McDonalds Historical Income Statement
| MCD Stock | USD 290.28 1.81 0.63% |
Historical analysis of McDonalds income statement accounts such as Gross Profit of 8.7 B can show how well McDonalds performed in making a profits. Evaluating McDonalds income statement over time to spot trends is a great complementary tool to traditional technical analysis and can indicate the direction of McDonalds's future profits or losses.
Financial Statement Analysis is much more than just reviewing and examining McDonalds latest accounting reports to predict its past. Macroaxis encourages investors to analyze financial statements over time for various trends across multiple indicators and accounts to determine whether McDonalds is a good buy for the upcoming year.
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About McDonalds Income Statement Analysis
McDonalds Income Statement consists of revenues and expenses along with the resulting net income or loss. It represents the profit for the accounting period attributable to McDonalds shareholders. The income statement also shows McDonalds investors and management if the firm made money during the period reported. The result of an income statement is the net income that is calculated after subtracting the expenses from revenue. It is essential to investors both as an absolute measure as well as earnings per share (i.e., EPS).
McDonalds Income Statement Chart
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Total Revenue
Total revenue comprises all receipts McDonalds generated from the sale of its products or services. The total amount of income generated by the sale of goods or services related to the company's primary operations.Gross Profit
Gross profit is a required income statement account that reflects total revenue of McDonalds minus its cost of goods sold. It is profit before McDonalds operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.Other Operating Expenses
Other Operating Expenses is the expense which generally does not depend on sales or production quantities of McDonalds. It is also known as McDonalds overhead expenses. Typically these expenses include marketing, rent and utilities, office, leases, and other overhead cost. Expenses incurred from non-core business activities, including administrative and general expenses, but excluding costs directly related to production.Operating Income
Operating Income is the amount of profit realized from McDonalds operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of McDonalds is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.Net Income
Net income is one of the most important fundamental items in finance. It plays a large role in McDonalds financial statement analysis. It represents the amount of money remaining after all of McDonalds operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.Most accounts from McDonalds' income statement are interrelated and interconnected. However, analyzing income statement accounts one by one will only give a small insight into McDonalds current financial condition. On the other hand, looking into the entire matrix of income statement accounts, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in McDonalds. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.At present, McDonalds' Operating Income is projected to increase significantly based on the last few years of reporting. The current year's EBIT is expected to grow to about 12.3 B, whereas Total Revenue is forecasted to decline to about 18.3 B.
| 2021 | 2022 | 2023 | 2024 (projected) | Gross Profit | 12.6B | 13.2B | 14.2B | 8.7B | Total Revenue | 23.2B | 23.2B | 25.5B | 18.3B |
McDonalds income statement Correlations
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McDonalds Account Relationship Matchups
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McDonalds income statement Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Depreciation And Amortization | 1.6B | 1.8B | 1.9B | 1.9B | 2.0B | 1.2B | |
| Interest Expense | 1.1B | 1.2B | 1.2B | 1.2B | 1.4B | 1.4B | |
| Total Revenue | 21.1B | 19.2B | 23.2B | 23.2B | 25.5B | 18.3B | |
| Gross Profit | 11.1B | 9.8B | 12.6B | 13.2B | 14.2B | 8.7B | |
| Other Operating Expenses | 12.2B | 12.0B | 13.4B | 12.8B | 13.8B | 13.0B | |
| Operating Income | 9.1B | 7.3B | 10.4B | 9.4B | 11.6B | 12.2B | |
| Ebit | 7.4B | 7.5B | 10.2B | 10.3B | 11.7B | 12.3B | |
| Ebitda | 9.1B | 9.2B | 12.0B | 12.2B | 13.7B | 14.4B | |
| Cost Of Revenue | 10.0B | 9.5B | 10.6B | 10.0B | 11.3B | 9.6B | |
| Total Operating Expenses | 2.2B | 2.5B | 2.7B | 2.9B | 9.1B | 9.5B | |
| Income Before Tax | 8.0B | 6.1B | 9.1B | 7.8B | 10.5B | 11.0B | |
| Total Other Income Expense Net | (1.1B) | (1.2B) | (1.2B) | (1.5B) | (1.1B) | (1.1B) | |
| Net Income | 6.0B | 4.7B | 7.5B | 6.2B | 8.5B | 8.9B | |
| Income Tax Expense | 2.0B | 1.4B | 1.6B | 1.6B | 2.1B | 1.4B | |
| Selling General Administrative | 2.2B | 2.2B | 2.4B | 2.5B | 2.4B | 2.4B | |
| Net Income Applicable To Common Shares | 6.0B | 4.7B | 7.5B | 6.2B | 7.1B | 4.6B | |
| Net Income From Continuing Ops | 6.0B | 4.7B | 7.5B | 6.2B | 8.3B | 6.2B | |
| Non Operating Income Net Other | 70.2M | 34.8M | (42.3M) | (338.6M) | (304.7M) | (289.5M) | |
| Tax Provision | 2.0B | 1.4B | 1.6B | 1.6B | 2.0B | 1.6B | |
| Interest Income | 37M | 1.2B | 1.2B | 1.2B | 148.1M | 140.7M | |
| Net Interest Income | (1.1B) | (1.2B) | (1.2B) | (1.2B) | (1.2B) | (1.2B) | |
| Reconciled Depreciation | 1.6B | 1.8B | 329.7M | 370.4M | 1.9B | 1.0B |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.When determining whether McDonalds is a strong investment it is important to analyze McDonalds' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact McDonalds' future performance. For an informed investment choice regarding McDonalds Stock, refer to the following important reports:Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in McDonalds. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of McDonalds. If investors know McDonalds will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about McDonalds listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.01) | Dividend Share 6.68 | Earnings Share 11.38 | Revenue Per Share 36.01 | Quarterly Revenue Growth 0.027 |
The market value of McDonalds is measured differently than its book value, which is the value of McDonalds that is recorded on the company's balance sheet. Investors also form their own opinion of McDonalds' value that differs from its market value or its book value, called intrinsic value, which is McDonalds' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because McDonalds' market value can be influenced by many factors that don't directly affect McDonalds' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between McDonalds' value and its price as these two are different measures arrived at by different means. Investors typically determine if McDonalds is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, McDonalds' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.