McDonald’s Corporation (MCD)

Net profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	8,468,800	8,333,200	7,997,700	6,875,300	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	6,025,400	5,868,500	5,897,900	5,877,300
Revenue (ttm)	US$ in thousands	25,493,700	25,014,000	24,193,900	23,414,800	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	21,285,200	21,099,200	20,966,300	20,910,400
Net profit margin		33.22%	33.31%	33.06%	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%	28.31%	27.81%	28.13%	28.11%

December 31, 2023 calculation

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

The net profit margin of McDonald's Corp has shown a general upward trend over the eight quarters presented. In Q4 2023, the net profit margin reached 33.22%, which was slightly lower than the preceding quarter at 33.31%. Despite this slight decrease, the company has maintained a consistently high net profit margin above 25% since Q2 2022. This indicates that McDonald's is effectively managing its expenses relative to its revenue, resulting in strong profitability. The significant improvement from Q1 2023 to Q4 2023, where the net profit margin rose from 29.36% to 33.22%, demonstrates the company's ability to enhance its profitability over time. Overall, the increasing trend in net profit margin reflects positively on McDonald's financial performance and efficiency in generating profits.