MCD Q2 2018 Earnings Report — McDonald's Corporation Revenue & Financial Results | Market Cap Arena

McDonald's CorporationMCD

Q2 2018 Earnings

Reported August 2, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2018	Q1 2018	Q2 2017	QoQ Change	YoY Change
Revenue	$5.4B	$5.1B	$6.0B	4.2%	-11.5%
Op. Income	$2.3B	$2.1B	$2.3B	5.6%	-1.4%
Gross Margin	51.2%	49.2%	44.8%	2.0pp	6.4pp
Net Margin	27.9%	26.8%	23.1%	1.2pp	4.9pp
EPS (Diluted)	$1.90	$1.72	$1.70	10.5%	11.8%
Free Cash Flow	$728M	$1.1B	$845M	-33.4%	-13.9%

Revenue Flow

Item	Amount
REVENUE	$5.4B
Cost of Revenue	$2.6B
GROSS PROFIT	$2.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$542M
Other Expenses	-$65M
Operating Expenses	$477M
Cost & Expenses	$3.1B
OPERATING INCOME	$2.3B
Interest Income	$100.0K
Interest Expense	$240M
Other Income/Expenses	-$244M
INCOME BEFORE TAX	$2.0B
Income Tax Expense	$522M
Net Income from Continuing Ops	$1.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.5B
D&A	$365M
EBIT	$2.3B
EBITDA	$2.6B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$5.4B
Cost of Revenue	$2.6B
GROSS PROFIT	$2.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$542M
Other Expenses	-$65M
Operating Expenses	$477M
Cost & Expenses	$3.1B
OPERATING INCOME	$2.3B
Interest Income	$100.0K
Interest Expense	$240M
Other Income/Expenses	-$244M
INCOME BEFORE TAX	$2.0B
Income Tax Expense	$522M
Net Income from Continuing Ops	$1.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.5B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.5B
D&A	$365M
EBIT	$2.3B
EBITDA	$2.6B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.5B
Depreciation & Amortization	$365M
Stock-Based Compensation	$24M
Deferred Income Tax	$54M
Other Non-Cash Items	-$91M
Change in Working Capital	-$510M
OPERATING CASH FLOW	$1.3B
Capital Expenditure	-$611M
Acquisitions (Net)	$132M
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	-$11M
NET CASH FROM INVESTING	-$491M
Net Debt Issuance	$739M
Common Stock Repurchased	-$1.6B
Common Dividends Paid	-$786M
Other Financing Activities	$90M
NET CASH FROM FINANCING	-$1.6B
FREE CASH FLOW	$728M
Net Change in Cash	-$845M

Balance Sheet

Item	Amount
Cash & Equivalents	$1.6B
Short-Term Investments	$0
Net Receivables	$2.2B
Inventory	$50M
Other Current Assets	$0
TOTAL CURRENT ASSETS	$4.4B
PP&E (Net)	$22.4B
Goodwill	$2.3B
Intangible Assets	$0
Long-Term Investments	$1.1B
Tax Assets	$0
Other Non-Current Assets	$2.5B
TOTAL NON-CURRENT ASSETS	$28.4B
TOTAL ASSETS	$32.7B
Account Payables	$918M
Short-Term Debt	$292M
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$3.0B
Long-Term Debt	$30.7B
Deferred Revenue NC	$607M
Deferred Tax Liabilities	$1.2B
Other Non-Current Liabilities	$3.1B
TOTAL NON-CURRENT LIABILITIES	$35.6B
TOTAL LIABILITIES	$38.6B
Common Stock	$17M
Additional Paid-In Capital	$7.2B
Retained Earnings	$49.1B
Treasury Stock	-$59.7B
Accum. Other Comp. Income	-$2.4B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	-$5.9B
Minority Interest	$0
TOTAL EQUITY	-$5.9B
TOTAL LIABILITIES & EQUITY	$32.7B
Total Debt	$31.0B
Net Debt	$29.4B