"We literally wrote the playbook on value, and we are committed to upholding our leadership within the industry." - Chris Kempczinski
— Chris Kempczinski
03Detailed Report
MCD
McDonalds Corporation
Period
Q1 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 25, 2026
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Executive Summary
McDonald's Corporation reported its Q1 2024 financial results with a revenue of $6.169 billion, marking a 4.59% increase compared to the same period last year. Despite facing significant macroeconomic pressures leading to flat industry traffic in many key markets, McDonald's achieved its 13th consecutive quarter of positive comparable sales growth at nearly 2%. The management team emphasized the company's commitment to value and customer satisfaction, as evidenced by multiple value menu initiatives launched across various international markets, including the successful McSmart menu in Germany, aimed at driving traffic and improving customer experience. CEO Chris Kempczinski underscored the brand's resilience stemming from its robust operational execution, modernized restaurants, and strong franchisee relationships but acknowledged challenges such as rising consumer price sensitivity.
Key Performance Indicators
Revenue
Increasing
6.17B
QoQ: -3.70% | YoY: 4.59%
Gross Profit
Increasing
3.44B
55.75% margin
QoQ: -5.89% | YoY: 3.77%
Operating Income
Increasing
2.74B
QoQ: -2.35% | YoY: 8.06%
Net Income
Increasing
1.93B
QoQ: -5.39% | YoY: 7.05%
EPS
Increasing
2.67
QoQ: -5.32% | YoY: 8.10%
Revenue Trend
Margin Analysis
Financial Highlights
1. Revenue: $6.169 billion (YoY Growth: 4.59%, QoQ Decline: -3.70%)
2. Net Income: $1.929 billion (YoY Growth: 7.05%, QoQ Decline: -5.39%)
3. Earnings Per Share (EPS): $2.67 (YoY Growth: 8.10%, QoQ Decline: -5.32%)
4. Operating Income: $2.736 billion (Operating Margin: 44.4%)
5. Free Cash Flow: $1.843 billion
6. Total Assets: $53.513 billion, Total Liabilities: $58.346 billion
7. Debt to Equity Ratio: -10.53, indicating a highly leveraged structure with equity negative due to accumulated losses.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.17B
4.59%
-3.70%
Gross Profit
3.44B
3.77%
-5.89%
Operating Income
2.74B
8.06%
-2.35%
Net Income
1.93B
7.05%
-5.39%
EPS
2.67
8.10%
-5.32%
Key Financial Ratios
Gross Profit Margin
Good
55.70%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
44.40%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
31.30%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
3.60%
Return on assets is acceptable but below top-tier companies
Return on Equity
Weak
-0.40%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.83
Current ratio below safe levels, potential liquidity risk
Debt to Equity
Conservative
-10.53
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
26.21x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Undervalued
-41.86x
Trading below book value, potential value opportunity or distressed
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