GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » McDonald's Corp (BSP:MCDC34) » Definitions » EBIT

McDonald's (BSP:MCDC34) EBIT : R$61,560 Mil (TTM As of Sep. 2024)


View and export this data going back to 2010. Start your Free Trial

What is McDonald's EBIT?

McDonald's's earnings before interest and taxes (EBIT) for the three months ended in Sep. 2024 was R$17,854 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2024 was R$61,560 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. McDonald's's annualized ROC % for the quarter that ended in Sep. 2024 was 20.21%. McDonald's's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 33.69%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. McDonald's's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 3.88%.


McDonald's EBIT Historical Data

The historical data trend for McDonald's's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

McDonald's EBIT Chart

McDonald's Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37,515.13 37,858.82 58,322.94 47,378.55 58,224.32

McDonald's Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16,124.86 14,086.93 13,848.82 15,770.50 17,853.87

Competitive Comparison of McDonald's's EBIT

For the Restaurants subindustry, McDonald's's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


McDonald's's EV-to-EBIT Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, McDonald's's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where McDonald's's EV-to-EBIT falls into.



McDonald's EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was R$61,560 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


McDonald's  (BSP:MCDC34) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

McDonald's's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=71526.224 * ( 1 - 20.68% )/( (270656.91 + 290867.407)/ 2 )
=56734.6008768/280762.1585
=20.21 %

where

Invested Capital(Q: Jun. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=289777.566 - 17531.756 - ( 4265.791 - max(0, 21059.651 - 22648.551+4265.791))
=270656.91

Invested Capital(Q: Sep. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=311069.302 - 27932.663 - ( 6761.654 - max(0, 34932.442 - 27201.674+6761.654))
=290867.407

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

McDonald's's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=71415.468/( ( (204914.175 + max(851.005, 0)) + (218228.085 + max(-7492.643, 0)) )/ 2 )
=71415.468/( ( 205765.18 + 218228.085 )/ 2 )
=71415.468/211996.6325
=33.69 %

where Working Capital is:

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(12948.184 + 247.761 + 5186.815) - (17531.756 + 0 + -0.0010000000002037)
=851.005

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(13622.988 + 299.041 + 6517.991) - (27932.663 + 0 + 0)
=-7492.643

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

McDonald's's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Sep. 2024 )
=61560.117/1588198.128
=3.88 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


McDonald's EBIT Related Terms

Thank you for viewing the detailed overview of McDonald's's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.


McDonald's Business Description

Address
110 North Carpenter Street, Chicago, IL, USA, 60607
McDonald's is the largest restaurant owner-operator in the world, with 2023 system sales of $130 billion across nearly than 42,000 stores and 115 markets. McDonald's pioneered the franchise model, building its footprint through partnerships with independent restaurant franchisees and master franchise partners around the globe. The firm earns roughly 60% of its revenue from franchise royalty fees and lease payments, with most of the remainder coming from company-operated stores across its three core segments: the United States, internationally operated markets, and international developmental/licensed markets.

McDonald's Headlines

No Headlines