McDonald's Corporation stock research
FY2024 Q2
McDonald's (MCD) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit were both higher than the prior quarter, while cost of revenue was nearly flat, leading to an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were essentially unchanged, but cost of revenue was slightly higher, resulting in a slightly weakened gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit were both higher than the prior quarter, while cost of revenue was nearly flat, leading to an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were essentially unchanged, but cost of revenue was slightly higher, resulting in a slightly weakened gross margin.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue increased from the prior quarter while cost of revenue remained nearly stable, which directly supported gross profit growth and margin improvement.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
90.3%
Gross profit
$5.9B
Revenue
$6.5B
Cost of revenue
$629.0M
Quarter-over-quarter change
+0.5 pts
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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $6.5B | $5.9B | $629.0M | 90.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.5 pts
Year-over-year change
Jun 30, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue increased from the prior quarter while cost of revenue remained nearly stable, which directly supported gross profit growth and margin improvement.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened slightly.
Monitor the trend in cost of revenue, as it increased year-over-year while revenue remained flat, which pressured gross margin.