MCD Q1 2018 Earnings Report — McDonald's Corporation Revenue & Financial Results | Market Cap Arena

McDonald's CorporationMCD

Q1 2018 Earnings

Reported May 8, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q1 2018	Q4 2017	Q1 2017	QoQ Change	YoY Change
Revenue	$5.1B	$5.3B	$5.7B	-3.8%	-9.5%
Op. Income	$2.1B	$2.1B	$2.0B	-0.1%	5.4%
Gross Margin	49.2%	49.9%	42.8%	-0.7pp	6.4pp
Net Margin	26.8%	13.1%	21.4%	13.7pp	5.4pp
EPS (Diluted)	$1.72	$0.87	$1.47	97.7%	17.0%
Free Cash Flow	$1.1B	$469M	$1.1B	133.0%	-2.1%

Revenue Flow

Item	Amount
REVENUE	$5.1B
Cost of Revenue	$2.6B
GROSS PROFIT	$2.5B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$533M
Other Expenses	-$149M
Operating Expenses	$385M
Cost & Expenses	$3.0B
OPERATING INCOME	$2.1B
Interest Income	$6M
Interest Expense	$237M
Other Income/Expenses	-$255M
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$513M
Net Income from Continuing Ops	$1.4B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.4B
D&A	$363M
EBIT	$2.1B
EBITDA	$2.5B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$5.1B
Cost of Revenue	$2.6B
GROSS PROFIT	$2.5B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$533M
Other Expenses	-$149M
Operating Expenses	$385M
Cost & Expenses	$3.0B
OPERATING INCOME	$2.1B
Interest Income	$6M
Interest Expense	$237M
Other Income/Expenses	-$255M
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$513M
Net Income from Continuing Ops	$1.4B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.4B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.4B
D&A	$363M
EBIT	$2.1B
EBITDA	$2.5B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.4B
Depreciation & Amortization	$363M
Stock-Based Compensation	$40M
Deferred Income Tax	$29M
Other Non-Cash Items	-$55M
Change in Working Capital	-$107M
OPERATING CASH FLOW	$1.6B
Capital Expenditure	-$553M
Acquisitions (Net)	$163M
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	$31M
NET CASH FROM INVESTING	-$359M
Net Debt Issuance	$498M
Common Stock Repurchased	-$1.6B
Common Dividends Paid	-$798M
Other Financing Activities	$626M
NET CASH FROM FINANCING	-$1.3B
FREE CASH FLOW	$1.1B
Net Change in Cash	$4M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.5B
Short-Term Investments	$0
Net Receivables	$2.0B
Inventory	$54M
Other Current Assets	$0
TOTAL CURRENT ASSETS	$4.9B
PP&E (Net)	$22.7B
Goodwill	$2.4B
Intangible Assets	$0
Long-Term Investments	$1.1B
Tax Assets	$0
Other Non-Current Assets	$2.6B
TOTAL NON-CURRENT ASSETS	$28.8B
TOTAL ASSETS	$33.7B
Account Payables	$780M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$2.8B
Long-Term Debt	$30.9B
Deferred Revenue NC	$607M
Deferred Tax Liabilities	$980M
Other Non-Current Liabilities	$3.2B
TOTAL NON-CURRENT LIABILITIES	$35.6B
TOTAL LIABILITIES	$38.4B
Common Stock	$17M
Additional Paid-In Capital	$7.1B
Retained Earnings	$48.4B
Treasury Stock	-$58.1B
Accum. Other Comp. Income	-$2.1B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	-$4.7B
Minority Interest	$0
TOTAL EQUITY	-$4.7B
TOTAL LIABILITIES & EQUITY	$33.7B
Total Debt	$30.9B
Net Debt	$28.4B