MCD Q3 2017 Earnings Report — McDonald's Corporation Revenue & Financial Results | Market Cap Arena

McDonald's CorporationMCD

Q3 2017 Earnings

Reported November 2, 2017

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2017	Q2 2017	Q3 2016	QoQ Change	YoY Change
Revenue	$5.8B	$6.0B	$6.4B	-4.9%	-10.4%
Op. Income	$3.1B	$2.3B	$2.1B	34.2%	44.1%
Gross Margin	49.0%	44.8%	42.8%	4.2pp	6.2pp
Net Margin	32.7%	23.1%	19.9%	9.7pp	12.9pp
EPS (Diluted)	$2.32	$1.70	$1.50	36.5%	54.7%
Free Cash Flow	$1.3B	$845M	$1.8B	50.1%	-31.3%

Revenue Flow

Item	Amount
REVENUE	$5.8B
Cost of Revenue	$2.9B
GROSS PROFIT	$2.8B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$567M
Other Expenses	-$829M
Operating Expenses	-$262M
Cost & Expenses	$2.7B
OPERATING INCOME	$3.1B
Interest Income	$7M
Interest Expense	$237M
Other Income/Expenses	-$260M
INCOME BEFORE TAX	$2.8B
Income Tax Expense	$936M
Net Income from Continuing Ops	$1.9B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.9B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.9B
D&A	$356M
EBIT	$3.1B
EBITDA	$3.4B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$5.8B
Cost of Revenue	$2.9B
GROSS PROFIT	$2.8B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$567M
Other Expenses	-$829M
Operating Expenses	-$262M
Cost & Expenses	$2.7B
OPERATING INCOME	$3.1B
Interest Income	$7M
Interest Expense	$237M
Other Income/Expenses	-$260M
INCOME BEFORE TAX	$2.8B
Income Tax Expense	$936M
Net Income from Continuing Ops	$1.9B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.9B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.9B
D&A	$356M
EBIT	$3.1B
EBITDA	$3.4B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.9B
Depreciation & Amortization	$356M
Stock-Based Compensation	$40M
Deferred Income Tax	$225M
Other Non-Cash Items	-$944M
Change in Working Capital	$125M
OPERATING CASH FLOW	$1.7B
Capital Expenditure	-$417M
Acquisitions (Net)	$1.6B
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	$14M
NET CASH FROM INVESTING	$1.2B
Net Debt Issuance	-$59M
Common Stock Repurchased	-$2.1B
Common Dividends Paid	-$755M
Other Financing Activities	$86M
NET CASH FROM FINANCING	-$2.8B
FREE CASH FLOW	$1.3B
Net Change in Cash	$279M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.7B
Short-Term Investments	$0
Net Receivables	$1.6B
Inventory	$54M
Other Current Assets	$0
TOTAL CURRENT ASSETS	$4.8B
PP&E (Net)	$22.0B
Goodwill	$2.4B
Intangible Assets	$0
Long-Term Investments	$1000M
Tax Assets	$0
Other Non-Current Assets	$2.4B
TOTAL NON-CURRENT ASSETS	$27.8B
TOTAL ASSETS	$32.6B
Account Payables	$685M
Short-Term Debt	$216M
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$3.7B
Long-Term Debt	$28.4B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$1.6B
Other Non-Current Liabilities	$2.3B
TOTAL NON-CURRENT LIABILITIES	$32.3B
TOTAL LIABILITIES	$36.0B
Common Stock	$17M
Additional Paid-In Capital	$7.0B
Retained Earnings	$47.6B
Treasury Stock	-$55.9B
Accum. Other Comp. Income	-$2.2B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	-$3.5B
Minority Interest	$0
TOTAL EQUITY	-$3.5B
TOTAL LIABILITIES & EQUITY	$32.6B
Total Debt	$28.6B
Net Debt	$25.9B