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MCD (McDonald's) 5-Year RORE % : 26.16% (As of Sep. 2024)


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What is McDonald's 5-Year RORE %?

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. McDonald's's 5-Year RORE % for the quarter that ended in Sep. 2024 was 26.16%.

The industry rank for McDonald's's 5-Year RORE % or its related term are showing as below:

MCD's 5-Year RORE % is ranked better than
72.24% of 281 companies
in the Restaurants industry
Industry Median: -25 vs MCD: 26.16

McDonald's 5-Year RORE % Historical Data

The historical data trend for McDonald's's 5-Year RORE % 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 5-Year RORE % Chart

McDonald's Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
5-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.10 7.17 24.39 5.31 21.40

McDonald's Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
5-Year RORE % 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 22.30 21.40 23.49 28.46 26.16

Competitive Comparison of McDonald's's 5-Year RORE %

For the Restaurants subindustry, McDonald's's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, McDonald's's 5-Year RORE % distribution charts can be found below:

* The bar in red indicates where McDonald's's 5-Year RORE % falls into.



McDonald's 5-Year RORE % Calculation

McDonald's's 5-Year RORE % for the quarter that ended in Sep. 2024 is calculated as:

5-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 5-year -Cumulative Dividends per Share for 5-year )
=( 11.39-6.55 )/( 46.94-28.44 )
=4.84/18.5
=26.16 %

* 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.

In the calculation of 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Sep. 2024 and 5-year before.


McDonald's  (NYSE:MCD) 5-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


McDonald's 5-Year RORE % 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.
Executives
Joseph M. Erlinger officer: President, McDonald's USA MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Marion K. Gross officer: EVP-Chief Supply Chain Officer MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Edith Morgan Flatley officer: EVP - Global CMO MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Christopher J Kempczinski director, officer: President and CEO THREE LAKES DRIVE, NORTHFIELD IL 60093
Ian Frederick Borden officer: EVP & CFO MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Jonathan Banner officer: EVP - Chief Impact Officer MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Catherine A. Hoovel officer: SVP - Corporate Controller MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Heidi B Capozzi officer: EVP - Chief People Officer C/O THE BOEING COMPANY, 100 RIVERSIDE PLAZA, CHICAGO IL 60606-1596
Brian S Rice officer: EVP-Global Chief Info. Officer 7000 CARDINAL PLACE, DUBLIN OH 43017
Enrique Jr Hernandez director, other: Non-Exec Chairman of the Board INTER-CON SECURITY SYSTEMS, INC., 210 SOUTH DELACEY AVENUE, PASADENA CA 91105
Desiree Ralls-morrison officer: EVP, Chief Legal Off. and Sec. C/O BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752
Manuel Jm Steijaert officer: EVP - Chief Customer Officer 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Jo Sempels officer: President, IDL MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Catherine M. Engelbert director 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Rogers John W Jr director ARIEL CAPITAL MANAGEMENT, INC., 200 EAST RANDOLPH DRIVE, SUITE 2900, CHICAGO IL 60601