McDonald's Corp
NYSE:MCD

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McDonald's Corp
NYSE:MCD
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Price: 314.57 USD 0.08% Market Closed
Market Cap: 224.9B USD

Net Margin
McDonald's Corp

31.8%
Current
31%
Average
3.2%
Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
31.8%
=
Net Income
8.2B
/
Revenue
25.7B

Net Margin Across Competitors

McDonald's Corp
Glance View

Economic Moat
Wide
Market Cap
225B USD
Industry
Hotels, Restaurants & Leisure

In the bustling world of global fast food, McDonald's Corporation stands as a towering testament to business acumen and operational consistency. Founded in 1940 by Richard and Maurice McDonald as a single restaurant in San Bernardino, California, the company has metamorphosed into a globally recognized giant, with thousands of outlets scattered across six continents. Ray Kroc, a visionary businessman, joined the company in 1955 and played a pivotal role in shaping McDonald's into a franchise model powerhouse. This model allowed for rapid, scalable growth, creating a symbiotic relationship between the corporation and independent franchisees, who run most of the McDonald’s restaurants around the world. McDonald’s derives a substantial portion of its revenue from franchisees through rent, royalties, and fees, all structured to encourage operational excellence and uniformity across stores, maintaining the brand's cohesive identity. The global reach of McDonald’s is not just a story of hamburgers and fries, but also of clever adaptation and shrewd market targeting. Its success is rooted in the standardization of its menu while introducing local flavors to cater to regional tastes, thereby broadening its appeal. Operational efficiency lies at the heart of its profitability, often embracing innovation in areas such as supply chain management and restaurant technology. McDonald's constantly refines its offerings and practices through a robust feedback loop that involves monitoring customer preferences and constantly adapting to health trends and consumer demand for convenience. The company’s revenue streams are diversified, benefiting not just from food sales but also through real estate investment, where McDonald's owns the land and buildings of its restaurants, leasing them to franchisees and garnering steady income. McDonald's has created an ecosystem that ensures customer loyalty and economic resilience, making it a formidable entity in the global restaurant industry.

MCD Intrinsic Value
207.74 USD
Overvaluation 34%
Intrinsic Value
Price

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What is Net Margin?

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin
31.8%
=
Net Income
8.2B
/
Revenue
25.7B
What is the Net Margin of McDonald's Corp?

Based on McDonald's Corp's most recent financial statements, the company has Net Margin of 31.8%.

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