McDonald's Corporation stock research
FY2025 Q2
McDonald's (MCD) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose slightly. Gross margin improved sequentially and was stable year over year, reflecting a favorable relationship between revenue growth and cost control.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose slightly. Gross margin improved sequentially and was stable year over year, reflecting a favorable relationship between revenue growth and cost control.
- The strongest observable margin driver is the sequential improvement in gross margin, which rose from the prior quarter as revenue growth outpaced the increase in cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
90.4%
Gross profit
$6.2B
Revenue
$6.8B
Cost of revenue
$654.0M
Quarter-over-quarter change
+0.9 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $6.8B | $6.2B | $654.0M | 90.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.9 pts
Year-over-year change
Jun 30, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential improvement in gross margin, which rose from the prior quarter as revenue growth outpaced the increase in cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin was stable.
Monitor the trend in cost of revenue relative to revenue, as its slight increase in both comparisons could pressure gross margin if revenue growth slows.