McDonald's Corporation stock research
FY2023 Q3
McDonald's (MCD) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased and gross profit also increased, while cost of revenue rose modestly. As a result, gross margin improved compared to both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue increased and gross profit also increased, while cost of revenue rose modestly. As a result, gross margin improved compared to both the prior quarter and the same quarter last year.
- Revenue growth exceeded the increase in cost of revenue, contributing to a higher gross margin.
- Sequentially, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin rose. Year over year, revenue and gross profit were higher, cost of revenue was higher, and gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
90.7%
Gross profit
$6.1B
Revenue
$6.7B
Cost of revenue
$625.0M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+0.7 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% |
| Jun 30, 2023 | $6.5B | $5.9B | $618.0M | 90.5% |
| Sep 30, 2023 | $6.7B | $6.1B | $625.0M | 90.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.2 pts
Year-over-year change
Sep 30, 2022
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue growth exceeded the increase in cost of revenue, contributing to a higher gross margin.
Sequentially, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin rose. Year over year, revenue and gross profit were higher, cost of revenue was higher, and gross margin also improved.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate influences gross margin.