McDonald's Corporation stock research
FY2023 Q1
McDonald's (MCD) Gross Margin — Quarter Ended Mar 31, 2023
Revenue remained at the same level as the prior quarter and increased from the same quarter last year. Gross profit and gross margin both improved year-over-year, with cost of revenue increasing at a slower rate than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue remained at the same level as the prior quarter and increased from the same quarter last year. Gross profit and gross margin both improved year-over-year, with cost of revenue increasing at a slower rate than revenue.
- Revenue growth outpaced the increase in cost of revenue compared to the same quarter last year, resulting in a higher gross profit and an expanded gross margin.
- Compared to the immediately preceding quarter, revenue was unchanged. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin improved slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.9%
Gross profit
$5.3B
Revenue
$5.9B
Cost of revenue
$598.0M
Quarter-over-quarter change
n/a
Year-over-year change
+0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $5.9B | $5.3B | $598.0M | 89.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue growth outpaced the increase in cost of revenue compared to the same quarter last year, resulting in a higher gross profit and an expanded gross margin.
Compared to the immediately preceding quarter, revenue was unchanged. Compared to the same quarter one year earlier, revenue and gross profit were higher, while gross margin improved slightly.
Monitor the relationship between revenue and cost of revenue changes to assess whether the gross margin expansion can be sustained.