McDonalds Historical Income Statement

MCD Stock  USD 278.62  4.01  1.42%   
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.
 
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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.
  
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 tightly coupled 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.

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

McDonalds Income Statement is one of the three primary financial statements used for reporting McDonalds's overall financial performance over a current year or for a given accounting period. An Income Statement sometimes referred to as the statement of McDonalds revenue and expense. McDonalds Income Statement primarily focuses on the company's revenues and expenses during a particular period.
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.

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.
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 tightly coupled 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 Profit12.6B13.2B14.2B8.7B
Total Revenue23.2B23.2B25.5B18.3B

McDonalds income statement Correlations

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McDonalds Account Relationship Matchups

McDonalds income statement Accounts

201920202021202220232024 (projected)
Depreciation And Amortization1.6B300.6M329.7M370.4M381.7M362.6M
Interest Expense1.1B1.2B1.2B1.2B1.4B1.4B
Total Revenue21.1B19.2B23.2B23.2B25.5B18.3B
Gross Profit11.1B9.8B12.6B13.2B14.2B8.7B
Other Operating Expenses12.2B12.0B13.4B12.8B13.7B13.0B
Operating Income9.1B7.3B10.4B9.4B11.7B12.3B
Ebit7.4B7.4B10.0B9.4B11.7B12.3B
Ebitda9.1B7.7B10.4B9.7B12.1B12.7B
Cost Of Revenue10.0B9.5B10.6B10.0B11.3B9.6B
Total Operating Expenses2.2B2.5B2.7B2.9B2.4B2.5B
Income Before Tax8.0B6.1B9.1B7.8B10.5B11.0B
Total Other Income Expense Net(1.1B)(1.2B)(1.2B)(1.5B)(1.2B)(1.2B)
Net Income6.0B4.7B7.5B6.2B8.5B8.9B
Income Tax Expense2.0B1.4B1.6B1.6B2.1B1.4B
Selling General Administrative2.2B2.2B2.4B2.5B2.4B2.4B
Net Income Applicable To Common Shares6.0B4.7B7.5B6.2B7.1B4.6B
Net Income From Continuing Ops6.0B4.7B7.5B6.2B8.3B6.2B
Non Operating Income Net Other70.2M34.8M(42.3M)(338.6M)(304.7M)(289.5M)
Tax Provision2.0B1.4B1.6B1.6B2.0B1.6B
Interest Income37M1.2B1.2B1.2B148.1M140.7M
Net Interest Income(1.1B)(1.2B)(1.2B)(1.2B)(1.2B)(1.2B)
Reconciled Depreciation1.6B1.8B329.7M370.4M1.9B1.0B

McDonalds Investors Sentiment

The influence of McDonalds' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in McDonalds. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to McDonalds' public news can be used to forecast risks associated with an investment in McDonalds. The trend in average sentiment can be used to explain how an investor holding McDonalds can time the market purely based on public headlines and social activities around McDonalds. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
McDonalds' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for McDonalds' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average McDonalds' news discussions. The higher the estimated score, the more favorable is the investor's outlook on McDonalds.

McDonalds Implied Volatility

    
  18.6  
McDonalds' implied volatility exposes the market's sentiment of McDonalds stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if McDonalds' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that McDonalds stock will not fluctuate a lot when McDonalds' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards McDonalds in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, McDonalds' short interest history, or implied volatility extrapolated from McDonalds options trading.

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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 tightly coupled 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.
Note that the McDonalds information on this page should be used as a complementary analysis to other McDonalds' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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Is McDonalds' industry 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
0.083
Dividend Share
6.23
Earnings Share
11.56
Revenue Per Share
35.024
Quarterly Revenue Growth
0.081
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.