McDonald's Corporation stock research
FY2024 Q3
McDonald's (MCD) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both rose compared with the prior quarter and the year-ago quarter. Gross margin was slightly higher than the prior quarter but slightly lower than the same quarter last year, reflecting a mixed trend.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both rose compared with the prior quarter and the year-ago quarter. Gross margin was slightly higher than the prior quarter but slightly lower than the same quarter last year, reflecting a mixed trend.
- The strongest observable driver of gross margin was the relationship between revenue growth and cost of revenue, as revenue increased more than cost of revenue on a sequential basis.
- Compared with the immediately preceding quarter, gross margin improved. Compared with 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
90.6%
Gross profit
$6.2B
Revenue
$6.9B
Cost of revenue
$646.0M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $6.9B | $6.2B | $646.0M | 90.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.3 pts
Year-over-year change
Sep 30, 2023
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin was the relationship between revenue growth and cost of revenue, as revenue increased more than cost of revenue on a sequential basis.
Compared with the immediately preceding quarter, gross margin improved. Compared with the same quarter one year earlier, gross margin weakened slightly.
Monitor the trajectory of cost of revenue relative to revenue, as cost of revenue grew sequentially.