Detailed financial statements for McDonald's Corporation (MCD): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
McDonald's Corporation operates and licenses its renowned fast-food chain worldwide, with a significant presence in both the United States and international markets. Their comprehensive menu offers classic items like hamburgers and cheeseburgers, a variety of chicken options including sandwiches and nuggets, alongside lighter choices such as wraps, french fries, and salads.
Analysis Summary
McDonald's Corporation reported revenue of $26.89B in the most recent fiscal year, growing at a 5-year CAGR of 7.0%. Net income reached $8.56B, with a 12.6% 5-year CAGR.
Trailing-twelve-month margins: gross margin 57.4%, operating margin 45.8%, net margin 31.7%. Free cash flow grew at 9.2% CAGR over 5 years.
At the current price of $233.04, MCD trades at a P/E of 18.84 and an ROE of -5.61%. Market capitalisation stands at $165.6B, placing it among large-cap names.
Balance sheet quality for MCD: current ratio of 1.0, net debt of $54.04B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is decent: free cash flow of $7.19B represents 84% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $24.62B | $22.82B | $21.26B | $21.36B | $19.21B | $23.22B | $23.18B | $25.50B | $25.92B | $26.89B |
| Cost of Revenue | $14.42B | $12.20B | $10.43B | $10.19B | $9.46B | $10.64B | $9.97B | $10.93B | $11.21B | $11.45B |
| Gross Profit | $10.20B | $10.62B | $10.83B | $11.18B | $9.75B | $12.58B | $13.21B | $14.56B | $14.71B | $15.44B |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $2.38B | $2.23B | $1.99B | $1.97B | $2.25B | $2.38B | $2.49B | $2.44B | $2.41B | $2.58B |
| Operating Expenses | $2.46B | $1.07B | $2.01B | $2.11B | $2.43B | $2.22B | $3.84B | $2.92B | $3.00B | $3.04B |
| Operating Income | $7.74B | $9.55B | $8.82B | $9.07B | $7.32B | $10.36B | $9.37B | $11.65B | $11.71B | $12.39B |
| EBITDA | $9.27B | $10.86B | $10.28B | $10.76B | $9.11B | $12.18B | $10.90B | $13.86B | $13.95B | $14.64B |
| Interest Expense | $884.8M | $921.3M | $981.2M | $1.12B | $1.22B | $1.19B | $1.21B | $1.36B | $1.51B | $1.58B |
| Pre-tax Income | $6.87B | $8.57B | $7.82B | $8.02B | $6.14B | $9.13B | $7.83B | $10.52B | $10.35B | $10.90B |
| Income Tax | $2.18B | $3.38B | $1.89B | $1.99B | $1.41B | $1.58B | $1.65B | $2.05B | $2.12B | $2.33B |
| Net Income | $4.69B | $5.19B | $5.92B | $6.03B | $4.73B | $7.55B | $6.18B | $8.47B | $8.22B | $8.56B |
| EPS | $5.49 | $6.43 | $7.61 | $7.95 | $6.35 | $10.11 | $8.39 | $11.63 | $11.45 | $12.00 |
| EPS (Diluted) | $5.44 | $6.37 | $7.54 | $7.88 | $6.31 | $10.04 | $8.33 | $11.56 | $11.39 | $11.95 |
| Shares Outstanding (Diluted) | $861.2M | $815.5M | $785.6M | $764.9M | $750.1M | $751.8M | $741.3M | $732.3M | $721.9M | $716.4M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $7.08B | $7.01B | $6.52B | $7.10B |
| Gross Profit | $4.11B | $4.03B | $3.64B | $4.12B |
| Operating Income | $3.36B | $3.16B | $2.88B | $3.30B |
| EBITDA | $3.91B | $3.70B | $3.51B | $3.91B |
| Net Income | $2.28B | $2.16B | $1.98B | $2.36B |
| EPS | $3.20 | $3.03 | $2.79 | $3.32 |
| EPS (Diluted) | $3.18 | $3.03 | $2.78 | $3.32 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $1.22B | $2.46B | $866.0M | $898.5M | $3.45B | $4.71B | $2.58B | $4.58B | $1.08B | $774.0M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $1.47B | $1.98B | $2.44B | $2.22B | $2.11B | $1.87B | $2.12B | $2.49B | $2.38B | $2.47B |
| Inventory | $58.9M | $58.8M | $51.1M | $50.2M | $51.1M | $55.6M | $52.0M | $53.0M | $56.0M | $61.0M |
| Total Current Assets | $4.85B | $5.33B | $4.05B | $3.56B | $6.24B | $7.15B | $5.42B | $7.99B | $4.60B | $4.16B |
| Property, Plant & Equipment | $21.26B | $22.45B | $22.84B | $37.42B | $38.79B | $38.27B | $36.34B | $38.42B | $38.63B | $42.85B |
| Goodwill | $2.34B | $2.38B | $2.33B | $2.68B | $2.77B | $2.78B | $2.90B | $3.04B | $3.15B | $3.35B |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $1.06B |
| Total Assets | $31.02B | $33.80B | $32.81B | $47.51B | $52.63B | $53.85B | $50.44B | $56.15B | $55.18B | $59.52B |
| Accounts Payable | $756.0M | $924.8M | $1.21B | $988.2M | $741.3M | $1.01B | $980.2M | $1.10B | $1.03B | $1.15B |
| Short-term Debt | $77.2M | 0 | 0 | $59.1M | $2.24B | 0 | 0 | $2.19B | 0 | 0 |
| Total Current Liabilities | $3.47B | $2.89B | $2.97B | $3.62B | $6.18B | $4.02B | $3.80B | $6.86B | $3.86B | $4.36B |
| Long-term Debt | $25.88B | $29.54B | $31.08B | $34.12B | $35.20B | $35.62B | $35.90B | $37.15B | $38.42B | $39.97B |
| Total Liabilities | $33.23B | $37.07B | $39.07B | $55.72B | $60.45B | $58.46B | $56.44B | $60.85B | $58.98B | $61.31B |
| Retained Earnings | $46.22B | $48.33B | $50.49B | $52.93B | $53.91B | $57.53B | $59.54B | $63.48B | $66.83B | $70.28B |
| Total Equity | -$2.20B | -$3.27B | -$6.26B | -$8.21B | -$7.82B | -$4.60B | -$6.00B | -$4.71B | -$3.80B | -$1.79B |
| Total Debt | $25.96B | $29.54B | $31.08B | $47.56B | $51.46B | $49.35B | $48.70B | $53.09B | $51.95B | $54.81B |
| Net Debt | $24.73B | $27.07B | $30.21B | $46.66B | $48.01B | $44.64B | $46.12B | $48.51B | $50.86B | $54.04B |
| Working Capital | $1.38B | $2.44B | $1.08B | -$63.1M | $62.0M | $3.13B | $1.62B | $1.13B | $738.0M | -$198.0M |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $2.41B | $774.0M | $1.17B | $822.0M |
| Total Assets | $60.61B | $59.52B | $60.04B | $59.92B |
| Total Liabilities | $62.77B | $61.31B | $61.32B | $60.94B |
| Total Equity | -$2.16B | -$1.79B | -$1.29B | -$1.02B |
| Total Debt | $55.82B | $54.81B | $54.88B | $54.59B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $4.69B | $5.19B | $5.92B | $6.03B | $4.73B | $7.55B | $6.18B | $8.47B | $8.22B | $8.56B |
| Depreciation & Amortization | $1.52B | $1.36B | $1.48B | $1.62B | $1.75B | $1.87B | $1.87B | $1.98B | $2.10B | $2.20B |
| Stock-based Compensation | $131.3M | $117.5M | $125.1M | $109.6M | $92.4M | $139.2M | $167.0M | $175.2M | $172.0M | $165.0M |
| Change in Working Capital | $167.0M | -$980.5M | -$472.7M | $298.5M | -$212.1M | $454.2M | -$644.6M | -$108.0M | -$438.0M | $106.0M |
| Operating Cash Flow | $6.06B | $5.55B | $6.97B | $8.12B | $6.27B | $9.14B | $7.39B | $9.61B | $9.45B | $10.55B |
| Capital Expenditure | -$1.82B | -$1.85B | -$2.74B | -$2.39B | -$1.64B | -$2.04B | -$1.90B | -$2.36B | -$2.77B | -$3.37B |
| Acquisitions | $866.1M | $2.49B | $589.5M | -$48.9M | $37.6M | -$178.0M | -$322.2M | -$246.0M | -$2.19B | $244.0M |
| Stock Repurchased | -$11.17B | -$4.69B | -$5.21B | -$4.98B | -$907.8M | -$845.5M | -$3.90B | -$3.05B | -$2.82B | -$2.06B |
| Dividends Paid | -$3.06B | -$3.09B | -$3.26B | -$3.58B | -$3.75B | -$3.92B | -$4.17B | -$4.53B | -$4.87B | -$5.12B |
| Free Cash Flow | $4.24B | $3.70B | $4.22B | $5.73B | $4.62B | $7.10B | $5.49B | $7.25B | $6.67B | $7.19B |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $3.43B | $2.70B | $2.41B | $2.81B |
| Capital Expenditure | -$1.01B | -$1.06B | -$682.0M | -$834.0M |
| Free Cash Flow | $2.42B | $1.64B | $1.73B | $1.98B |
| Dividends Paid | -$1.26B | -$1.32B | -$1.32B | -$1.32B |
| Stock-based Compensation | $39.0M | $37.0M | $60.0M | $39.0M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | -7.3% | -6.8% | +0.5% | -10.1% | +20.9% | -0.2% | +10.0% | +1.7% | +3.7% | |
| Net Income Growth (YoY) | +10.8% | +14.1% | +1.7% | -21.5% | +59.5% | -18.1% | +37.1% | -2.9% | +4.1% | |
| EPS Growth (YoY) | +17.1% | +18.4% | +4.5% | -20.1% | +59.2% | -17.0% | +38.6% | -1.5% | +4.8% | |
| Shares Change (YoY) | -5.3% | -3.7% | -2.6% | -1.9% | +0.2% | -1.4% | -1.2% | -1.4% | -0.8% | |
| FCF Growth (YoY) | -12.8% | +14.3% | +35.6% | -19.3% | +53.6% | -22.7% | +32.2% | -8.0% | +7.7% | |
| Gross Margin | 41.4% | 46.5% | 51.0% | 52.3% | 50.8% | 54.2% | 57.0% | 57.1% | 56.8% | 57.4% |
| Operating Margin | 31.5% | 41.9% | 41.5% | 42.5% | 38.1% | 44.6% | 40.4% | 45.7% | 45.2% | 46.1% |
| EBITDA Margin | 37.6% | 47.6% | 48.4% | 50.4% | 47.4% | 52.5% | 47.0% | 54.4% | 53.8% | 54.4% |
| Net Margin | 19.0% | 22.8% | 27.9% | 28.2% | 24.6% | 32.5% | 26.6% | 33.2% | 31.7% | 31.9% |
| FCF Margin | 17.2% | 16.2% | 19.9% | 26.8% | 24.1% | 30.6% | 23.7% | 28.5% | 25.7% | 26.7% |
| Effective Tax Rate | 31.7% | 39.4% | 24.2% | 24.9% | 23.0% | 17.3% | 21.1% | 19.5% | 20.5% | 21.4% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $4.92 | $4.53 | $5.38 | $7.49 | $6.17 | $9.45 | $7.40 | $9.91 | $9.24 | $10.03 |
| Dividends Per Share | $3.55 | $3.79 | $4.14 | $4.68 | $5.00 | $5.21 | $5.62 | $6.19 | $6.75 | $7.14 |
| Shares Outstanding (Basic) | $854.4M | $807.4M | $778.2M | $758.1M | $744.6M | $746.3M | $736.5M | $727.9M | $718.3M | $713.4M |
What to look at in Consumer Cyclical companies
- 5y avg operating margin (Cycle average) — Look at the cycle average, not the current year (peak or trough).
- Inventory turnover (>=4x/year) — Healthy retail rotates inventory fast. A drop signals weak demand.
- 5y avg ROIC (>=12%) — Cyclicals with avg ROIC >12% are structural winners.
- Net debt / EBITDA (peak) (<3x trough) — In cyclicals debt kills in recessions.
- Current Ratio (>1.5x) — Survives 12-18 months without operating cash.
- Altman Z-Score (>2.99 safe) — Bankruptcy model — key in cyclicals sensitive to recessions.
Profitability
| Return on Equity | -561.20% |
| Return on Invested Capital | 17.63% |
| Return on Assets | 14.66% |
| Gross Margin | 57.39% |
| Operating Margin | 45.84% |
| Net Margin | 31.72% |
Financial Health
| Debt / Equity | -53.36 |
| Current Ratio | 1.08 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 4.92 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 22.17 | 26.77 | 23.33 | 24.86 | 33.79 | 26.52 | 31.41 | 25.50 | 25.32 | 25.47 |
| P/B | -47.18 | -42.52 | -22.08 | -18.25 | -20.42 | -43.48 | -32.33 | -45.86 | -54.85 | -121.74 |
| P/S | 4.22 | 6.09 | 6.50 | 7.01 | 8.32 | 8.61 | 8.37 | 8.47 | 8.03 | 8.11 |
| Gross Margin | 41.4% | 46.5% | 51.0% | 52.3% | 50.8% | 54.2% | 57.0% | 57.1% | 56.8% | 57.4% |
| Operating Margin | 31.5% | 41.9% | 41.5% | 42.5% | 38.1% | 44.6% | 40.4% | 45.7% | 45.2% | 46.1% |
| Net Margin | 19.0% | 22.8% | 27.9% | 28.2% | 24.6% | 32.5% | 26.6% | 33.2% | 31.7% | 31.9% |
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Explore sector: Consumer Cyclical · Restaurants
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