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McDonald's (XSGO:MCD) 10-Year RORE % : 22.86% (As of Dec. 2023)


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What is McDonald's 10-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 10-Year RORE % for the quarter that ended in Dec. 2023 was 22.86%.

The industry rank for McDonald's's 10-Year RORE % or its related term are showing as below:

XSGO:MCD's 10-Year RORE % is ranked better than
77.5% of 200 companies
in the Restaurants industry
Industry Median: 5.955 vs XSGO:MCD: 22.86

McDonald's 10-Year RORE % Historical Data

The historical data trend for McDonald's's 10-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 10-Year RORE % Chart

McDonald's Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
10-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.12 3.13 14.45 9.39 22.86

McDonald's Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
10-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 9.39 12.97 18.02 21.03 22.86

Competitive Comparison of McDonald's's 10-Year RORE %

For the Restaurants subindustry, McDonald's's 10-Year RORE %, along with its competitors' market caps and 10-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 10-Year RORE % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, McDonald's's 10-Year RORE % distribution charts can be found below:

* The bar in red indicates where McDonald's's 10-Year RORE % falls into.



McDonald's 10-Year RORE % Calculation

McDonald's's 10-Year RORE % for the quarter that ended in Dec. 2023 is calculated as:

10-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 10-year -Cumulative Dividends per Share for 10-year )
=( 11.57-4.83 )/( 73.13-43.64 )
=6.74/29.49
=22.86 %

* 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 10-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Dec. 2023 and 10-year before.


McDonald's  (XSGO:MCD) 10-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, 10-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 10-Year RORE % Related Terms

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McDonald's (XSGO:MCD) Business Description

Address
110 North Carpenter Street, Chicago, IL, USA, 60607
McDonald's is the largest restaurant owner-operator in the world, with 2022 system sales of $116 billion across more than 40,000 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 (XSGO:MCD) Headlines

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