McDonald’s Corporation (MCD)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 20,718,600 | 18,819,800 | 18,977,000 | 15,211,400 | 17,328,600 |
| Revenue | US$ in thousands | 25,493,700 | 23,182,600 | 23,222,900 | 19,207,800 | 21,364,400 |
| Gross profit margin | 81.27% | 81.18% | 81.72% | 79.19% | 81.11% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $20,718,600K ÷ $25,493,700K
= 81.27%
Based on the data provided, McDonald's Corp has consistently maintained a gross profit margin of 100.00% over the past five years (from 2019 to 2023). A gross profit margin of 100.00% indicates that the company is able to generate revenue above the cost of goods sold, resulting in a profit at the gross level for each year. This implies that McDonald's has been effectively managing its production and operational costs relative to its sales revenue during this period, showcasing strong operational efficiency and profitability in its core business activities. Furthermore, the stability of the gross profit margin over the years indicates the company's ability to maintain a consistent level of profitability despite changes in economic conditions or competitive pressures.
Peer comparison
Dec 31, 2023