McDonald’s Corporation (MCD)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	8,222,000	8,245,000	8,307,000	8,595,000	8,468,000	8,332,400	7,997,000	6,875,000	6,177,400	5,912,800	6,081,100	7,112,400	7,545,200	7,283,600	6,896,300	5,160,800	4,730,500	4,925,500	4,770,800	5,803,900
Revenue (ttm)	US$ in thousands	25,920,000	25,938,200	25,757,200	25,765,200	25,494,200	25,014,500	24,194,600	23,415,000	23,182,600	23,265,200	23,594,400	23,763,900	23,222,900	22,527,600	21,744,400	19,618,000	19,207,800	19,243,000	19,327,200	20,975,500
Net profit margin		31.72%	31.79%	32.25%	33.36%	33.22%	33.31%	33.05%	29.36%	26.65%	25.41%	25.77%	29.93%	32.49%	32.33%	31.72%	26.31%	24.63%	25.60%	24.68%	27.67%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $8,222,000K ÷ $25,920,000K
= 31.72%

McDonald’s Corporation’s net profit margin has shown fluctuations over the analyzed period. The net profit margin measures the percentage of revenue that translates into profit after all expenses have been deducted.

From March 31, 2020, to December 31, 2020, the net profit margin ranged between 24.63% and 27.67%. There was a slight decrease seen in the middle of 2020, but the margin started to improve towards the end of the year and into the first quarter of 2021.

During the first half of 2021, McDonald’s net profit margin saw significant growth, reaching a peak of 32.49% by the end of December 31, 2021. This increase could be attributed to various factors, such as cost management initiatives or increased revenues.

However, in the following quarters of 2022 and early 2023, the net profit margin experienced a slight decline, dropping to as low as 25.41% by September 30, 2022. This decrease might indicate rising costs or other operational challenges impacting profitability.

Starting from the first quarter of 2023, McDonald’s net profit margin began to recover and showed consistent growth, reaching a high of 33.36% by March 31, 2024. The company was able to enhance its profitability, potentially through efficient cost control measures or revenue optimization strategies.

Overall, the analysis of McDonald’s Corporation’s net profit margin reveals a fluctuating trend with periods of both growth and decline. It is important for investors and stakeholders to closely monitor these fluctuations to assess the company’s financial health and performance over time.