McDonald's Corporation stock research
FY2025 Q1
McDonald's (MCD) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased, while cost of revenue declined at a slightly faster pace, leading gross profit to decline but gross margin to slightly improve. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was roughly stable, and gross margin weakened marginally.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased, while cost of revenue declined at a slightly faster pace, leading gross profit to decline but gross margin to slightly improve. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was roughly stable, and gross margin weakened marginally.
- Cost control, as measured by cost of revenue falling more than revenue, was the strongest observable margin driver in the current quarter.
- Compared to the previous quarter, revenue decreased and cost of revenue was not available for comparison; gross profit and gross margin were also not available. Against the same quarter a year earlier, revenue, gross profit, and cost of revenue were lower, while gross margin weakened slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.6%
Gross profit
$5.3B
Revenue
$6.0B
Cost of revenue
$620.0M
Quarter-over-quarter change
-1.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $6.0B | $5.3B | $620.0M | 89.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.0 pts
Year-over-year change
Mar 31, 2024
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost control, as measured by cost of revenue falling more than revenue, was the strongest observable margin driver in the current quarter.
Compared to the previous quarter, revenue decreased and cost of revenue was not available for comparison; gross profit and gross margin were also not available. Against the same quarter a year earlier, revenue, gross profit, and cost of revenue were lower, while gross margin weakened slightly.
Monitor both revenue trends and cost of revenue trajectory to assess whether the slight gross margin improvement can be sustained.