McDonald’s Corporation (MCD)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	10,522,200	7,825,400	9,127,900	6,140,700	8,018,100
Revenue	US$ in thousands	25,493,700	23,182,600	23,222,900	19,207,800	21,364,400
Pretax margin		41.27%	33.76%	39.31%	31.97%	37.53%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $10,522,200K ÷ $25,493,700K
= 41.27%

The pretax margin of McDonald's Corp has shown fluctuations over the past five years, ranging from a low of 31.97% in 2020 to a high of 41.27% in 2023. This metric indicates the company's efficiency in generating profits before accounting for taxes relative to its total revenue. The upward trend in the pretax margin from 2020 to 2023 suggests an improvement in the company's operational efficiency and cost management, leading to a higher proportion of earnings retained as profit. However, the dip in 2022 compared to 2021 may indicate some challenges or increased expenses during that period. Overall, McDonald's ability to consistently maintain a relatively high pretax margin demonstrates its proficiency in managing costs and generating profits.