McDonald’s Corporation (MCD)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 10,344,000 | 10,522,200 | 7,825,400 | 9,127,900 | 6,140,700 |
| Revenue | US$ in thousands | 25,920,000 | 25,494,000 | 23,182,600 | 23,222,900 | 19,207,800 |
| Pretax margin | 39.91% | 41.27% | 33.76% | 39.31% | 31.97% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $10,344,000K ÷ $25,920,000K
= 39.91%
The pretax margin of McDonald's Corporation has shown a positive trend over the past five years, increasing from 31.97% in December 31, 2020, to 39.91% in December 31, 2024. This indicates that the company has been able to efficiently control its operating expenses and generate higher profits before taxes relative to its total revenue. The fluctuations in the pretax margin over the years may be attributed to various factors, such as changes in operating costs, pricing strategies, and overall economic conditions. Overall, the upward trend in the pretax margin demonstrates McDonald's ability to effectively manage costs and improve profitability over the analyzed period.
Peer comparison
Dec 31, 2024