McDonalds Corporation
MCD
$299.21 0.96%
Exchange: NYSE | Sector: Consumer Cyclical | Industry: Restaurants
Q1 2025
Published: May 1, 2025

Earnings Highlights

  • Revenue of $5.96B down 3.5% year-over-year
  • EPS of $2.60 decreased by 2.6% from previous year
  • Gross margin of 100.0%
  • Net income of 1.87B
  • ""We believe McDonald's can weather these difficult conditions better than most, as we have proven time and time again..." - Chris Kempczinski, CEO." - Chris Kempczinski

McDonald's Corporation (MCD) QQ1 2025 Financial Results: Navigating through Consumer Challenges with Strategic Value Initiatives

Executive Summary

McDonald's Corporation (NYSE: MCD) reported revenues of $5.956 billion for the first quarter of 2025, reflecting a decline of 3.45% year-over-year (YoY) and a 6.76% drop compared to the previous quarter (QoQ). This performance is attributed to macroeconomic pressures and a 1% decline in comparable sales globally due to subdued consumer sentiment, particularly among lower-income cohorts. The management remains optimistic about the company's resilience supported by a robust value proposition, highlighted by the successful launch of their McValue platform and marketing initiatives like the Minecraft Movie Meal. This strategic focus aims to attract a broader consumer base and drive traffic growth, despite continuing economic challenges.

Key Performance Indicators

Revenue

5.96B
QoQ: -6.76% | YoY:-3.45%

Gross Profit

5.96B
1.00% margin
QoQ: 61.89% | YoY:73.19%

Operating Income

2.65B
QoQ: -7.67% | YoY:-3.22%

Net Income

1.87B
QoQ: -7.34% | YoY:-3.16%

EPS

2.60
QoQ: -7.47% | YoY:-2.62%

Revenue Trend

Margin Analysis

Key Insights

**Revenue Performance**: $5.956 billion, down 3.45% YoY, down 6.76% QoQ. **Net Income**: $1.868 billion; Net Income Ratio: 31.37%. **Earnings Per Share (EPS)**: $2.60; diluted EPS same as basic due to no convertible securities. **Operating Income**: $2.648 billion with an operating margin of 44.46%. **Cash Flow Metrics**: Reduced margins due to inflationary pressures; overall cash flow stability maintained. **Comparative Metrics**: Higher operating margin compared to Domino's Pizza (26...

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q1 2025 5,956.00 2.60 -3.5% View
Q4 2024 6,388.00 2.80 -0.3% View
Q3 2024 6,874.00 3.13 +2.7% View
Q2 2024 6,490.00 2.80 -0.1% View
Q1 2024 6,169.00 2.66 +4.6% View