McDonald’s Corporation (MCD)

Operating 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
Operating income (ttm)	US$ in thousands	11,712,000	11,645,900	11,665,900	11,849,900	11,645,900	11,426,700	10,982,600	9,590,400	9,371,000	9,185,400	9,408,000	10,387,300	10,356,000	10,101,800	9,641,700	7,911,700	7,324,000	7,473,700	7,356,600	8,669,400
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
Operating profit margin		45.19%	44.90%	45.29%	45.99%	45.68%	45.68%	45.39%	40.96%	40.42%	39.48%	39.87%	43.71%	44.59%	44.84%	44.34%	40.33%	38.13%	38.84%	38.06%	41.33%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $11,712,000K ÷ $25,920,000K
= 45.19%

Overall, McDonald’s Corporation has exhibited fluctuations in its operating profit margin over the analyzed periods. The operating profit margin reflects the company's ability to generate profits from its core operations.

From March 31, 2020, to December 31, 2020, the operating profit margin ranged from 38.06% to 41.33%, showcasing some variability in performance. However, there was a slight decline in the margin in December 2020 compared to March 2020.

Subsequently, from March 31, 2021, to June 30, 2021, there was a notable improvement in the operating profit margin, reaching levels between 40.33% and 44.34%. This increase in profitability suggests that McDonald’s was effectively managing its operating expenses and increasing revenue during this period.

The trend continued as the operating profit margin remained relatively stable and favorable from September 30, 2021, to June 30, 2023, averaging around 44.59% to 45.39%. This consistent performance indicates a strong operational efficiency and profitability for the company during these quarters.

In the last analyzed periods from September 30, 2023, to December 31, 2024, McDonald’s continued to maintain a high operating profit margin, remaining above 44% throughout these quarters. This sustained level of profitability suggests that the company has been successful in controlling costs and maximizing its operational income.

Overall, the fluctuation in McDonald’s operating profit margin over the analyzed period indicates the dynamic nature of its operating efficiency and performance in generating profits from its core business activities.