McDonald's Corporation stock research
FY2024 Q1
McDonald's (MCD) Gross Margin — Quarter Ended Mar 31, 2024
Revenue, gross profit, and cost of revenue all increased compared to the same quarter last year, with gross margin edging lower. Revenue declined from the immediately preceding quarter, for which gross profit and cost of revenue data are not available.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue, gross profit, and cost of revenue all increased compared to the same quarter last year, with gross margin edging lower. Revenue declined from the immediately preceding quarter, for which gross profit and cost of revenue data are not available.
- The gross margin remained high, supported by a cost of revenue that is a small fraction of revenue. The slight decline from the prior year reflects that revenue grew faster than gross profit.
- Compared to the prior quarter, revenue was lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly weaker.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.8%
Gross profit
$5.5B
Revenue
$6.2B
Cost of revenue
$627.0M
Quarter-over-quarter change
-0.8 pts
Year-over-year change
-0.0 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% |
| Mar 31, 2024 | $6.2B | $5.5B | $627.0M | 89.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.8 pts
Year-over-year change
Mar 31, 2023
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin remained high, supported by a cost of revenue that is a small fraction of revenue. The slight decline from the prior year reflects that revenue grew faster than gross profit.
Compared to the prior quarter, revenue was lower. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly weaker.
Monitor the trajectory of cost of revenue relative to revenue, as small changes can affect the already high gross margin.