MCD Q2 2019 Earnings Report — McDonald's Corporation Revenue & Financial Results | Market Cap Arena

McDonald's CorporationMCD

Q2 2019 Earnings

Reported August 6, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2019	Q1 2019	Q2 2018	QoQ Change	YoY Change
Revenue	$5.4B	$5.0B	$5.4B	7.7%	1.0%
Op. Income	$2.3B	$2.1B	$2.3B	8.6%	0.5%
Gross Margin	52.5%	50.8%	51.2%	1.8pp	1.4pp
Net Margin	28.0%	26.4%	27.9%	1.6pp	0.1pp
EPS (Diluted)	$1.97	$1.72	$1.90	14.5%	3.7%
Free Cash Flow	$1.3B	$1.5B	$728M	-11.8%	82.5%

Revenue Flow

Item	Amount
REVENUE	$5.4B
Cost of Revenue	$2.6B
GROSS PROFIT	$2.8B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$470M
Other Expenses	$99M
Operating Expenses	$569M
Cost & Expenses	$3.1B
OPERATING INCOME	$2.3B
Interest Income	$11M
Interest Expense	$287M
Other Income/Expenses	-$266M
INCOME BEFORE TAX	$2.0B
Income Tax Expense	$491M
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	$398M
EBIT	$2.3B
EBITDA	$2.7B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$5.4B
Cost of Revenue	$2.6B
GROSS PROFIT	$2.8B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$470M
Other Expenses	$99M
Operating Expenses	$569M
Cost & Expenses	$3.1B
OPERATING INCOME	$2.3B
Interest Income	$11M
Interest Expense	$287M
Other Income/Expenses	-$266M
INCOME BEFORE TAX	$2.0B
Income Tax Expense	$491M
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	$398M
EBIT	$2.3B
EBITDA	$2.7B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.5B
Depreciation & Amortization	$398M
Stock-Based Compensation	$29M
Deferred Income Tax	$58M
Other Non-Cash Items	$15M
Change in Working Capital	-$92M
OPERATING CASH FLOW	$1.9B
Capital Expenditure	-$598M
Acquisitions (Net)	-$316M
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	$14M
NET CASH FROM INVESTING	-$900M
Net Debt Issuance	-$386M
Common Stock Repurchased	-$1.1B
Common Dividends Paid	-$883M
Other Financing Activities	$140M
NET CASH FROM FINANCING	-$2.2B
FREE CASH FLOW	$1.3B
Net Change in Cash	-$1.2B

Balance Sheet

Item	Amount
Cash & Equivalents	$1.1B
Short-Term Investments	$0
Net Receivables	$2.1B
Inventory	$44M
Other Current Assets	$0
TOTAL CURRENT ASSETS	$3.9B
PP&E (Net)	$36.0B
Goodwill	$2.6B
Intangible Assets	$0
Long-Term Investments	$1.2B
Tax Assets	$0
Other Non-Current Assets	$2.4B
TOTAL NON-CURRENT ASSETS	$42.3B
TOTAL ASSETS	$46.2B
Account Payables	$797M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$3.2B
Long-Term Debt	$32.7B
Deferred Revenue NC	$640M
Deferred Tax Liabilities	$1.4B
Other Non-Current Liabilities	$3.2B
TOTAL NON-CURRENT LIABILITIES	$49.8B
TOTAL LIABILITIES	$53.0B
Common Stock	$17M
Additional Paid-In Capital	$7.5B
Retained Earnings	$51.6B
Treasury Stock	-$63.4B
Accum. Other Comp. Income	-$2.5B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	-$6.8B
Minority Interest	$0
TOTAL EQUITY	-$6.8B
TOTAL LIABILITIES & EQUITY	$46.2B
Total Debt	$45.3B
Net Debt	$44.2B