How does McDonald's (MCD) make money?

McDonald's (MCD) generates revenue primarily from High-Growth Markets, which accounted for 51.2% of total revenue in TTM through Q1 2026. The company reported $27.45B in revenue and converted 31.6% of it into net profit, equivalent to roughly $8.68B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of McDonald's (MCD)?

McDonald's (MCD) reported a gross profit margin of 57.4% in TTM through Q1 2026, equivalent to $15.74B in gross profit on $27.45B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of McDonald's (MCD)?

McDonald's (MCD) reported an operating profit margin of 46% in TTM through Q1 2026, equivalent to $12.63B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of McDonald's (MCD)?

McDonald's (MCD) reported a net profit margin of 31.6% in TTM through Q1 2026, equivalent to $8.68B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is McDonald's (MCD) profitable?

Yes. McDonald's (MCD) reported $8.68B in net income for TTM through Q1 2026, with a net profit margin of 31.6%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does McDonald's (MCD) spend on capital expenditures?

McDonald's (MCD) spent $3.50B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 12.7% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does McDonald's (MCD) generate?

McDonald's (MCD) generated $7.04B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 25.6%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of McDonald's (MCD)?

McDonald's (MCD) had an effective tax rate of 21.9% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of McDonald's (MCD)?

McDonald's (MCD) reports revenue across 3 reportable product segments, led by High-Growth Markets at 51.2% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does McDonald's (MCD) generate most of its revenue?

International Operated Markets is the largest geographic market for McDonald's (MCD), accounting for 51.2% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How McDonald's Makes Money: 2026 Visual Revenue Map

McDonald's (MCD) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 7, 2026).

McDonald's (MCD) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for McDonald's (MCD) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
High-Growth Markets	$14.04B	51.2%
UNITED STATES	$10.91B	39.8%
International Developmental Licensed Markets and Corporate	$2.49B	9.1%
Total	$27.45B	100%

High-Growth Markets$14.04B
UNITED STATES$10.91B
International Developmental Licensed Markets and Corporate$2.49B
Total$27.45B

McDonald's (MCD) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for McDonald's (MCD), TTM through Q1 2026
Region	Revenue (USD)	% of total
International Operated Markets	$14.04B	51.2%
UNITED STATES	$10.91B	39.8%
International Developmental Licensed Markets and Corporate	$2.49B	9.1%
Total	$27.45B	100%

International Operated Markets
UNITED STATES
International Developmental Licensed Markets and Corporate
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, McDonald's (MCD) reports revenue across 3 operating segments; the largest segment was High-Growth Markets at 51.2%, followed by UNITED STATES (39.8%) and International Developmental Licensed Markets and Corporate (9.1%). Separately, by end-market geography, International Operated Markets accounted for 51.2% of revenue, followed by UNITED STATES (39.8%) and International Developmental Licensed Markets and Corporate (9.1%).

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McDonald's (MCD) Key Financials

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