10-KPeriod: FY2024

MCDONALDS CORP Annual Report, Year Ended Dec 31, 2024

Filed February 25, 2025For Securities:MCD

Summary

McDonald's Corporation reported its fiscal year 2024 results, facing a slight decrease in global comparable sales (-0.1%), with mixed performance across segments. The U.S. saw a modest increase of 0.2%, while International Operated Markets and International Developmental Licensed Markets experienced slight decreases. Despite this, consolidated revenues grew 2% to $25.9 billion, and systemwide sales reached $130.7 billion. The company continued to invest in its 'Accelerating the Arches' growth strategy, focusing on marketing, core menu innovation (like the 'Best Burger' initiative), and accelerating digital, delivery, drive-thru, and restaurant development. Significant capital expenditure in 2024 was directed towards new restaurant openings and enhancements, with over 2,100 new restaurants added globally. The company remains committed to returning value to shareholders, with a 6% increase in quarterly dividend and a total of $7.7 billion returned through dividends and share repurchases in 2024. The company also reported an increase in cash from operations but a decrease in free cash flow, alongside a higher capital expenditure budget for 2025 to support further expansion.

Financial Highlights

49 data points
Beta

Revenue

$25.92B

Net Income

$8.22B

31.7% Net Margin

EPS (Diluted)

$11.39

Total Assets

$55.18B

Cash & Equivalents

$1.08B

Free Cash Flow

$6.67B

Financial Statements
Beta
Revenue$25.92B
SG&A Expenses$2.86B
Operating Expenses$14.21B
Operating Income$11.71B
Interest Expense$1.51B
Net Income$8.22B
EPS (Basic)$11.45
EPS (Diluted)$11.39
Shares Outstanding (Basic)718
Shares Outstanding (Diluted)722

Key Highlights

  • 1Global comparable sales saw a slight decrease of 0.1% in 2024, with the U.S. market showing marginal growth of 0.2% and international markets experiencing slight declines.
  • 2Consolidated revenues increased by 2% to $25.9 billion, and systemwide sales grew by 1% (2% in constant currencies) to $130.7 billion, demonstrating continued business scale.
  • 3The company is executing its 'Accelerating the Arches' growth strategy, emphasizing 'Maximize Marketing', 'Commit to Core', and 'Double Down on 4D's' (Digital, Delivery, Drive Thru, Restaurant Development).
  • 4Significant investment in expansion, with over 2,100 new restaurants opened globally in 2024, and plans to open approximately 2,200 in 2025, targeting 50,000 global units by 2027.
  • 5Shareholder returns remain a priority, with a 6% increase in quarterly dividend and a total of $7.7 billion returned through dividends and share repurchases in 2024.
  • 6Free cash flow decreased by 8% to $6.7 billion in 2024, primarily due to increased investing activities and capital expenditures.
  • 7The company is actively investing in its digital platforms, aiming to increase 90-day active loyalty program users to 250 million by 2027.

Frequently Asked Questions

In 2024, McDonald's reported consolidated revenues of $25.9 billion, a 2% increase over the prior year. Systemwide sales also saw growth, increasing by 1% (2% in constant currencies) to $130.7 billion. However, global comparable sales experienced a slight decrease of 0.1%, with the U.S. market at 0.2% growth and international segments showing minor declines. Net income decreased by 3% to $8.2 billion, and diluted earnings per share fell by 1% to $11.39.

McDonald's is executing its 'Accelerating the Arches' growth strategy, which focuses on three core pillars: 'Maximize Marketing' to build relevance and emotional connections; 'Commit to Core' by innovating its iconic menu items like the 'Best Burger' initiative and expanding chicken offerings; and 'Double Down on the 4D's' by accelerating Digital, Delivery, Drive Thru, and Restaurant Development. The company is also building consumer, restaurant, and corporate platforms to enhance efficiency and customer experience.

McDonald's is significantly investing in restaurant development, planning to open approximately 2,200 new restaurants globally in 2025 as part of its strategy to reach 50,000 units by 2027. Capital expenditures are expected to increase to $3.0-$3.2 billion in 2025 to support this expansion. Simultaneously, the company is committed to shareholder returns, having increased its quarterly dividend by 6% and returning a total of $7.7 billion in 2024 through dividends and share repurchases.

The report mentions that the war in the Middle East continued to negatively impact Systemwide sales and revenue, primarily in the International Developmental Licensed Markets & Corporate segment. The company monitors evolving situations, expecting continued negative impacts until conflicts conclude and macroeconomic conditions recover. Additionally, the report notes that unfavorable general economic conditions and inflationary pressures can impact consumer spending and operational performance.