McDonalds Corporation (MCD) Q1 2025 Earnings Report

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McDonalds Corporation

MCD

$311.23 0.87%

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

MCD

McDonalds Corporation

Period Q1 2025

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

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

Decreasing

5.96B

QoQ: -6.76% | YoY: -3.45%

Gross Profit

Increasing

5.96B

1.00% margin

QoQ: 61.89% | YoY: 73.19%

Operating Income

Decreasing

2.65B

QoQ: -7.67% | YoY: -3.22%

Net Income

Decreasing

1.87B

QoQ: -7.34% | YoY: -3.16%

EPS

Decreasing

2.60

QoQ: -7.47% | YoY: -2.62%

Revenue Trend

Margin Analysis

Financial Highlights

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 (26.98%) and Chipotle Mexican Grill (43.98%).

Income Statement

Metric	Value	YoY Change	QoQ Change
Revenue	5.96B	-3.45%	-6.76%
Gross Profit	5.96B	73.19%	61.89%
Operating Income	2.65B	-3.22%	-7.67%
Net Income	1.87B	-3.16%	-7.34%
EPS	2.60	-2.62%	-7.47%

Key Financial Ratios

Gross Profit Margin

Weak

1.00%

Gross profit margin is below industry norms, profitability concerns

Operating Profit Margin

Excellent

44.50%

Operating margin is exceptional, indicating strong pricing power and operational efficiency

Net Profit Margin

Excellent

31.40%

Net profit margin is exceptional, indicating strong pricing power and operational efficiency

P/E Ratio

Growth

29.96x

Elevated P/E suggests growth expectations or premium valuation

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
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

McDonalds Corporation (MCD) Q1 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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