10-QPeriod: Q3 FY2024

MCDONALDS CORP Quarterly Report for Q3 Ended Sep 30, 2024

Filed November 7, 2024For Securities:MCD

Summary

McDonald's Corporation reported its financial results for the third quarter and the first nine months of 2024. For the quarter ended September 30, 2024, total revenues increased by 3% to $6.87 billion, while net income saw a slight decrease of 3% to $2.26 billion, resulting in diluted earnings per share of $3.13. For the nine-month period, revenues grew by 2% to $19.53 billion, with net income decreasing by 3% to $6.21 billion, and diluted EPS at $8.59. The company's strategic initiative, 'Accelerating the Organization,' incurred $146 million in restructuring charges for the nine-month period. Despite a slight dip in global comparable sales, the U.S. market showed resilience with a 0.3% increase in comparable sales for the quarter. The company continues to invest in its growth strategy, focusing on digital, delivery, drive-thru, and restaurant development, with plans to open over 2,100 new restaurants globally in 2024.

Financial Highlights

51 data points
Beta

Revenue

$6.87B

90.6% Gross Margin

Net Income

$2.25B

32.8% Net Margin

EPS (Diluted)

$3.13

Total Assets

$56.17B

Cash & Equivalents

$1.22B

Free Cash Flow

$1.94B

Financial Statements
Beta
Revenue$6.87B
Cost of Revenue$646.00M
Gross Profit$6.23B
SG&A Expenses$647.00M
Operating Expenses$3.69B
Operating Income$3.19B
Interest Expense$381.00M
Net Income$2.25B
EPS (Basic)$3.15
EPS (Diluted)$3.13
Shares Outstanding (Basic)717
Shares Outstanding (Diluted)720

Key Highlights

  • 1Total revenues for the third quarter of 2024 increased 3% to $6.87 billion, while for the first nine months, revenues grew 2% to $19.53 billion.
  • 2Net income for the third quarter decreased 3% to $2.26 billion, leading to diluted EPS of $3.13, down 1%.
  • 3For the first nine months, net income decreased 3% to $6.21 billion, with diluted EPS at $8.59, down 2%.
  • 4Global comparable sales decreased by 1.5% for the quarter and 0.2% for the nine months, impacted by softer performance in International Operated Markets and International Developmental Licensed Markets.
  • 5The U.S. market demonstrated strength with comparable sales growth of 0.3% for the quarter and 0.7% for the nine months.
  • 6The company incurred $146 million in restructuring charges related to the 'Accelerating the Organization' initiative during the first nine months of 2024.
  • 7McDonald's continues aggressive expansion plans, targeting over 2,100 new restaurant openings globally in 2024 and aiming for 50,000 restaurants by the end of 2027.

Frequently Asked Questions

For the third quarter ended September 30, 2024, McDonald's reported total revenues of $6.87 billion, a 3% increase compared to the prior year. Net income was $2.26 billion, a 3% decrease, resulting in diluted earnings per share of $3.13, a 1% decrease.

Global comparable sales saw a decrease of 1.5% for the quarter. The U.S. segment performed positively with a 0.3% increase, while the International Operated Markets decreased by 2.1% and the International Developmental Licensed Markets decreased by 3.5%.

The 'Accelerating the Organization' initiative, aimed at modernizing operations, resulted in restructuring charges of $146 million for the first nine months of 2024. The company expects to incur approximately $250 million in restructuring charges for the full year 2024.

McDonald's is focused on its 'Accelerating the Arches' strategy, which includes doubling down on digital, delivery, drive-thru, and restaurant development. The company plans to open over 2,100 new restaurants globally in 2024, contributing to nearly 4% new unit growth, and aims to reach 50,000 restaurants by the end of 2027.