MCD MCDONALDS CORP

Overview and Growth

Fiscal 2025 results for MCDONALDS CORP combined $26.89B of revenue with net income of $8.56B and an operating cash inflow of $10.55B. Revenue of $26.89B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 3.7% above fiscal 2024 revenue of $25.92B, marking a year-over-year increase. The company reported diluted EPS of $11.95, adding a shareholder-level measure to the absolute income figures considered below. Diluted EPS increased by 4.9% from $11.39 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. The company employed $59.52B of total assets, the balance-sheet base supporting its current operating and cash-flow results. Revenue equaled 0.45x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Operating income was $12.39B, the earnings remaining from reported operations after the company’s recognized operating cost structure. The operating result equaled 46.1% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $8.56B for the fiscal year. Measured against reported revenue, net income produced a 31.9% margin after operating costs and the remaining recognized items. Income tax expense totaled $2.33B, providing the reported tax component that separates pretax and after-tax earnings. Net income represented 14.4% of period-end assets, placing the company’s bottom-line result against the total resource base employed. Current net income of $8.56B was above fiscal 2024 net income of $8.22B, showing the direction of the bottom-line change.

Liquidity and Capital Structure

At period end, the $59.52B asset base was financed through $61.31B of liabilities and -$1.79B of equity. Equity was negative at -$1.79B, meaning liabilities exceeded the residual book value available to shareholders and weakening balance-sheet resilience. The near-term balance sheet paired $4.16B of current assets with $4.36B of current liabilities at the reporting date. The current ratio was 0.95x; current liabilities exceeded current assets, leaving a short-term liquidity deficit. The company held $774.00M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 17.7%, excluding receivables and other current assets. Total debt was $40.70B, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-assets relationship was 68.4%, comparing borrowing with the total asset balance. Relative to total assets, liabilities measured 103.0%, complementing the separate equity-based view of the company’s capital structure. Measured against total assets, cash and equivalents represented 1.3%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $55.18B in fiscal 2024, the current asset base moved 7.9% and finished higher. Cash and equivalents were 28.7% lower than fiscal 2024 cash of $1.08B, showing the year-over-year change in liquid resources.

Cash Flow and Earnings Quality

The company reported $10.55B of operating cash flow, a cash inflow that shows the cash generated by operations. Against net income, operating cash flow measured 1.23x, showing the relationship between accrual earnings and operating cash. Capital spending was $3.37B, absorbing part of the cash generated from operations before free cash flow. Relative to operating cash flow, capital expenditures measured 31.9%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $7.19B of positive free cash flow for the period. The free-cash-flow margin was 26.7%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 12.1% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.