Document

“Accelerating the Arches continues to be the right strategy as we focus on growing market share,” said Chairman and CEO Chris Kempczinski. “We’re playing to win, focusing on our customers with outstanding value, exciting menu innovation and culturally relevant marketing.”

•Consolidated operating income increased 2% (3% in constant currencies). Excluding $3 million of current year net charges, as well as prior year pre-tax charges of $138 million, consolidated operating income decreased 2% (2% in constant currencies).**

•Diluted earnings per share was flat at $2.80 (increased 1% in constant currencies). Excluding the current year net charges described above of $0.03 per share, diluted earnings per share was $2.83, a decrease of 4% (4% in constant currencies) when also excluding prior year charges.**

•Consolidated operating income increased 1% (1% in constant currencies). Results included $221 million of pre-tax restructuring charges associated with Accelerating the Organization and $70 million of pre-tax transaction costs and non-cash impairment charges, net of gains on associated property sales. Excluding these current year net charges, as well as prior year pre-tax charges of $362 million, consolidated operating income was flat (flat in constant currencies).**

•Diluted earnings per share was $11.39, a decrease of 1% (1% in constant currencies). Excluding the current year net charges described above of $0.33 per share, diluted earnings per share was $11.72, a decrease of 2% (1% in constant currencies) when also excluding prior year charges.**

•International Operated Markets: Slightly positive segment performance was driven by mixed results across the markets. Results reflected positive comparable sales in most markets, partly offset by negative comparable sales in some markets, led by the U.K.



	Quarters Ended December 31,								Years Ended December 31,
	2024		2023		Inc/ (Dec)		Inc/ (Dec) Excluding Currency Translation		2024		2023		Inc/ (Dec)		Inc/ (Dec) Excluding Currency Translation
Revenues	$	6,388	$	6,406	—	%	—	%	$	25,920	$	25,494	2	%	2	%
Operating income	2,868		2,802		2		3		11,712		11,647		1		1
Net income	2,017		2,039		(1)		—		8,223		8,469		(3)		(2)
Earnings per share-diluted	$	2.80	$	2.80	—	%	1	%	$	11.39	$	11.56	(1)	%	(1)	%

•Pre-tax charges of $74 million, or $0.10 per share, for the quarter and $221 million, or $0.25 per share, for the year, primarily related to restructuring charges associated with the Company's internal effort to modernize ways of working (Accelerating the Organization)

•Net pre-tax gains of $71 million, or $0.07 per share, for the quarter and net pre-tax charges of $70 million, or $0.08 per share, for the year, primarily consisted of property sale gains, transaction costs and non-cash impairment charges associated with the sale of McDonald's business in South Korea and transaction costs associated with the acquisition of McDonald's business in Israel

•Pre-tax charges of $66 million, or $0.07 per share, for the quarter and $290 million, or $0.30 per share, for the year, related to the Company's Accelerating the Arches growth strategy, including restructuring charges associated with Accelerating the Organization

Excluding the above items, operating income performance for both periods was primarily driven by lower Other operating income and lower Company-owned and operated margins, partly offset by higher sales-driven Franchised margins. Results for both periods reflected higher interest expense, lower non-operating income and a higher effective tax rate.


	Quarters Ended December 31,
	Net Income								Earnings per share - diluted
	2024		2023		Inc/ (Dec)		Inc/ (Dec) Excluding Currency Translation		2024		2023		Inc/ (Dec)		Inc/ (Dec) Excluding Currency Translation
GAAP	$	2,017	$	2,039	(1)	%	—	%	$	2.80	$	2.80	—	%	1	%
(Gains)/Charges	18		106						0.03		0.15
Non-GAAP	$	2,035	$	2,145	(5)	%	(5)	%	$	2.83	$	2.95	(4)	%	(4)	%


	Years Ended December 31,
	Net Income								Earnings per share - diluted
	2024		2023		Inc/ (Dec)		Inc/ (Dec) Excluding Currency Translation		2024		2023		Inc/ (Dec)		Inc/ (Dec) Excluding Currency Translation
GAAP	$	8,223	$	8,469	(3)	%	(2)	%	$	11.39	$	11.56	(1)	%	(1)	%
(Gains)/Charges	236		274						0.33		0.38
Non-GAAP	$	8,459	$	8,742	(3)	%	(3)	%	$	11.72	$	11.94	(2)	%	(1)	%

Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year results at prior year average exchange rates. Management reviews and analyzes business results excluding the effect of foreign currency translation, impairment and other charges and gains, as well as material regulatory and other income tax impacts, and bases incentive compensation plans on these results because the Company believes this better represents underlying business trends.

Comparable sales and comparable guest counts are compared to the same period in the prior year and represent sales and transactions, respectively, at all restaurants, whether owned and operated by the Company or by franchisees, in operation at least thirteen months including those temporarily closed. Some of the reasons restaurants may be temporarily closed include reimaging or remodeling, rebuilding, road construction, natural disasters, pandemics or acts of war, terrorism or other hostilities. Comparable sales exclude the impact of currency translation and the sales of any market considered hyperinflationary (generally identified as those markets whose cumulative inflation rate over a three-year period exceeds 100%), which management believes more accurately reflects the underlying business trends. Comparable sales are driven by changes in guest counts and average check, the latter of which is affected by changes in pricing and product mix.

Systemwide sales include sales at all restaurants, whether owned and operated by the Company or by franchisees. Systemwide sales to loyalty members is comprised of all sales to customers who self-identify as a loyalty member when transacting with both Company-owned and operated and franchised restaurants. Systemwide sales to loyalty members are measured across 60 markets with loyalty programs. Systemwide sales to loyalty members represents an aggregation of the prior four quarters of sales to loyalty members active in the last 90 days of the respective quarter. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company's financial performance because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The Company's revenues consist of sales by Company-owned and operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and affiliates. Changes in Systemwide sales are primarily driven by comparable sales and net restaurant unit expansion.

Free cash flow, defined as cash provided by operations less capital expenditures, and free cash flow conversion rate, defined as free cash flow divided by net income, are measures reviewed by management in order to evaluate the Company’s ability to convert net profits into cash resources, after reinvesting in the core business, that can be used to pursue opportunities to enhance shareholder value.

McDonald’s Corporation will broadcast its investor earnings conference call live over the Internet at 7:30 a.m. (Central Time) on February 10, 2025. A link to the live webcast will be available at www.investor.mcdonalds.com. There will also be an archived webcast available for a limited time thereafter.

For important news and information regarding McDonald's, including the timing of future investor conferences and earnings calls, visit the Investor Relations section of the Company's Internet home page at www.investor.mcdonalds.com. McDonald's uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.

This release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from expectations are detailed in the Company’s filings with the Securities and Exchange Commission, including the risk factors discussed in Exhibit 99.2 to the Company’s Form 8-K filing on February 10, 2025. The Company undertakes no obligation to update such forward-looking statements, except as may otherwise be required by law.


Dollars and shares in millions, except per share data
Quarters Ended December 31,	2024		2023		Inc/ (Dec)
Revenues
Revenues from franchised restaurants	$	3,958	$	3,869	$	90	2	%
Sales by Company-owned and operated restaurants	2,310		2,474		(164)		(7)
Other revenues	120		63		56		88

TOTAL REVENUES	6,388		6,406		(19)		—

Operating costs and expenses
Franchised restaurants-occupancy expenses	635		633		2		—
Company-owned and operated restaurant expenses	1,977		2,075		(98)		(5)
Other restaurant expenses	98		45		54		n/m
Selling, general & administrative expenses
Depreciation and amortization	136		91		45		50
Other	664		731		(67)		(9)
Other operating (income) expense, net	10		31		(21)		(66)
Total operating costs and expenses	3,519		3,604		(85)		(2)

OPERATING INCOME	2,868		2,802		66		2

Interest expense	380		360		20		6
Nonoperating (income) expense, net	(49)		(73)		24		(33)

Income before provision for income taxes	2,537		2,515		22		1
Provision for income taxes	521		476		45		9

NET INCOME	$	2,017	$	2,039	$	(22)	(1)	%

EARNINGS PER SHARE-DILUTED	$	2.80	$	2.80	$	—	—	%

Weighted average shares outstanding-diluted	719.7		727.8		(8.1)		(1)	%


Dollars and shares in millions, except per share data
Years Ended December 31,	2024		2023		Inc/ (Dec)
Revenues
Revenues from franchised restaurants	$	15,715	$	15,437	$	278	2	%
Sales by Company-owned and operated restaurants	9,782		9,742		40		—
Other revenues	423		316		108		34

TOTAL REVENUES	25,920		25,494		426		2

Operating costs and expenses
Franchised restaurants-occupancy expenses	2,536		2,475		62		2
Company-owned and operated restaurant expenses	8,334		8,224		110		1
Other restaurant expenses	339		232		107		46
Selling, general & administrative expenses
Depreciation and amortization	447		382		65		17
Other	2,412		2,435		(24)		(1)
Other operating (income) expense, net	139		99		41		41
Total operating costs and expenses	14,208		13,847		361		3

OPERATING INCOME	11,712		11,647		65		1

Interest expense	1,506		1,361		146		11
Nonoperating (income) expense, net	(139)		(236)		97		(41)

Income before provision for income taxes	10,345		10,522		(178)		(2)
Provision for income taxes	2,121		2,053		68		3

NET INCOME	$	8,223	$	8,469	$	(245)	(3)	%

EARNINGS PER SHARE-DILUTED	$	11.39	$	11.56	$	(0.17)	(1)	%

Weighted average shares outstanding-diluted	721.9		732.3		(10.4)		(1)	%


In millions	December 31,	2024		2023
Current assets		—		—
Cash and equivalents		$	1,085	$	4,579
Accounts and notes receivable		2,383		2,488
Other current assets		1,130		919

TOTAL CURRENT ASSETS		4,599		7,986

TOTAL OTHER ASSETS		11,950		9,738

LEASE RIGHT-OF-USE ASSET, NET		13,339		13,514

NET PROPERTY AND EQUIPMENT		25,295		24,908

TOTAL ASSETS		$	55,182	$	56,147

TOTAL CURRENT LIABILITIES		$	3,861	$	6,859

Long-term debt		38,424		37,153
Long-term lease liability		12,888		13,058



Other long-term liabilities		1,893		2,103
Deferred income taxes		1,914		1,681

TOTAL SHAREHOLDERS' EQUITY (DEFICIT)		(3,797)		(4,707)

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)		$	55,182	$	56,147


In millions	Years ended December 31,	2024		2023
Operating activities
Net income		$	8,223	$	8,469





Changes in working capital items		(437)		(108)






Other		1,660		1,251

CASH PROVIDED BY OPERATIONS		9,447		9,612

Investing activities
Capital expenditures		(2,775)		(2,357)





Sales and purchases of restaurant and other businesses and property sales		(2,073)		(151)

Other		(498)		(676)

CASH USED FOR INVESTING ACTIVITIES		(5,346)		(3,185)

Financing activities



Net short-term borrowings and long-term financing issuances and payments		(72)		2,993
Treasury stock purchases		(2,824)		(3,054)
Common stock dividends		(4,870)		(4,533)



Proceeds from stock option exercises and other		271		220

CASH USED FOR FINANCING ACTIVITIES		(7,495)		(4,374)

EFFECT OF EXCHANGE RATES ON CASH AND EQUIVALENTS		(101)		(58)

CASH AND EQUIVALENTS INCREASE (DECREASE)		(3,494)		1,996


Cash and equivalents at beginning of year		4,579		2,584

CASH AND EQUIVALENTS AT END OF YEAR		$	1,085	$	4,579

Supplemental cash flow disclosures
Cash provided by operations		$	9,447	$	9,612
Less: Capital expenditures		(2,775)		(2,357)

FREE CASH FLOW		$	6,672	$	7,255


FOR IMMEDIATE RELEASE			FOR MORE INFORMATION CONTACT:
2/10/2025			Investors: Dexter Congbalay, investor.relations@us.mcd.com
			Media: Lauren Altmin, lauren.altmin@us.mcd.com


	Increase/(Decrease)
	Quarters Ended December 31,
	2024		2023
U.S.	(1.4)	%	4.3	%
International Operated Markets	0.1		4.4
International Developmental Licensed Markets	4.1		0.7
Total Company	0.4	%	3.4	%