What does the company do?
McDonald’s Corporation franchises and operates McDonald’s restaurants in the food service industry. These restaurants serve a varied, limited, value-priced menu in more than 100 countries globally. The restaurants are operated either by the Company or by franchisees, including franchisees under franchise arrangements, and foreign-affiliated markets and developmental licensees under license agreements. During the year ended December 31, 2007, the Company sold its businesses in Brazil, Argentina, Mexico, Puerto Rico, Venezuela and 13 other countries in Latin America and the Caribbean, which totaled 1,571 restaurants, to a developmental licensee organization. The Company and its franchisees purchase food, packaging, equipment and other goods from numerous independent suppliers.
How much does the company sell and earn?
Investors need to know how much stuff or services a company sells, and how much of that total it keeps as income (or profit) to grow its business or return to shareholders. The more of each, the better. In general, look for companies that sell and earn more than peers.
- McDonald's one-year sales: 22.34 Bil.
Difference from the average for the Restaurants group: 37.83% - McDonald's one-year income: 4.32 Bil.
Difference from the average for the Restaurants group: 62.10%| Sales & Income (past 12 months) | Company | Industry |
|---|
| Sales | 22.34 Bil | 16.21 Bil | | Income | 4.32 Bil | 2.66 Bil |
How fast is the company growing?
- McDonald's one-year sales growth: -6.60%.
Difference from the average for the Restaurants group: -6.10 pct. pts. - McDonald's one-year income growth: 0.20%.
Difference from the average for the Restaurants group: -11.50 pct. pts.| Sales & Income Growth (past 12 months) | Company | Industry |
|---|
| Sales Growth | -6.60% | -0.50% | | Income Growth | 0.20% | 11.70% |
How profitable is the company?
Investors prefer companies that increase profit margins -- the percentage of sales that they keep -- every year. This is accomplished either by lowering expenses or raising prices. Look for companies that consistently find ways to squeeze more profits out of sales than their peers.
- McDonald's one-year net profit margin: 19.3%
Difference from the company's 5-year average net profit margin: 5.6 pct. pts.
Difference from the average for the Restaurants group: 5.9 pct. pts.
| Net profit margins (%) |
|---|
| Company | 19.3% | | Company 5-Yr Avg. | 13.7% | | Industry | 13.5% |
How is the company's financial health?
The debt/equity ratio shows how much a firm has borrowed as a percentage of its stock equity. The lower, the better.
- McDonald's debt/equity ratio: 0.84.
Difference from the average for the Restaurants group: -33.33%.
| | Company | Industry |
|---|
| Debt/equity ratio | 0.84 | 1.26 |
|
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