MCDONALDS CORP SEC 10-Q Report

McDonald's Corp, a global leader in the fast-food industry, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's financial and operational performance, showcasing significant growth in key areas driven by strong sales in international markets and strategic business initiatives.

Financial Highlights

Total Revenues: $6,843 million, increased 5% from the prior year quarter, driven by positive sales performance in the International Operated Markets.

Operating Income: $3,232 million, increased 11% from the prior year quarter, reflecting sales-driven growth in Franchised margins across all segments.

Net Income: $2,253 million, increased 11% from the prior year quarter, with a positive impact from foreign currency translation.

Diluted EPS: $3.14, increased 12% from the prior year quarter, benefiting from higher sales-driven Franchised margins.

Total Revenues for Six Months Ended June 30, 2025: $12,799 million, increased 1% from the prior year period, with growth in International Operated Markets offset by lower Company-owned and operated sales in the U.S.

Operating Income for Six Months Ended June 30, 2025: $5,880 million, increased 4% from the prior year period, driven by sales-driven growth in Franchised margins.

Net Income for Six Months Ended June 30, 2025: $4,121 million, increased 4% from the prior year period, with a positive impact from foreign currency translation.

Diluted EPS for Six Months Ended June 30, 2025: $5.74, increased 5% from the prior year period, reflecting higher sales-driven Franchised margins.

Business Highlights

Revenue Segments

The company operates under three main segments: U.S., International Operated Markets, and International Developmental Licensed Markets & Corporate. The U.S. segment is 95% franchised, the International Operated Markets segment is 89% franchised, and the International Developmental Licensed Markets are 99% franchised.

Geographical Performance

The U.S. segment showed a 2.5% increase in comparable sales for the quarter, driven by positive check growth, while the six months saw a decrease of 0.5% due to negative guest counts. International Operated Markets experienced a 4.0% increase in comparable sales for the quarter, with positive sales in nearly all markets. The International Developmental Licensed Markets saw a 5.6% increase in comparable sales for the quarter, led by Japan.

Sales Units

As of June 30, 2025, the company had 44,113 restaurants worldwide, with 42,059 franchised and 2,054 company-owned and operated. The company plans to open about 2,200 new restaurants globally in 2025, contributing to over 4% new unit growth.

New Product Launches

The company plans to continue implementing the 'Best Burger' initiative to deliver hotter, juicier, tastier burgers to nearly all markets by the end of 2026. Additionally, the McCrispy sandwich is expected to be offered in nearly all major markets by the end of 2025.

Future Outlook

The company expects net restaurant unit expansion to contribute slightly over 2% to 2025 Systemwide sales growth. The operating margin for 2025 is expected to be in the mid-to-high 40% range. Capital expenditures for 2025 are projected to be between $3.0 and $3.2 billion, with a focus on new restaurant unit expansion.

SEC Filing: MCDONALDS CORP [ MCD ] - 10-Q - Aug. 06, 2025