MCD Q3 2018 Earnings Report — McDonald's Corporation Revenue & Financial Results | Market Cap Arena

McDonald's CorporationMCD

Q3 2018 Earnings

Reported November 1, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2018	Q2 2018	Q3 2017	QoQ Change	YoY Change
Revenue	$5.4B	$5.4B	$5.8B	0.3%	-6.7%
Op. Income	$2.4B	$2.3B	$3.1B	6.9%	-21.5%
Gross Margin	52.6%	51.2%	49.0%	1.4pp	3.6pp
Net Margin	30.5%	27.9%	32.7%	2.5pp	-2.2pp
EPS (Diluted)	$2.10	$1.90	$2.32	10.5%	-9.5%
Free Cash Flow	$1.8B	$728M	$1.3B	142.9%	39.4%

Revenue Flow

Item	Amount
REVENUE	$5.4B
Cost of Revenue	$2.5B
GROSS PROFIT	$2.8B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$515M
Other Expenses	-$111M
Operating Expenses	$404M
Cost & Expenses	$3.0B
OPERATING INCOME	$2.4B
Interest Income	$0
Interest Expense	$251M
Other Income/Expenses	-$259M
INCOME BEFORE TAX	$2.2B
Income Tax Expense	$521M
Net Income from Continuing Ops	$1.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.6B
D&A	$375M
EBIT	$2.4B
EBITDA	$2.8B
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$5.4B
Cost of Revenue	$2.5B
GROSS PROFIT	$2.8B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$515M
Other Expenses	-$111M
Operating Expenses	$404M
Cost & Expenses	$3.0B
OPERATING INCOME	$2.4B
Interest Income	$0
Interest Expense	$251M
Other Income/Expenses	-$259M
INCOME BEFORE TAX	$2.2B
Income Tax Expense	$521M
Net Income from Continuing Ops	$1.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.6B
D&A	$375M
EBIT	$2.4B
EBITDA	$2.8B
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$1.6B
Depreciation & Amortization	$375M
Stock-Based Compensation	$36M
Deferred Income Tax	$31M
Other Non-Cash Items	-$53M
Change in Working Capital	$444M
OPERATING CASH FLOW	$2.5B
Capital Expenditure	-$704M
Acquisitions (Net)	$69M
Purchases of Investments	$0
Sales/Maturities of Investments	$0
Other Investing Activities	-$87M
NET CASH FROM INVESTING	-$721M
Net Debt Issuance	$989M
Common Stock Repurchased	-$1.0B
Common Dividends Paid	-$780M
Other Financing Activities	$64M
NET CASH FROM FINANCING	-$768M
FREE CASH FLOW	$1.8B
Net Change in Cash	$951M

Balance Sheet

Item	Amount
Cash & Equivalents	$2.6B
Short-Term Investments	$0
Net Receivables	$2.3B
Inventory	$42M
Other Current Assets	$0
TOTAL CURRENT ASSETS	$5.6B
PP&E (Net)	$22.6B
Goodwill	$2.3B
Intangible Assets	$0
Long-Term Investments	$1.1B
Tax Assets	$0
Other Non-Current Assets	$2.4B
TOTAL NON-CURRENT ASSETS	$28.5B
TOTAL ASSETS	$34.1B
Account Payables	$933M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$3.6B
Long-Term Debt	$31.9B
Deferred Revenue NC	$617M
Deferred Tax Liabilities	$1.2B
Other Non-Current Liabilities	$3.5B
TOTAL NON-CURRENT LIABILITIES	$37.2B
TOTAL LIABILITIES	$40.8B
Common Stock	$17M
Additional Paid-In Capital	$7.3B
Retained Earnings	$49.1B
Treasury Stock	-$60.6B
Accum. Other Comp. Income	-$2.5B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	-$6.8B
Minority Interest	$0
TOTAL EQUITY	-$6.8B
TOTAL LIABILITIES & EQUITY	$34.1B
Total Debt	$31.9B
Net Debt	$29.3B