MCD Q3 2016 Earnings Report — McDonald's Corporation Revenue & Financial Results | Market Cap Arena

McDonald's CorporationMCD

Q3 2016 Earnings

Reported November 3, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2016	Q2 2016	Q3 2015	QoQ Change	YoY Change
Revenue	$6.4B	$6.3B	—	2.5%	—
Op. Income	$2.1B	$1.9B	—	15.0%	—
Gross Margin	42.8%	41.3%	—	1.5pp	—
Net Margin	19.9%	17.4%	—	2.4pp	—
EPS (Diluted)	$1.50	$1.25	—	20.0%	—
Free Cash Flow	$1.8B	$896M	—	106.0%	—

Revenue Flow

Item	Amount
REVENUE	$6.4B
Cost of Revenue	$3.7B
GROSS PROFIT	$2.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$583M
Other Expenses	$27M
Operating Expenses	$610M
Cost & Expenses	$4.3B
OPERATING INCOME	$2.1B
Interest Income	$0
Interest Expense	$222M
Other Income/Expenses	-$233M
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$629M
Net Income from Continuing Ops	$1.3B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.3B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.3B
D&A	$371M
EBIT	$2.1B
EBITDA	$2.5B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$6.4B
Cost of Revenue	$3.7B
GROSS PROFIT	$2.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$583M
Other Expenses	$27M
Operating Expenses	$610M
Cost & Expenses	$4.3B
OPERATING INCOME	$2.1B
Interest Income	$0
Interest Expense	$222M
Other Income/Expenses	-$233M
INCOME BEFORE TAX	$1.9B
Income Tax Expense	$629M
Net Income from Continuing Ops	$1.3B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.3B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.3B
D&A	$371M
EBIT	$2.1B
EBITDA	$2.5B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.3B
Depreciation & Amortization	$371M
Stock-Based Compensation	$34M
Deferred Income Tax	-$216M
Other Non-Cash Items	$3M
Change in Working Capital	$784M
OPERATING CASH FLOW	$2.3B
Capital Expenditure	-$405M
Acquisitions (Net)	$104M
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	-$50M
NET CASH FROM INVESTING	-$351M
Net Debt Issuance	-$5M
Common Stock Repurchased	-$2.0B
Common Dividends Paid	-$745M
Other Financing Activities	-$56M
NET CASH FROM FINANCING	-$2.8B
FREE CASH FLOW	$1.8B
Net Change in Cash	-$861M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.3B
Short-Term Investments	$0
Net Receivables	$1.3B
Inventory	$91M
Other Current Assets	$0
TOTAL CURRENT ASSETS	$4.3B
PP&E (Net)	$23.0B
Goodwill	$2.5B
Intangible Assets	$0
Long-Term Investments	$878M
Tax Assets	$0
Other Non-Current Assets	$1.8B
TOTAL NON-CURRENT ASSETS	$28.2B
TOTAL ASSETS	$32.5B
Account Payables	$852M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$4.5B
Long-Term Debt	$26.0B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$1.4B
Other Non-Current Liabilities	$2.2B
TOTAL NON-CURRENT LIABILITIES	$29.6B
TOTAL LIABILITIES	$34.1B
Common Stock	$17M
Additional Paid-In Capital	$6.7B
Retained Earnings	$45.0B
Treasury Stock	-$50.8B
Accum. Other Comp. Income	-$2.6B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	-$1.6B
Minority Interest	$0
TOTAL EQUITY	-$1.6B
TOTAL LIABILITIES & EQUITY	$32.5B
Total Debt	$26.0B
Net Debt	$23.7B