profit Margin
- The segment profit margin remained remarkably stable, fluctuating within a narrow range of 53.57% to 53.93% throughout the period. It began at 53.63% in 2021, experienced a slight decrease in 2022 to 53.57%, and then increased to 53.88% in 2023 and 53.93% in 2024 before settling at 53.65% in 2025. This consistency suggests effective cost management and pricing strategies within the U.S. segment, maintaining profitability despite revenue fluctuations.
Overall, the U.S. segment’s performance indicates a healthy and stable business. The consistent profit margin, coupled with increasing revenues and operating income, suggests a well-managed and resilient operation.
Segment Profit Margin: International Operated Markets
McDonald’s Corp.; International Operated Markets; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating income ÷ Revenues
= 100 × ÷ =
The International Operated Markets segment demonstrated fluctuating performance between 2021 and 2025. Operating income and revenues both experienced initial declines before exhibiting growth over the analyzed period. However, the segment profit margin showed a more stable, albeit slightly decreasing, trend.
- Operating Income
- Operating income decreased from US$5,131 million in 2021 to US$3,926 million in 2022, representing a notable decline. A subsequent recovery was observed, with operating income increasing to US$5,832 million in 2023 and further to US$5,946 million in 2024. This positive trend continued into 2025, reaching US$6,382 million, indicating a sustained period of growth following the 2022 dip.
- Revenues
- Revenues mirrored the trend in operating income, decreasing from US$12,220 million in 2021 to US$11,297 million in 2022. Similar to operating income, revenues began to increase in 2023, reaching US$12,382 million, and continued to grow to US$12,628 million in 2024. The most substantial revenue increase occurred between 2024 and 2025, with revenues reaching US$13,633 million.
- Segment Profit Margin
- The segment profit margin began at 41.99% in 2021, decreased to 34.75% in 2022, coinciding with the decline in operating income and revenues. The margin then rebounded significantly to 47.10% in 2023, and remained relatively stable at 47.09% in 2024. A slight decrease was observed in 2025, with the margin settling at 46.81%. Despite this final decrease, the segment maintained a consistently high profit margin throughout the latter part of the analyzed period.
The recovery in both operating income and revenues, coupled with a consistently high segment profit margin from 2023 onwards, suggests improved operational efficiency and/or increased sales volume within the International Operated Markets segment. The initial decline in 2022 warrants further investigation to determine the underlying causes, but the subsequent performance indicates a successful turnaround.
Segment Profit Margin: International Developmental Licensed Markets & Corporate
McDonald’s Corp.; International Developmental Licensed Markets & Corporate; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Operating income ÷ Revenues
= 100 × ÷ =
The segment experienced significant fluctuations in operating income and, consequently, segment profit margin over the five-year period. Revenues demonstrated an overall increasing trend, though with a recent decline.
- Operating Income
- Operating income decreased substantially from 2021 to 2023, falling from US$471 million to US$121 million. A further decline was observed in 2024, reaching a low of US$33 million. A notable recovery occurred in 2025, with operating income increasing to US$203 million, but remained below the 2021 level.
- Revenues
- Revenues generally increased from 2021 to 2024, rising from US$2,138 million to US$2,661 million. However, a decrease was recorded in 2025, with revenues falling to US$2,427 million. Despite this recent decline, revenue in 2025 remained above the 2021 level.
- Segment Profit Margin
- The segment profit margin mirrored the trend in operating income. It decreased significantly from 22.01% in 2021 to 13.43% in 2022, and continued to decline to 4.75% in 2023. The margin reached a low of 1.24% in 2024 before recovering to 8.36% in 2025. The 2025 margin, while representing improvement, remains considerably lower than the 2021 figure.
The divergence between revenue and operating income suggests increasing cost pressures or decreased efficiency within the segment, particularly evident between 2021 and 2024. The recovery in 2025 indicates potential mitigation of these pressures, but further investigation is warranted to understand the sustainability of this improvement.
Segment Return on Assets (Segment ROA)
McDonald’s Corp., ROA by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| U.S. | |||||
| International Operated Markets | |||||
| International Developmental Licensed Markets & Corporate |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment return on assets exhibited varied performance across the reporting periods. The U.S. segment consistently demonstrated the highest returns among the three segments analyzed, while International Developmental Licensed Markets & Corporate consistently showed the lowest.
- U.S. Segment
- The U.S. segment experienced a generally positive trend in return on assets. From 22.34% in 2021, the segment’s return increased to 25.33% in 2023. While there was a slight increase to 25.43% in 2024, the return decreased marginally to 25.24% in 2025. Overall, the U.S. segment maintained a strong and relatively stable return on assets throughout the analyzed period.
- International Operated Markets Segment
- The International Operated Markets segment showed more volatility. A decrease in return on assets was observed from 21.21% in 2021 to 17.86% in 2022. However, a significant recovery occurred, with returns rising to 24.35% in 2023 and 25.31% in 2024. A slight decline to 23.22% was noted in 2025, but the segment still ended the period with a substantially improved return compared to 2022.
- International Developmental Licensed Markets & Corporate Segment
- The International Developmental Licensed Markets & Corporate segment demonstrated the most significant fluctuations. Returns decreased from 5.61% in 2021 to 4.63% in 2022, and then experienced a substantial decline to 1.24% in 2023. The segment reached a low of 0.36% in 2024 before recovering to 2.25% in 2025. This segment’s performance suggests potential challenges in maintaining consistent profitability, although a recent upward trend is apparent.
The disparity in returns between the segments highlights differing operational efficiencies and market conditions. The U.S. segment’s consistent performance suggests a well-established and profitable market, while the International Developmental Licensed Markets & Corporate segment’s volatility may indicate greater sensitivity to external factors or operational complexities.
Segment ROA: U.S.
McDonald’s Corp.; U.S.; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Operating income ÷ Assets
= 100 × ÷ =
The U.S. segment demonstrates a consistent pattern of growth in both operating income and assets between 2021 and 2025. This positive performance is reflected in a strengthening return on assets (ROA) over the period, although the rate of improvement appears to be moderating in the later years.
- Operating Income
- Operating income for the U.S. segment increased from US$4,755 million in 2021 to US$5,808 million in 2025. The growth was relatively steady, with incremental increases each year. The largest absolute increase occurred between 2021 and 2022 (US$381 million), while the smallest occurred between 2024 and 2025 (US$75 million).
- Assets
- Total assets within the U.S. segment also exhibited a consistent upward trend, rising from US$21,280 million in 2021 to US$23,008 million in 2025. Similar to operating income, the asset growth was incremental annually. The increase from 2022 to 2023 (US$684 million) was the largest observed during the five-year period.
- Segment ROA
- The segment ROA increased from 22.34% in 2021 to 25.33% in 2023, indicating improved efficiency in generating profits from its asset base. The rate of increase slowed in 2024, with ROA reaching 25.43%, and experienced a slight decrease in 2025 to 25.24%. While still representing a strong return, the leveling off suggests that further substantial improvements in asset utilization may be becoming more challenging.
Overall, the U.S. segment’s financial performance appears healthy and stable. The continued growth in operating income and assets, coupled with a high and generally increasing ROA, suggests effective management and a strong market position. The recent moderation in ROA growth warrants continued monitoring to understand potential contributing factors and ensure sustained profitability.
Segment ROA: International Operated Markets
McDonald’s Corp.; International Operated Markets; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Operating income ÷ Assets
= 100 × ÷ =
The International Operated Markets segment demonstrated fluctuating performance between 2021 and 2025. Operating income and assets both experienced initial declines before exhibiting subsequent growth. Segment Return on Assets (ROA) mirrored this pattern, showing an initial decrease followed by improvement, and then a slight moderation.
- Operating Income
- Operating income decreased from US$5,131 million in 2021 to US$3,926 million in 2022, representing a decline of approximately 23.1%. A recovery was then observed, with operating income increasing to US$5,832 million in 2023 and further to US$5,946 million in 2024. This upward trend continued into 2025, reaching US$6,382 million. The overall trend indicates a return to growth following the initial downturn.
- Assets
- Assets followed a similar trajectory to operating income. A decrease was noted from US$24,186 million in 2021 to US$21,979 million in 2022, a reduction of roughly 9.1%. Assets then increased to US$23,947 million in 2023, and slightly decreased to US$23,491 million in 2024. By 2025, assets had risen to US$27,487 million, indicating a substantial increase in the segment’s asset base.
- Segment ROA
- Segment ROA decreased from 21.21% in 2021 to 17.86% in 2022, coinciding with the decline in operating income and assets. A significant improvement was then observed, with ROA increasing to 24.35% in 2023 and peaking at 25.31% in 2024. In 2025, ROA moderated slightly to 23.22%, remaining at a relatively strong level despite the decrease. The ROA trend suggests improved efficiency in utilizing assets to generate profits, followed by a stabilization at a high level.
The segment’s performance suggests a period of disruption in 2022, followed by a strong recovery and growth phase through 2025. The increasing asset base in 2025, coupled with a still-robust ROA, indicates potential for continued profitability, although the slight moderation in ROA warrants monitoring.
Segment ROA: International Developmental Licensed Markets & Corporate
McDonald’s Corp.; International Developmental Licensed Markets & Corporate; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Operating income ÷ Assets
= 100 × ÷ =
The segment performance of International Developmental Licensed Markets & Corporate demonstrates significant fluctuations in profitability and asset utilization over the five-year period. Operating income and segment Return on Assets (ROA) experienced a marked decline from 2021 to 2023, followed by a partial recovery in 2024 and 2025.
- Operating Income
- Operating income decreased substantially from US$471 million in 2021 to US$309 million in 2022, representing a decline of approximately 34.4%. This downward trend continued in 2023, with operating income falling to US$121 million. A significant drop occurred in 2024, reaching a low of US$33 million, before rebounding to US$203 million in 2025. The recovery in 2025 suggests a potential stabilization or positive shift in the segment’s operational performance.
- Assets
- Assets decreased from US$8,388 million in 2021 to US$6,663 million in 2022, a reduction of approximately 20.5%. Assets then increased considerably to US$9,723 million in 2023, before decreasing slightly to US$9,143 million in 2024 and further to US$9,020 million in 2025. The asset fluctuations suggest potential strategic shifts in capital allocation within this segment.
- Segment ROA
- Segment ROA mirrored the trend in operating income. It decreased from 5.61% in 2021 to 4.63% in 2022, and then experienced a more pronounced decline to 1.24% in 2023. The lowest point was reached in 2024, with an ROA of 0.36%. A recovery was observed in 2025, with ROA increasing to 2.25%, although it remained significantly below the 2021 level. The decline in ROA indicates diminishing efficiency in generating profits from the segment’s asset base, followed by a modest improvement in the most recent year.
The correlation between operating income and segment ROA is strong, indicating that changes in profitability directly impact the segment’s ability to generate returns from its assets. The asset fluctuations, while less dramatic than the income changes, contribute to the overall ROA trend. Further investigation into the drivers behind these fluctuations in both income and asset levels would be beneficial.
Segment Asset Turnover
McDonald’s Corp., asset turnover by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| U.S. | |||||
| International Operated Markets | |||||
| International Developmental Licensed Markets & Corporate |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment asset turnover ratios reveal varying levels of efficiency in utilizing assets to generate revenue across the reported segments. The U.S. segment demonstrates a consistent, albeit modest, improvement, while the International Operated Markets exhibit a more dynamic pattern. The International Developmental Licensed Markets & Corporate segment shows the most volatility and generally lower turnover compared to the other two segments.
- U.S. Segment
- The U.S. segment’s asset turnover ratio increased from 0.42 in 2021 to 0.47 in 2023, indicating improved asset utilization. This improvement plateaued between 2023 and 2025, remaining stable at 0.47. This suggests that the segment has reached a level of efficiency in asset management, or that further improvements are becoming increasingly difficult to achieve.
- International Operated Markets
- The International Operated Markets segment maintained a ratio of 0.51 in both 2021 and 2022. A slight increase was observed in 2023, reaching 0.52, followed by a further increase to 0.54 in 2024. However, the ratio decreased to 0.50 in 2025. This segment demonstrates a generally higher asset turnover than the U.S. segment, but the recent decline warrants further investigation to determine the underlying causes.
- International Developmental Licensed Markets & Corporate
- The International Developmental Licensed Markets & Corporate segment experienced significant fluctuation. The ratio rose from 0.25 in 2021 to 0.34 in 2022, before decreasing to 0.26 in 2023. A subsequent increase to 0.29 occurred in 2024, followed by a slight decrease to 0.27 in 2025. This segment consistently exhibits the lowest asset turnover ratio among the three, potentially indicating less efficient asset utilization or a different business model requiring higher asset investment.
Overall, the trends suggest varying degrees of operational efficiency across the segments. The U.S. segment shows steady improvement followed by stabilization, the International Operated Markets demonstrate growth with a recent pullback, and the International Developmental Licensed Markets & Corporate segment experiences considerable volatility and consistently lower performance. Continued monitoring of these ratios is recommended to identify potential areas for improvement and understand the drivers behind the observed trends.
Segment Asset Turnover: U.S.
McDonald’s Corp.; U.S.; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Revenues ÷ Assets
= ÷ =
The U.S. segment experienced consistent revenue growth between 2021 and 2025. Simultaneously, assets within the segment also increased over the same period. However, the rate of asset growth was moderated, resulting in a notable trend in segment asset turnover.
- Revenues
- Revenues for the U.S. segment increased from US$8,865 million in 2021 to US$10,825 million in 2025. This represents a cumulative growth of approximately 22.1% over the five-year period. The growth appears relatively steady year-over-year, with incremental increases each year.
- Assets
- Total assets within the U.S. segment rose from US$21,280 million in 2021 to US$23,008 million in 2025, an increase of approximately 8.1%. Asset growth was most pronounced between 2021 and 2022, and then slowed considerably in subsequent years.
- Segment Asset Turnover
- The segment asset turnover ratio exhibited an increasing trend from 0.42 in 2021 to 0.47 in 2023. This indicates improving efficiency in asset utilization to generate revenue. However, the ratio stabilized at 0.47 for both 2024 and 2025, suggesting that the rate of improvement in asset utilization has plateaued. Despite continued revenue growth, the consistent asset base resulted in no further gains in turnover.
In summary, while the U.S. segment demonstrated strong revenue performance, the asset turnover ratio suggests that the efficiency of generating revenue from assets peaked in 2023 and has remained constant since. Further investigation may be warranted to understand the factors contributing to the stabilization of the asset turnover ratio, despite ongoing revenue increases.
Segment Asset Turnover: International Operated Markets
McDonald’s Corp.; International Operated Markets; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Revenues ÷ Assets
= ÷ =
The International Operated Markets segment demonstrated fluctuating performance in asset turnover between 2021 and 2025. Revenues and assets within this segment experienced variability over the five-year period, influencing the observed turnover rates.
- Revenues
- Revenues for the International Operated Markets segment decreased from US$12,220 million in 2021 to US$11,297 million in 2022. A subsequent recovery was noted, with revenues increasing to US$12,382 million in 2023 and further to US$12,628 million in 2024. The segment continued to grow, reaching US$13,633 million in 2025, representing the highest revenue figure within the analyzed timeframe.
- Assets
- The value of assets held within the International Operated Markets segment followed a different trajectory. Assets decreased from US$24,186 million in 2021 to US$21,979 million in 2022. An increase was observed in 2023, with assets reaching US$23,947 million, followed by a slight decrease to US$23,491 million in 2024. The segment concluded the period with US$27,487 million in assets in 2025, marking the highest asset value recorded.
- Segment Asset Turnover
- The segment asset turnover ratio remained relatively stable between 2021 and 2023, holding at 0.51 for 2021 and 2022, and increasing slightly to 0.52 in 2023. A peak was reached in 2024, with a ratio of 0.54, indicating improved efficiency in asset utilization. However, the ratio decreased to 0.50 in 2025, despite revenue growth, suggesting a potential slowdown in the rate at which assets are generating sales. The overall trend suggests a generally efficient use of assets, though the 2025 figure warrants further investigation to understand the drivers behind the slight decline.
The interplay between revenue and asset fluctuations resulted in a dynamic asset turnover ratio. While revenue growth in 2025 was substantial, the larger increase in assets contributed to a lower turnover ratio compared to the previous year.
Segment Asset Turnover: International Developmental Licensed Markets & Corporate
McDonald’s Corp.; International Developmental Licensed Markets & Corporate; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Revenues ÷ Assets
= ÷ =
Segment performance for International Developmental Licensed Markets & Corporate reveals fluctuating revenue and asset levels between 2021 and 2025. The segment asset turnover ratio exhibits corresponding variability, indicating changes in the efficiency with which assets are used to generate revenue.
- Revenues
- Revenues increased from US$2,138 million in 2021 to US$2,297 million in 2022, representing a growth of approximately 7.4%. Further growth was observed in 2023, reaching US$2,543 million. Revenue continued to rise in 2024 to US$2,661 million, before decreasing to US$2,427 million in 2025. This suggests a period of expansion followed by a recent contraction in revenue generation.
- Assets
- Assets decreased significantly from US$8,388 million in 2021 to US$6,663 million in 2022, a decline of approximately 20.5%. A substantial increase occurred in 2023, with assets reaching US$9,723 million. Asset levels then decreased slightly to US$9,143 million in 2024 and continued to decline to US$9,020 million in 2025. These fluctuations indicate potential shifts in investment strategies or asset management within the segment.
- Segment Asset Turnover
- The segment asset turnover ratio was 0.25 in 2021. It increased to 0.34 in 2022, coinciding with the decrease in assets and increase in revenue. The ratio decreased to 0.26 in 2023, reflecting the larger increase in assets relative to revenue. A slight increase to 0.29 was observed in 2024, followed by a decrease to 0.27 in 2025. The ratio’s volatility suggests inconsistent efficiency in asset utilization. While 2022 showed the highest turnover, the subsequent years demonstrate a return towards levels closer to those observed in 2021.
The interplay between revenue and asset changes significantly impacts the segment asset turnover ratio. The decrease in revenue in 2025, coupled with relatively stable asset levels, contributed to the slight decline in the ratio. Further investigation into the drivers behind these revenue and asset fluctuations is recommended to understand the underlying causes of the observed trends.
Segment Capital Expenditures to Depreciation
McDonald’s Corp., capital expenditures to depreciation by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| U.S. | |||||
| International Operated Markets | |||||
| International Developmental Licensed Markets & Corporate |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of segment capital expenditures to depreciation reveals distinct trends across the company’s reportable segments between 2021 and 2025. The U.S. segment demonstrates a generally increasing ratio, while the International Operated Markets segment exhibits a more pronounced upward trajectory. Conversely, the International Developmental Licensed Markets & Corporate segment maintains a consistently low ratio with a slight downward trend.
- U.S. Segment
- The ratio for the U.S. segment began at 1.12 in 2021, decreased to 0.94 in 2022, and then generally increased through 2025, reaching 1.28. This suggests that capital expenditures have, on balance, exceeded depreciation expense in this segment, and the gap widened over the period. The initial decrease in 2022 may indicate a temporary slowdown in capital spending or an increase in depreciation related to prior investments.
- International Operated Markets Segment
- This segment shows a consistent and substantial increase in the ratio, rising from 1.45 in 2021 to 2.60 in 2025. This indicates a growing investment in capital assets relative to depreciation within these markets. The accelerating trend suggests an increasing focus on expansion or modernization within the International Operated Markets. The ratio consistently remains higher than the U.S. segment, potentially reflecting differing investment cycles or asset intensity.
- International Developmental Licensed Markets & Corporate Segment
- The ratio for this segment is significantly lower than the other two, starting at 0.16 in 2021 and decreasing to 0.10 in 2025. This implies that depreciation expense consistently exceeds capital expenditures in this segment. The low and declining ratio could be attributable to the nature of this segment, which primarily involves franchise support and corporate activities with lower capital asset requirements. Fluctuations within the segment were minimal.
Overall, the observed patterns suggest a strategic allocation of capital, with increasing investment in the International Operated Markets and a more moderate, but growing, investment in the U.S. segment. The International Developmental Licensed Markets & Corporate segment appears to operate with a relatively stable asset base and lower capital expenditure needs.
Segment Capital Expenditures to Depreciation: U.S.
McDonald’s Corp.; U.S.; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
The segment capital expenditures to depreciation ratio for the U.S. demonstrates a fluctuating pattern over the five-year period. Initial values indicate capital expenditures exceeded depreciation, but this relationship shifted before stabilizing and then increasing again.
- Capital Expenditures
- Capital expenditures in the U.S. segment exhibited an initial decrease from $941 million in 2021 to $860 million in 2022. Subsequently, these expenditures increased to $963 million in 2023, continued to $1,055 million in 2024, and reached $1,277 million in 2025. This represents a substantial overall increase over the period.
- Depreciation and Amortization
- Depreciation and amortization experienced a rise from $841 million in 2021 to $912 million in 2022. Further increases were observed in 2023, reaching $969 million, and in 2024, reaching $980 million. The rate of increase slowed in 2025, with depreciation and amortization reaching $995 million.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio began at 1.12 in 2021, indicating that capital expenditures were 12% higher than depreciation. A decrease was then observed in 2022, with the ratio falling to 0.94, signifying that depreciation exceeded capital expenditures. The ratio recovered to 0.99 in 2023, and then increased to 1.08 in 2024. The most significant change occurred in 2025, with the ratio reaching 1.28, indicating a substantial increase in capital expenditures relative to depreciation. This suggests a renewed focus on investment in the U.S. segment, potentially for expansion or modernization, outpacing the reduction in the value of existing assets through depreciation.
The trend suggests a period of capital expenditure constraint followed by a return to, and then acceleration of, investment. The increasing ratio in the later years implies a growing investment in the U.S. segment’s asset base relative to the depreciation of existing assets.
Segment Capital Expenditures to Depreciation: International Operated Markets
McDonald’s Corp.; International Operated Markets; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
The International Operated Markets segment demonstrates a consistent upward trend in capital expenditures from 2021 through 2025. Simultaneously, depreciation and amortization also increased over the same period, though at a slower rate. Consequently, the segment capital expenditures to depreciation ratio exhibits a marked increase throughout the analyzed timeframe.
- Capital Expenditures
- Capital expenditures within the International Operated Markets segment increased from US$1,051 million in 2021 to US$2,048 million in 2025. This represents a cumulative increase of 94.4% over the five-year period. The largest single-year increase occurred between 2023 and 2024, with an addition of US$320 million.
- Depreciation and Amortization
- Depreciation and amortization experienced a more moderate increase, rising from US$726 million in 2021 to US$789 million in 2025. This equates to a total increase of 8.7% over the five years. While consistently positive, the year-over-year growth in depreciation and amortization decelerated after 2023.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation increased steadily from 1.45 in 2021 to 2.60 in 2025. This indicates that investments in capital assets are growing at a significantly faster pace than the depreciation of existing assets. The ratio’s increase suggests a growing asset base and potentially reflects strategic investments in expansion or modernization within the International Operated Markets segment. The acceleration in the ratio from 2023 onwards is particularly noteworthy.
The observed trends suggest a commitment to substantial investment in the International Operated Markets segment, outpacing the natural decline in value of existing assets as reflected by depreciation. This could indicate a focus on long-term growth and market share expansion within these international operations.
Segment Capital Expenditures to Depreciation: International Developmental Licensed Markets & Corporate
McDonald’s Corp.; International Developmental Licensed Markets & Corporate; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
The segment experienced fluctuating capital expenditures alongside consistently increasing depreciation and amortization over the five-year period. This dynamic resulted in a varying ratio of capital expenditures to depreciation.
- Capital Expenditures
- Capital expenditures began at US$49 million in 2021, decreased significantly to US$24 million in 2022, and then rose to US$54 million in 2023. A further increase to US$58 million was observed in 2024, followed by a decrease to US$40 million in 2025. This suggests potential cyclical investment patterns or project-based spending within the segment.
- Depreciation and Amortization
- Depreciation and amortization exhibited a consistent upward trend throughout the period, increasing from US$301 million in 2021 to US$415 million in 2025. This indicates a growing asset base subject to depreciation, potentially reflecting prior capital investments maturing and entering the depreciation cycle.
- Segment Capital Expenditures to Depreciation
- The ratio of capital expenditures to depreciation began at 0.16 in 2021, decreased substantially to 0.08 in 2022, coinciding with the drop in capital expenditures. The ratio recovered to 0.16 in 2023, remained relatively stable at 0.15 in 2024, and then declined to 0.10 in 2025. The fluctuations in this ratio suggest that capital investment is not consistently keeping pace with the depreciation of existing assets, particularly in 2022 and 2025. A declining ratio could indicate a slower rate of asset renewal or expansion relative to the existing asset base.
The combination of increasing depreciation and fluctuating capital expenditures suggests a need for continued monitoring of asset replacement and investment strategies within this segment to ensure long-term operational capacity and efficiency.
Revenues
McDonald’s Corp., revenues by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| U.S. | |||||
| International Operated Markets | |||||
| International Developmental Licensed Markets & Corporate | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Overall revenues exhibited a general upward trajectory throughout the observed period, though with variations across reportable segments. Total revenues increased from US$23,223 million in 2021 to US$26,885 million in 2025. However, the rate of growth was not consistent year-over-year.
- U.S. Segment
- The U.S. segment demonstrated consistent revenue growth over the five-year period, increasing from US$8,865 million in 2021 to US$10,825 million in 2025. While growth was present each year, the rate of increase slowed between 2023 and 2024, and again between 2024 and 2025. This suggests a potential maturing of revenue growth within this segment.
- International Operated Markets Segment
- Revenue from International Operated Markets experienced a decrease in 2022, falling to US$11,297 million from US$12,220 million in 2021. However, this segment rebounded strongly in subsequent years, reaching US$13,633 million in 2025. This represents the largest revenue contribution of all segments by 2025. The growth rate accelerated between 2023 and 2025.
- International Developmental Licensed Markets & Corporate Segment
- This segment showed moderate growth from 2021 to 2023, increasing from US$2,138 million to US$2,543 million. Revenue peaked in 2023, but decreased to US$2,427 million in 2025. This segment represents the smallest portion of overall revenue and experienced the least consistent growth.
The combined effect of these segment performances resulted in a slight decrease in total revenue in 2022, followed by robust growth in 2023, 2024, and 2025. The International Operated Markets segment was a key driver of the overall revenue increase, particularly in the later years of the period.
Operating income
McDonald’s Corp., operating income by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| U.S. | |||||
| International Operated Markets | |||||
| International Developmental Licensed Markets & Corporate | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Operating income exhibited varied performance across reportable segments between 2021 and 2025. Overall, total operating income demonstrated a recovery and growth trend following a dip in 2022, ultimately reaching a peak in 2025.
- U.S. Segment
- The U.S. segment consistently contributed the largest portion of operating income throughout the period. A steady upward trend is observed, increasing from US$4,755 million in 2021 to US$5,808 million in 2025. While growth was present each year, the rate of increase slowed between 2022 and 2023, and again between 2023 and 2024, before resuming a similar pace in 2025.
- International Operated Markets Segment
- This segment experienced significant volatility. Operating income decreased substantially from US$5,131 million in 2021 to US$3,926 million in 2022. However, a strong recovery followed, with income rising to US$5,832 million in 2023 and continuing to US$6,382 million in 2025. This segment’s performance demonstrates a notable rebound after the initial decline.
- International Developmental Licensed Markets & Corporate Segment
- This segment generated the lowest operating income of the three. A marked decline occurred between 2021 and 2023, falling from US$471 million to US$121 million. A significant drop was observed in 2023. A partial recovery began in 2024, with income reaching US$203 million in 2025, though it remained below the 2021 level.
Total operating income decreased in 2022 to US$9,371 million, down from US$10,356 million in 2021. Subsequent years showed consistent growth, reaching US$12,393 million in 2025. The recovery in the International Operated Markets segment, coupled with continued growth in the U.S. segment, drove the overall positive trend in total operating income.
- Segment Contribution to Total
- The U.S. segment consistently accounted for approximately half of the total operating income. The International Operated Markets segment’s contribution fluctuated, but generally represented a significant portion, increasing to over 50% of the total in 2025. The International Developmental Licensed Markets & Corporate segment’s contribution remained relatively small, typically less than 2% of the total.
Assets
McDonald’s Corp., assets by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| U.S. | |||||
| International Operated Markets | |||||
| International Developmental Licensed Markets & Corporate | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Total assets experienced fluctuations over the five-year period. A decrease was observed from 2021 to 2022, followed by increases in subsequent years, culminating in the highest reported value in 2025. Analysis of the individual segments reveals differing trends contributing to this overall pattern.
- U.S. Segment Assets
- The U.S. segment demonstrated a consistent upward trend in asset values throughout the period. Beginning at US$21,280 million in 2021, assets increased steadily to US$23,008 million by 2025. This suggests ongoing investment and growth within the U.S. market.
- International Operated Markets Segment Assets
- This segment exhibited more volatility. A significant decrease in asset value occurred between 2021 and 2022, declining from US$24,186 million to US$21,979 million. Assets then recovered, reaching US$23,947 million in 2023, before a slight decrease in 2024. A substantial increase was then noted in 2025, with assets reaching US$27,487 million. This pattern may indicate strategic shifts, divestitures, or currency fluctuations impacting the value of assets in these markets.
- International Developmental Licensed Markets & Corporate Segment Assets
- Assets in this segment decreased from US$8,388 million in 2021 to US$6,663 million in 2022. A recovery was then observed, with assets rising to US$9,723 million in 2023. However, this was followed by a decrease to US$9,143 million in 2024, and a further slight decrease to US$9,020 million in 2025. The fluctuations suggest potential changes in licensing agreements, corporate investments, or asset valuations within these markets.
The overall increase in total assets from 2022 to 2025 was primarily driven by growth in the U.S. and International Operated Markets segments, offsetting the relatively stable, but lower, asset levels in the International Developmental Licensed Markets & Corporate segment. The differing trends across segments highlight the importance of considering regional performance when evaluating the company’s overall asset position.
Capital expenditures
McDonald’s Corp., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| U.S. | |||||
| International Operated Markets | |||||
| International Developmental Licensed Markets & Corporate | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Capital expenditures exhibited varied trends across the reportable segments between 2021 and 2025. Overall, total capital expenditures demonstrated a general upward trajectory, though with some fluctuation. A detailed examination of each segment reveals distinct patterns.
- U.S. Segment
- Capital expenditures in the U.S. segment initially decreased from US$941 million in 2021 to US$860 million in 2022. However, subsequent years showed consistent growth, reaching US$1,277 million by 2025. This indicates a renewed investment focus within the U.S. market in the latter part of the analyzed period.
- International Operated Markets Segment
- The International Operated Markets segment experienced a slight decrease in capital expenditures from US$1,051 million in 2021 to US$1,015 million in 2022. Following this, the segment saw substantial and consistent increases, culminating in US$2,048 million in 2025. This represents the most significant growth among the segments, suggesting a strong commitment to expansion and modernization in these markets.
- International Developmental Licensed Markets & Corporate Segment
- Capital expenditures in the International Developmental Licensed Markets & Corporate segment were relatively low and volatile. The segment decreased from US$49 million in 2021 to US$24 million in 2022, then increased to US$54 million in 2023 and US$58 million in 2024 before decreasing to US$40 million in 2025. This suggests a more opportunistic or project-based approach to capital allocation within this segment.
- Total Capital Expenditures
- Total capital expenditures decreased from US$2,040 million in 2021 to US$1,899 million in 2022. From 2022 onward, a clear upward trend is observed, with total expenditures reaching US$3,365 million in 2025. This overall increase is primarily driven by the significant growth in the International Operated Markets segment, with the U.S. segment also contributing to the positive trend.
The increasing capital expenditure across most segments suggests a strategic focus on long-term growth and market development. The contrasting trends between segments highlight differing investment priorities and opportunities within the company’s global operations.
Depreciation and amortization
McDonald’s Corp., depreciation and amortization by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| U.S. | |||||
| International Operated Markets | |||||
| International Developmental Licensed Markets & Corporate | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Depreciation and amortization expense exhibited a generally increasing trend across all reportable segments between 2021 and 2025. While fluctuations occurred, the overall pattern suggests growing investment in depreciable and amortizable assets. The rate of increase varied by segment.
- U.S. Segment
- Depreciation and amortization within the U.S. segment demonstrated consistent growth, increasing from US$841 million in 2021 to US$995 million in 2025. The growth was relatively steady, with incremental increases each year. This suggests ongoing investment in property, plant, and equipment, and potentially intangible assets within the U.S. market.
- International Operated Markets Segment
- This segment experienced a more volatile pattern. Depreciation and amortization decreased from US$726 million in 2021 to US$641 million in 2022, before recovering to US$789 million in 2025. The initial decline may indicate asset disposals or a change in the pace of capital expenditure. The subsequent recovery suggests renewed investment in this segment. The increase from 2022 to 2025 was more pronounced than in the U.S. segment.
- International Developmental Licensed Markets & Corporate Segment
- Depreciation and amortization in this segment showed a consistent upward trend, rising from US$301 million in 2021 to US$415 million in 2025. The growth was relatively consistent, indicating a steady increase in depreciable assets within these markets and corporate functions. The percentage increase over the period was substantial, suggesting significant investment relative to the initial base.
- Total Depreciation and Amortization
- Total depreciation and amortization expense increased from US$1,868 million in 2021 to US$2,199 million in 2025. The increase was not linear, with a slight decrease observed between 2021 and 2022, followed by more substantial growth in subsequent years. The largest year-over-year increase occurred between 2023 and 2024, reaching US$2,097 million. This overall increase reflects the combined effect of investment across all segments.
The observed trends in depreciation and amortization expense could be indicative of strategic capital allocation decisions, expansion initiatives, and asset replacement cycles within each segment. Further investigation into the underlying asset base and capital expenditure plans would provide a more comprehensive understanding of these patterns.