McDonald's Corp. Q3 FY2023 results: revenue $6.7 billion, up 14.0% on the year

McDonald's Corp. (MCD) reported revenue of $6.7 billion for Q3 FY2023, the quarter ended 30 September 2023, up 14.0% on the same quarter a year earlier. Net income was $2.3 billion, up 16.9% on the year, and diluted earnings per share $3.17. The figures are the company's own, from the 10-Q it filed with the SEC on 2 November 2023.

Revenue$6.7 billionup 14.0%

Net income$2.3 billionup 16.9%

Diluted EPS$3.17

QuarterQ3 FY2023ended 30 September 2023

The quarter, against the one before and a year earlier

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Revenue	6,692	n/a	n/a	n/a
Cost of revenue	625	n/a	n/a	n/a
Gross profit	6,067	n/a	n/a	n/a
Gross margin	90.7%	n/a	n/a
Operating income	3,208	n/a	n/a	n/a
Operating margin	47.9%	n/a	n/a
Interest expense	341	n/a	n/a	n/a
Income tax	606	n/a	n/a	n/a
Net income	2,317	n/a	n/a	n/a
Net margin	34.6%	n/a	n/a
Diluted EPS	$3.17	n/a	n/a	n/a

$ million except per share. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Operating cash flow	3,029	n/a	n/a	n/a
Capital expenditure	570	n/a	n/a	n/a
Free cash flow	2,459	n/a	n/a	n/a
Free cash flow margin	36.7%	n/a	n/a
Depreciation and amortisation	96.7	n/a	n/a	n/a
Share-based compensation	42.9	n/a	n/a	n/a
Buybacks	1,054	n/a	n/a	n/a
Dividends paid	1,105	n/a	n/a	n/a
Dividend per share	$1.52	n/a	n/a	n/a
Diluted shares, weighted	732m	n/a	n/a	n/a
Shares outstanding at period end	725m	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2023	Quarter before	A year earlier	Change on the year
Total assets	52,089	n/a	n/a	n/a
Cash and equivalents	3,496	n/a	n/a	n/a
Inventory	47.6	n/a	n/a	n/a
Goodwill	2,965	n/a	n/a	n/a
Long-term debt	37,275	n/a	n/a	n/a
Borrowings, as the company tags them	37,300	n/a	n/a	n/a
Operating lease liabilities	11,807	n/a	n/a	n/a
Shareholders' equity	-4,855	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	6,692	6,406	6,169	6,490	6,873	6,388	5,956	6,843	7,078	7,008	6,517	7,099
Cost of revenue	625	n/a	627	629	646	n/a	620	654	666	n/a	676	680
Gross profit	6,067	n/a	5,542	5,861	6,227	n/a	5,336	6,189	6,412	n/a	5,841	6,419
Gross margin	91%	n/a	90%	90%	91%	n/a	90%	90%	91%	n/a	90%	90%
SG&A	n/a	n/a	720	691	647	800	682	700	785	872	759	817
Operating income	3,208	2,802	2,736	2,920	3,188	2,868	2,648	3,232	3,357	3,156	2,953	3,338
Operating margin	48%	44%	44%	45%	46%	45%	44%	47%	47%	45%	45%	47%
Interest expense	341	360	372	373	381	380	376	390	406	410	400	409
Net income	2,317	2,039	1,929	2,022	2,255	2,017	1,868	2,253	2,278	2,164	1,983	2,362
Net margin	35%	32%	31%	31%	33%	32%	31%	33%	32%	31%	30%	33%
Diluted EPS	$3.17	$2.79	$2.66	$2.80	$3.13	$2.80	$2.60	$3.14	$3.18	$3.03	$2.78	$3.32
Operating cash flow	3,029	2,489	2,390	1,689	2,736	2,632	2,428	1,998	3,428	2,697	2,412	2,807
Capital expenditure	570	757	547	628	794	806	551	744	1,011	1,059	682	831
Free cash flow	2,459	1,732	1,843	1,061	1,942	1,826	1,877	1,254	2,417	1,638	1,730	1,976
Buybacks	1,054	852	918	934	469	503	477	505	501	573	396	856
Dividends paid	1,105	1,208	1,206	1,199	1,197	1,268	1,266	1,265	1,262	1,322	1,323	1,317
Shares outstanding	725m	722m	721m	717m	717m	714m	715m	714m	712m	710m	711m	708m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 September 2023, filed 2 November 2023, accession 0000063908-23-000101: the filing on EDGAR. All of McDonald's Corp.'s filings: EDGAR company page.

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