McDonald’s Corporation Financial Performance from Time to Time – McDonald’s Corporation is a Global Fast-food restaurant with a billion US. Dollars of assets and annual revenue. Many people know this restaurant as fast-food products, namely hamburgers, Fried Chicken, sandwiches, French Fries, dessert, and some beverage products. Historically, the journey of McDonald’s started on May 15, 1940, at 1398 North E Street at West 14th Street, San Bernardino, California. The founders of the company are Richard and Maurice McDonald. After acquiring Mcdonald’s to Raymond Albert Kroc (Ray Kroc), this company became a global restaurant with many branches in some countries.
Along with the development of the company, this company has become a global restaurant. In 2021, McDonald’s has 40,031 restaurants across the countries, with 93% of that or 37,295 franchised. With its core value, namely service, inclusion, integrity, community, and family, McDonald’s is still expanding to other countries. Total the employees of McDonald’s are around 200 thousand people across the countries. The expansion of its business, it affects the financial condition of the company. Here are the financial condition and performance of McDonald’s from time to time.
The Assets, Liabilities, and Equities of McDonald’s Corporation
| Years | Assets | Liabilities | Equities |
|---|---|---|---|
| Million US Dollars | Million US Dollars | Million US Dollars | |
| 1998 | 19,784 | 7,043 | 12,741 |
| 1999 | 20,983 | 7,252 | 13,731 |
| 2000 | 21,684 | 12,480 | 9,204 |
| 2001 | 22,535 | 13,047 | 9,488 |
| 2002 | 23,971 | 13,690 | 10,281 |
| 2003 | 25,525 | 13,543 | 11,982 |
| 2004 | 27,838 | 13,637 | 14,201 |
| 2005 | 29,989 | 14,843 | 15,146 |
| 2006 | 28,974 | 13,516 | 15,458 |
| 2007 | 29,392 | 14,112 | 15,280 |
| 2008 | 28,462 | 15,079 | 13,383 |
| 2009 | 30,225 | 16,191 | 14,034 |
| 2010 | 31,975 | 17,341 | 14,634 |
| 2011 | 32,990 | 18,600 | 14,390 |
| 2012 | 35,386 | 20,092 | 15,294 |
| 2013 | 36,626 | 20,616 | 16,010 |
| 2014 | 34,227 | 21,374 | 12,853 |
| 2015 | 37,939 | 30,851 | 7,088 |
| 2016 | 31,024 | 33,228 | -2,204 |
| 2017 | 33,804 | 37,072 | -3,268 |
| 2018 | 32,811 | 39,069 | -6,258 |
| 2019 | 47,511 | 55,721 | -8,210 |
| 2020 | 52,627 | 60,452 | -7,825 |
| 2021 | 53,854 | 58,455 | -4,601 |
| 2022 | 50,435 | 56,438 | -6,003 |
| Source : McDonald's Annual Report, 1999-2022 | |||
Historically, in 1998, 48 years after its founding, this company has 19.7 billion US. Dollars of Assets, with liabilities of around 7 billion U.S. Dollars. After 2 decades, exactly in 2022, this restaurant has assets of around 50 billion US. Dollars, with liabilities around 56 billion US. Dollars. The Restaurant has negative equities from 2016 to 2022, it indicates the liabilities are greater than the assets. Overall, all of these data were obtained from McDonald’s Annual report from 2008 to 2022.
The Revenue and Net Income of McDonald’s Corporation
| Years | Revenue | Net Income |
|---|---|---|
| Million US Dollars | Million US Dollars | |
| 1998 | 12,421 | 1,550 |
| 1999 | 13,259 | 1,948 |
| 2000 | 14,243 | 1,977 |
| 2001 | 14,870 | 1,637 |
| 2002 | 15,406 | 893 |
| 2003 | 17,140 | 1,471 |
| 2004 | 19,065 | 2,279 |
| 2005 | 20,460 | 2,602 |
| 2006 | 20,895 | 3,544 |
| 2007 | 22,787 | 2,395 |
| 2008 | 23,522 | 4,313 |
| 2009 | 22,744 | 4,551 |
| 2010 | 24,074 | 4,946 |
| 2011 | 27,006 | 5,503 |
| 2012 | 27,567 | 5,465 |
| 2013 | 28,106 | 5,586 |
| 2014 | 27,441 | 4,758 |
| 2015 | 25,413 | 4,529 |
| 2016 | 24,773 | 4,687 |
| 2017 | 22,960 | 5,192 |
| 2018 | 21,258 | 5,924 |
| 2019 | 21,365 | 6,025 |
| 2020 | 19,208 | 4,731 |
| 2021 | 23,223 | 7,545 |
| 2022 | 23,182 | 6,117 |
| Source : McDonald's Annual Report, 1998-2022 | ||
Based on the financial performance from 1998 to 2022, this company has been stable in gaining net income. In 1998, this company has 12 billion US. Dollars of revenue, with a net income of around 1.5 billion US. Dollars. After more than 2 decades, exactly in 2022, this company has revenue of around 23 billion US. Dollars, with a net income of around 6.1 billion US. Dollars. Historically, from 1998 to 2022, this company has been consistent in gaining net income. That’s a stable company overall.
On the financial indicators, the company has some financial indicator performance. From 1998 to 2021, the Net Profit Margin (NPM) of Mcdonald’s Is around 6% to 32%. Meanwhile, the Return on Assets (ROA) is around 4% to 18%. The Debt to Assets (DAR) ratio is about 39% to 119%.
According to CNN, Based shareholders ownership, there are some instituons which had large amount of share in McDonald’s. The majority shareholders includes The Vanguard Group, Inc. with ownership percentage around 8.96%, followed by BlackRock Fund Advisors 4.79%, SSgA Funds Management, Inc. 4.62%, Geode Capital Management LLC 2.00%, Wellington Management Co. LLP 1.66%, Norges Bank Investment Management 1.22%, and JPMorgan Investment Management 1.17%.
Bibliography of McDonald’s Corporation Financial Performance from Time to Time
McDonald’s. 2022. Investor Relations. Accessed via https://corporate.mcdonalds.com/corpmcd/investors.html on July 7th, 2022.
McDonald’s. 2022. Financial Information. Accessed via https://corporate.mcdonalds.com/corpmcd/investors/financial-information.html on July 7th, 2022.
CNN. 2023.
McDonald’s Corp (Top 10 Owners of McDonald’s Corp). Available at :
https://money.cnn.com/quote/shareholders/shareholders.html?symb=MCD&subView=institutional