McDonald’s Corporation (MCD)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	8,468,800	6,177,400	7,545,200	4,730,500	6,025,400
Revenue	US$ in thousands	25,493,700	23,182,600	23,222,900	19,207,800	21,364,400
Net profit margin		33.22%	26.65%	32.49%	24.63%	28.20%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $8,468,800K ÷ $25,493,700K
= 33.22%

The net profit margin of McDonald's Corp has displayed fluctuations over the past five years. In 2023, the net profit margin reached 33.22%, reflecting a significant increase compared to the previous year's 26.65%. This improvement indicates that the company effectively managed its costs and expenses relative to its revenue.

In 2021, the net profit margin was also relatively high at 32.49%, showing consistent profitability. However, in 2020, the margin dropped to 24.63%, suggesting a decrease in profitability potentially due to various factors such as economic conditions or operational challenges.

Overall, McDonald's Corp has generally maintained sound profitability levels over the period under review, with the net profit margin fluctuating within a certain range. This metric is crucial as it indicates the percentage of each revenue dollar that translates into profit after all expenses are deducted, highlighting the company's efficiency in generating profits from its operations.