McDonald’s Corporation (MCD)

Pretax 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 10,343,000 10,321,000 10,401,500 10,663,200 10,522,200 10,346,100 9,958,800 8,551,200 7,825,400 7,594,300 7,749,500 8,716,400 9,127,900 8,850,100 8,375,800 6,648,500 6,140,700 6,337,500 6,272,600 7,631,700
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
Pretax margin 39.90% 39.79% 40.38% 41.39% 41.27% 41.36% 41.16% 36.52% 33.76% 32.64% 32.84% 36.68% 39.31% 39.29% 38.52% 33.89% 31.97% 32.93% 32.45% 36.38%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $10,343,000K ÷ $25,920,000K
= 39.90%

The pretax margin of McDonald's Corporation has fluctuated over the past few years, ranging from a low of 31.97% on December 31, 2020, to a high of 41.39% on March 31, 2024. The trend shows some variability, with occasional spikes and dips in the margin. Overall, the company has shown a generally strong performance in terms of generating pretax profit relative to its total revenue. The pretax margin reached its peak in the first half of 2024, indicating efficient cost management and revenue generation during that period. However, it slightly declined by the end of 2024, which may warrant further analysis to understand the factors impacting the margin.