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McDonald's (MIL:1MCD) 3-Year ROIIC % : 227.90% (As of Dec. 2023)


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What is McDonald's 3-Year ROIIC %?

3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year. McDonald's's 3-Year ROIIC % for the quarter that ended in Dec. 2023 was 227.90%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for McDonald's's 3-Year ROIIC % or its related term are showing as below:

MIL:1MCD's 3-Year ROIIC % is ranked better than
93.6% of 328 companies
in the Restaurants industry
Industry Median: -0.43 vs MIL:1MCD: 227.90

McDonald's 3-Year ROIIC % Historical Data

The historical data trend for McDonald's's 3-Year ROIIC % 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 3-Year ROIIC % Chart

McDonald's Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
3-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.92 2.26 8.77 138.54 227.90

McDonald's Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
3-Year ROIIC % 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 - 227.90 - - -

Competitive Comparison of McDonald's's 3-Year ROIIC %

For the Restaurants subindustry, McDonald's's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, McDonald's's 3-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where McDonald's's 3-Year ROIIC % falls into.



McDonald's 3-Year ROIIC % Calculation

McDonald's's 3-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:

3-Year ROIIC %=3-Year Incremental Net Operating Profit After Taxes (NOPAT)**/3-Year Incremental Invested Capital**
=( 8669.3485035 (Dec. 2023) - 4563.6516072 (Dec. 2020) )/( 46804.506 (Dec. 2023) - 40548.192 (Dec. 2020) )
=4105.6968963/6256.314
=65.62%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


McDonald's  (MIL:1MCD) 3-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


McDonald's 3-Year ROIIC % Related Terms

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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

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