McDonald's Corporation stock research
FY2026 Q1
McDonald's (MCD) Gross Margin — Quarter Ended Mar 31, 2026
Revenue decreased while cost of revenue increased, causing gross profit to decline and gross margin to weaken slightly. Gross margin narrowed by a small amount compared with the same quarter one year earlier because cost of revenue rose faster than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue decreased while cost of revenue increased, causing gross profit to decline and gross margin to weaken slightly. Gross margin narrowed by a small amount compared with the same quarter one year earlier because cost of revenue rose faster than revenue.
- The cost-of-revenue line was the primary observable driver; it increased despite lower revenue, directly compressing gross profit and margin.
- Compared with the prior quarter, revenue was lower and gross margin was stable in absolute terms, though gross profit data for the prior quarter is missing. Versus the same quarter a year ago, revenue was higher and gross profit was higher, while gross margin was essentially unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.6%
Gross profit
$5.8B
Revenue
$6.5B
Cost of revenue
$676.0M
Quarter-over-quarter change
-1.0 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, 2025 | $6.0B | $5.3B | $620.0M | 89.6% |
| Jun 30, 2025 | $6.8B | $6.2B | $654.0M | 90.4% |
| Sep 30, 2025 | $7.1B | $6.4B | $666.0M | 90.6% |
| Mar 31, 2026 | $6.5B | $5.8B | $676.0M | 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, 2025
-1.0 pts
Year-over-year change
Mar 31, 2025
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The cost-of-revenue line was the primary observable driver; it increased despite lower revenue, directly compressing gross profit and margin.
Compared with the prior quarter, revenue was lower and gross margin was stable in absolute terms, though gross profit data for the prior quarter is missing. Versus the same quarter a year ago, revenue was higher and gross profit was higher, while gross margin was essentially unchanged.
Monitor the trend in cost of revenue if revenue continues to change, as cost growth outpaced revenue growth year-over-year.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| McDonald's Corporation (MCD) | 89.6% |