MCDNEUTRAL

Gross Margin

55.9%

Updated 53h ago

Sector Performance

66th percentile

MCD

55.9%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

McDonald’s current gross margin of 55.9% means that for every dollar of revenue, the company keeps about 55.9 cents after paying the direct costs of producing its food and beverages—a measure of how efficiently it turns sales into profit before other expenses.

This figure sits above the sector median of 43.9%, placing McDonald’s in the 65th percentile among its industry peers, indicating it earns a higher-than-average margin relative to competitors. No year-over-year or quarter-over-quarter change is available, and the trend over the last eight quarters is marked as N/A, leaving the single 55.9% data point without a historical context to assess direction. The combination of a strong margin level (above peers) with no trend data creates a mixed picture: the current profitability is favorable, but the absence of any change means investors cannot evaluate whether this advantage is stable, improving, or slipping. This metric supports the overall NEUTRAL verdict because the solid margin alone does not justify a bullish or bearish stance—it confirms a competitive position, yet offers no signal of momentum to tilt the rating either way.

Frequently Asked Questions

What does the Gross Margin tell investors about MCD?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are MCD's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

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MCD

55.9%

Sector Median

44.7%

Sector Avg

45.2%

How MCD's Gross Margin compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.