MCDONALDS CORP
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
MCD$276.52-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-12.
0000063908-25-000025
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0000063908-25-000039
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 222 previous paragraphs and 230 current paragraphs.
175 unchanged; 32 reworded; 23 added; 14 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
Second Quarter and Six Months 2025 Financial Performance
Current report
Global comparable sales increased 3.8% for the quarter and increased 1.4% for the six months.
Current report
•U.S. comparable sales increased 2.5% for the quarter and decreased 0.5% for the six months. Comparable sales results for the quarter were primarily driven by positive check growth, while results for the six months were primarily driven by negative guest counts.
Current report
•International Operated Markets comparable sales increased 4.0% for the quarter and 1.6% for the six months. All markets reflected positive comparable sales for the quarter. Results for the six months were driven by positive comparable sales in nearly all markets.
Current report
•International Developmental Licensed Markets comparable sales increased 5.6% for the quarter and 4.5% for the six months. Positive comparable sales for both periods were led by Japan, with all geographic regions reflecting positive comparable sales.
Current report
•Consolidated revenues increased 5% (4% in constant currencies) for the quarter and 1% (1% in constant currencies) for the six months.
Current report
•Systemwide sales increased 8% (6% in constant currencies) for the quarter and 4% (4% in constant currencies) for the six months.
Current report
•Consolidated operating income increased 11% (8% in constant currencies) for the quarter and 4% (4% in constant currencies) for the six months. Excluding current and prior year charges detailed in the Operating Income and Operating Margin section on page 30 of this report, consolidated operating income increased 7% (4% in constant currencies) for the quarter and 2% (2% in constant currencies) for the six months.
Current report
•Diluted earnings per share was $3.14 for the quarter, an increase of 12% (10% in constant currencies) and $5.74 for the six months, an increase of 5% (5% in constant currencies). Excluding current and prior year charges detailed in the Net Income and Diluted Earnings Per Share section on page 24 of this report, diluted earnings per share for the quarter was $3.19, an increase of 7% (5% in constant currencies) and $5.86, an increase of 4% (3% in constant currencies) for the six months.
Current report
For the six months, net income increased 4% (4% in constant currencies) to $4,121 million, and diluted earnings per share increased 5% (5% in constant currencies) to $5.74. Foreign currency translation had a positive impact of $0.02 on diluted earnings per share.
Current report
Results for 2025 included the following:
Current report
Results for 2024 included the following:
Current report
•Net pre-tax charges of $97 million, or $0.11 per share, for the quarter and $89 million, or $0.10 per share, for the six months, primarily related to non-cash impairment charges associated with the sale of McDonald's business in South Korea
Current report
•Pre-tax charges of $57 million, or $0.06 per share, for the quarter and $100 million, or $0.10 per share, for the six months, related to restructuring charges associated with Accelerating the Organization
Current report
•Company-owned and operated margins for both periods reflected the impact of ongoing inflationary cost pressures and negative sales performance in the U.S., while the International Operated Markets reflected sales-driven growth, partly offset by the impact of ongoing inflationary cost pressures.
Current report
•Selling, general and administrative expenses increased $9 million or 1% (flat in constant currencies) for the quarter and decreased $29 million or 2% (2% in constant currencies) for the six months. Results for the quarter primarily reflected higher incentive-based compensation, partly offset by the comparison to prior year costs related to the 2024 Worldwide Owner/Operator convention, while the six months primarily reflected the comparison to prior year costs related to the 2024 Worldwide Owner/Operator convention, partly offset by higher incentive-based compensation.
Current report
•The increase in asset dispositions and other (income) expense, net for both periods reflected higher asset write-offs, higher store closing costs and litigation settlements.
Current report
Results for the quarter and six months ended 2024 reflected net pre-tax charges of $97 million and $89 million, respectively, primarily related to non-cash impairment charges associated with the sale of McDonald's business in South Korea and pre-tax charges of $57 million and $100 million for the quarter and six months, respectively, related to restructuring charges associated with Accelerating the Organization.
Current report
•Operating income increased $312 million, or 11% (8% in constant currencies), for the quarter and increased $225 million, or 4% (4% in constant currencies), for the six months. Results reflected pre-tax charges of $43 million and $109 million for the quarter and the six months, respectively, primarily related to restructuring charges associated with Accelerating the Organization.
Current report
Results for the quarter and six months ended 2024 reflected net pre-tax charges of $97 million and $89 million, respectively, primarily related to non-cash impairment charges and pre-tax restructuring charges of $57 million and $100 million for the quarter and six months, respectively, related to Accelerating the Organization.
Current report
•Excluding the current and prior year charges shown in the table above, operating income increased 7% (4% in constant currencies) for the quarter and 2% (2% in constant currencies) for the six months. Results for the quarter primarily reflected positive operating results primarily due to sales-driven growth in Franchised margins across all segments and lower Selling, general, and administrative expenses in International Developmental Licensed Markets & Corporate. Results for the six months primarily reflected positive operating results in the International Operated Markets, primarily due to sales-driven growth in Franchised margins, and positive operating results in International Developmental Licensed Markets & Corporate, primarily due to sales-driven growth in Franchised margins and lower Selling, general, and administrative expenses, partly offset by lower sales-driven Company-owned and operated margins and lower Other operating income in the U.S.
Current report
•Interest expense increased 4% (3% in constant currencies) for the quarter and 3% (3% in constant currencies) for the six months. Results for both periods reflected higher average debt balances, while the six months also reflected higher average interest rates.
Current report
•On July 4, 2025, Public Law Number 119-21 (Bill H.R. 1) was enacted in the U.S. with varying effective dates beginning in 2025. The new legislation extends certain provisions enacted with the Tax Cuts and Jobs Act, while introducing or restoring international and domestic business provisions that impact U.S. corporations. The Company is currently assessing the impact of the legislation on its Consolidated Financial Statements.
Removed paragraphs (14)
Previous report
First Quarter 2025 Financial Performance
Previous report
Global comparable sales decreased 1.0% (excluding Leap Day in the prior year, global comparable sales were essentially flat):
Previous report
•U.S. decreased 3.6%. Comparable sales results were primarily driven by negative comparable guest counts.
Previous report
•International Operated Markets decreased 1.0%. Comparable sales reflected mixed results across the markets, primarily impacted by negative comparable sales in the U.K.
Previous report
•International Developmental Licensed Markets increased 3.5%. Positive comparable sales were primarily driven by the Middle East and Japan.
Previous report
•Consolidated revenues decreased 3% (2% in constant currencies).
Previous report
•Systemwide sales decreased 1% (increased 1% in constant currencies).
Previous report
•Consolidated operating income decreased 3% (1% in constant currencies). Results reflected pre-tax charges of $66 million and $35 million for the current year and prior year, respectively, primarily related to restructuring charges associated with Accelerating the Organization. Excluding these current and prior year charges, consolidated operating income decreased (2)% (flat in constant currencies).
Previous report
•Diluted earnings per share was $2.60, a decrease of 2% (1% in constant currencies). Excluding the current year charges described above of $0.07 per share, diluted earnings per share was $2.67, a decrease of 1% (increase of 1% in constant currencies) when also excluding prior year charges.
Previous report
•Company-owned and operated margins in the U.S. reflected negative sales performance and the negative impact of foreign currency translation in the International Operated Markets. The U.S. and International Operated Markets were also impacted by ongoing inflationary cost pressures.
Previous report
•Selling, general and administrative expenses decreased $38 million or 5% (5% in constant currencies). Results primarily reflect the timing of investments in digital and technology, as well as transformation efforts, under our Accelerating the Arches strategy and the comparison to prior year costs related to the 2024 Worldwide Owner/Operator convention.
Previous report
•Operating income decreased $87 million or 3% (1% in constant currencies). Results reflected pre-tax charges of $66 million and $35 million for the three months ended March 31, 2025 and 2024, respectively, primarily related to restructuring charges associated with Accelerating the Organization.
Previous report
•Excluding the charges for the three months ended March 31, 2025 and 2024 shown in the table above, operating income decreased 2% (flat in constant currencies). Results primarily reflected lower sales-driven Franchised and Company-owned and operated margins in the U.S. and International Operated Markets, partly offset by positive operating results in International Developmental Licensed Markets & Corporate primarily due to lower Selling, general, and administrative expenses.
Previous report
•Interest expense increased 1% (2% in constant currencies) primarily due to higher average debt balances as well as higher average interest rates.
Reworded paragraphs (32)
Previous wording
Certain columns and rows in financial tables within management's discussion and analysis of financial condition and results of operations may not add due to rounding. Percentages have been calculated from the underlying whole-dollar amounts for all periods presented.
Current wording
Certain columns and rows in financial tables within MD&A may not add due to rounding. Percentages have been calculated from the underlying whole-dollar amounts for all periods presented.
Previous wording
The Company franchises and owns and operates McDonald’s restaurants, which serve a locally relevant menu of quality food and beverages in communities across more than 100 countries. Of the 43,756 McDonald's restaurants at March 31, 2025, approximately 95% were franchised.
Current wording
The Company franchises and owns and operates McDonald's restaurants, which serve a locally relevant menu of quality food and beverages in communities across more than 100 countries. Of the 44,113 McDonald's restaurants at June 30, 2025, approximately 95% were franchised.
Previous wording
•Commit to the Core menu by tapping into customer demand for the familiar and focusing on serving our iconic products that are beloved by customers around the world such as our World Famous Fries, Big Mac, Quarter Pounder and Chicken McNuggets, which are some of our seventeen unique billion-dollar brands. Building on its foundational strength with burgers, the Company will continue to evolve and innovate its longest-standing menu item with plans to implement “Best Burger”; a series of operational and formulation changes designed to deliver hotter, juicier, tastier burgers to nearly all markets by the end of 2026. Further, the Company is focused on continuing to gain share in the rapidly growing chicken category, as we continue to aggressively grow our chicken brands. This includes plans to offer the McCrispy sandwich in nearly all major markets by the end of 2025 and to extend the McCrispy brand into strips and wraps in several markets. These planned innovations and new menu offerings reflect the Company’s ability to meet evolving customer preferences. The Company also continues to see a significant opportunity with beverages and desserts to drive long-term growth.
Current wording
•Commit to the Core menu by tapping into customer demand for the familiar and focusing on serving our iconic products that are beloved by customers around the world such as our World Famous Fries, Big Mac, Quarter Pounder and Chicken McNuggets, which are some of our seventeen unique billion-dollar brands. Building on its foundational strength with burgers, the Company will continue to evolve and innovate its longest-standing menu item with plans to continue to implement “Best Burger”; a series of operational and formulation changes designed to deliver hotter, juicier, tastier burgers to nearly all markets by the end of 2026. Further, the Company is focused on continuing to gain share in the rapidly growing chicken category, as we continue to aggressively grow our chicken brands. This includes plans to offer the McCrispy sandwich in nearly all major markets by the end of 2025 and to extend the McCrispy brand into strips and wraps in several markets. These planned innovations and new menu offerings reflect the Company's ability to meet evolving customer preferences. The Company also continues to see a significant opportunity with beverages to drive long-term growth.
Previous wording
◦Digital: The Company’s digital experience is transforming how customers order, pay and receive their food. Through digital tools, customers can access personalized offers, participate in a loyalty program, order through our mobile app and receive McDonald's food through the channel of their choice. In the U.S., we are providing increased convenience to customers through “Ready on Arrival”; a digital enhancement that enables crew to begin assembling a customer’s mobile order prior to arrival at the restaurant to expedite service and elevate customer satisfaction. The Company plans to deploy this initiative in its top six markets by the end of 2025. The Company has successful loyalty programs in 60 markets, including its top six markets. McDonald’s loyalty customers have proven to be highly engaged, and the Company plans to increase its 90-day active users to 250 million by the end of 2027. Further, the Company plans to grow its annual Systemwide sales to loyalty members to $45.0 billion by the end of 2027.
Current wording
◦Digital: The Company's digital experience is transforming how customers order, pay and receive their food. Through digital tools, customers can access personalized offers, participate in a loyalty program, order through our mobile app and receive McDonald's food through the channel of their choice. We are also providing increased convenience to customers through “Ready on Arrival”; a digital enhancement that enables crew to begin assembling a customer's mobile order prior to arrival at the restaurant to expedite service and elevate customer satisfaction. The Company plans to deploy this initiative in its top six markets by the end of 2025. The Company has successful loyalty programs in 60 markets, including its top six markets. McDonald's loyalty customers have proven to be highly engaged, and the Company plans to increase its 90-day active users to 250 million by the end of 2027. Further, the Company plans to grow its annual Systemwide sales to loyalty members to $45.0 billion by the end of 2027.
Previous wording
◦Delivery: The Company offers delivery from over 38,000 restaurants across approximately 100 markets, representing nearly 90% of McDonald's restaurants. The Company is continuing to build on and enhance the delivery experience for customers, including adding the ability to place a delivery order in our mobile app (a feature that is currently available in five of the Company’s top markets). The Company continues to scale this capability and expects to increase the percentage of Systemwide delivery sales originating from our mobile app to 30% by the end of 2027. The Company also has long-term strategic partnerships with delivery providers that continue to benefit the Company, customers and franchisees by optimizing operational efficiencies and creating a seamless customer experience.
Current wording
◦Delivery: The Company offers delivery from over 39,000 restaurants across approximately 100 markets, representing nearly 90% of McDonald's restaurants. The Company is continuing to build on and enhance the delivery experience for customers, including adding the ability to place a delivery order in our mobile app (a feature that is currently available in five of the Company's top markets). The Company continues to scale this capability and expects to increase the percentage of Systemwide delivery sales originating from our mobile app to 30% by the end of 2027. The Company also has long-term strategic partnerships with delivery providers that continue to benefit the Company, customers and franchisees by optimizing operational efficiencies and creating a seamless customer experience.
Previous wording
◦Drive Thru: The Company has the most drive thru locations worldwide, with nearly 28,000 drive thru locations globally, including over 95% of the over 13,500 locations in the U.S. This channel remains a competitive advantage in meeting customers’ demand for flexibility and choice. McDonald’s network currently provides unmatched scale and convenience for customers, while also offering significant growth opportunities, such as adding additional drive thru lanes to increase capacity and improve speed and efficiency. The Company continues to build on its drive thru advantage, as the vast majority of new restaurant openings in the U.S. and International Operated Markets will include a drive thru.
Current wording
◦Drive Thru: The Company has the most drive thru locations worldwide, with over 28,000 drive thru locations globally, including over 95% of the over 13,500 locations in the U.S. This channel remains a competitive advantage in meeting customers’ demand for flexibility and choice. McDonald's network currently provides unmatched scale and convenience for customers, while also offering significant growth opportunities, such as adding additional drive thru lanes to increase capacity and improve speed and efficiency. The Company continues to build on its drive thru advantage, as the vast majority of new restaurant openings in the U.S. and International Operated Markets will include a drive thru.
Previous wording
•Restaurant: The Company isbuilding the easiest and most efficient restaurant operating platform which enables the Company and franchisees to run restaurants more efficiently and utilize the latest cloud-based technology to make it easier for restaurant crew to deliver exceptional customer service. The Company intends to deploy new, universal software that all McDonald’s restaurants will run on, enabling restaurants to roll out innovation even faster, with less complexity and more stability; and customers will enjoy a more familiar, consistent experience.
Current wording
•Restaurant: The Company isbuilding the easiest and most efficient restaurant operating platform which enables the Company and franchisees to run restaurants more efficiently and utilize the latest cloud-based technology to make it easier for restaurant crew to deliver exceptional customer service. The Company intends to deploy new, universal software that all McDonald's restaurants will run on, enabling restaurants to roll out innovation even faster, with less complexity and more reliability; and customers will enjoy a more familiar, consistent experience.
Previous wording
In addition to the comparable sales results, the Company had the following financial results:
Current wording
In addition to the comparable sales results, the Company had the following financial results for the quarter and six months:
Previous wording
•Systemwide sales include sales at all restaurants, whether owned and operated by the Company or by franchisees. Systemwide sales to loyalty members is comprised of all sales to customers who self-identify as a loyalty member when transacting with both Company-owned and operated and franchised restaurants. Systemwide sales to loyalty members are measured across 60 markets with loyalty programs. Systemwide sales to loyalty members represents an aggregation of the prior four quarters of sales to loyalty members active in the last 90 days of the respective quarter. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company's financial performance because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The Company's revenues consist of sales by Company-owned and operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and affiliates. Changes in Systemwide sales are primarily driven by comparable sales and net restaurant unit expansion.
Current wording
•Systemwide sales include sales at all restaurants, whether owned and operated by the Company or by franchisees. Systemwide sales to loyalty members are comprised of all sales to customers who self-identify as a loyalty member when transacting with both Company-owned and operated and franchised restaurants. Systemwide sales to loyalty members are measured across 60 markets with loyalty programs. Systemwide sales to loyalty members represents an aggregation of the prior four quarters of sales to loyalty members active in the last 90 days of the respective quarter. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company's financial performance because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The Company's revenues consist of sales by Company-owned and operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and affiliates. Changes in Systemwide sales are primarily driven by comparable sales and net restaurant unit expansion.
Previous wording
The impact of foreign currency translation on consolidated operating results for the quarter primarily reflected the weakening of all major currencies against the U.S. Dollar, primarily driven by the Euro.
Current wording
The impact of foreign currency translation on consolidated operating results for both periods primarily reflected the strengthening of most major currencies against the U.S. Dollar, partly offset by the weakening of the Australian Dollar and Canadian Dollar.
Previous wording
Net income decreased 3% (2% in constant currencies) to $1,868 million, and diluted earnings per share decreased 2% (1% in constant currencies) to $2.60. Foreign currency translation had a negative impact of $0.04 on diluted earnings per share.
Current wording
For the quarter, net income increased 11% (9% in constant currencies) to $2,253 million, and diluted earnings per share increased 12% (10% in constant currencies) to $3.14. Foreign currency translation had a positive impact of $0.06 on diluted earnings per share.
Previous wording
Results includedpre-tax charges of $66 million, or $0.07 per share, for the three months ended March 31, 2025 and $35 million, or $0.04 per share, for the three months ended March 31, 2024, primarily related to restructuring charges associated with the Company's internal effort to modernize ways of working (Accelerating the Organization).
Current wording
•Pre-tax charges of $43 million, or $0.05 per share, for the quarter and $109 million, or $0.12 per share, for the six months, primarily related to restructuring charges associated with the Company's internal effort to modernize ways of working (Accelerating the Organization)
Previous wording
Excluding the above items, operating income performance was primarily driven by lower Franchised and Company-owned and operated margins.
Current wording
Excluding the above items, operating income growth for both periods was primarily driven by higher sales-driven Franchised margins. Results for the six months were partly offset by lower Company-owned and operated margins, driven by the U.S.
Previous wording
During the quarter, the Company paid a quarterly dividend of $1.77 per share, or $1.3 billion. Additionally, the Company repurchased 1.5 million shares of stock for $447 million.
Current wording
During the quarter, the Company paid a dividend of $1.77 per share, or $1.3 billion, resulting in total dividends paid for the six months of $2.5 billion. Additionally, during the quarter, the Company repurchased 1.7 million shares of stock for $506 million, resulting in total purchases for the six months of 3.2 million shares, or $953 million.
Previous wording
•Total Franchised revenues and Company-owned and operated sales decreased 5% (3% in constant currencies). U.S. revenues reflected negative sales performance and International Operated Markets' revenues were negatively impacted by foreign currency translation. International Developmental Licensed Markets & Corporate revenues were impacted by the prior year sale of McDonald's business in South Korea, partly offset by the prior year acquisition of McDonald's business in Israel and positive sales performance.
Current wording
•Total Franchised revenues and Company-owned and operated sales increased 4% (2% in constant currencies) for the quarter and were flat (flat in constant currencies) for the six months. Both periods benefited from positive sales performance in the International Operated Markets. In the U.S., the quarter benefited from positive franchised sales performance, while the six months was impacted by negative Company-owned and operated sales performance. International Developmental Licensed Markets & Corporate revenues for both periods were impacted by the prior year sale of McDonald's business in South Korea, partly offset by the prior year acquisition of McDonald's business in Israel and positive sales performance.
Previous wording
The following table presents the percent change in comparable sales for the three months ended March 31, 2025 and 2024:
Current wording
The following table presents the percent change in comparable sales for the quarters and six months ended June 30, 2025 and 2024:
Previous wording
The following table presents the percent change in Systemwide sales for the three months ended March 31, 2025:
Current wording
The following table presents the percent change in Systemwide sales for the quarter and six months ended June 30, 2025:
Previous wording
Franchised sales are not recorded as revenues by the Company, but are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The following table presents Franchised sales and the related increases/(decreases) for the three months ended March 31, 2025 and 2024:
Current wording
Franchised sales are not recorded as revenues by the Company, but are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The following table presents Franchised sales and the related increases/(decreases) for the quarters and six months ended June 30, 2025 and 2024:
Previous wording
•Franchised margins reflected negative sales performance in the U.S. and the negative impact of foreign currency translation in the International Operated Markets. International Developmental Licensed Markets & Corporate reflected positive sales performance. Franchised margins represented more than 90% of restaurant margin dollars.
Current wording
•Franchised margins in the U.S., International Operated Markets and the International Developmental Licensed Markets & Corporate reflected sales-driven growth for both periods. Franchised margins represented approximately 90% of restaurant margin dollars.
Previous wording
•Total restaurant margins included depreciation and amortization expense of $413 million and $411 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
•Total restaurant margins included depreciation and amortization expense of $425 million and $401 million for the quarters ended 2025 and 2024, respectively, and $839 million and $813 million for the six months ended 2025 and 2024, respectively.
Previous wording
•Selling, general and administrative expenses as a percent of Systemwide sales were 2.2% and 2.3% for the three months ended March 31, 2025 and 2024, respectively.
Current wording
•Selling, general and administrative expenses as a percent of Systemwide sales were 2.1% and 2.2% for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
•Equity in earnings of unconsolidated affiliates reflected higher equity in earnings in China as a result of improved operating performance and the Company's increased ownership in Grand Foods Holding when compared to the same period in 2024.
Current wording
•Equity in earnings of unconsolidated affiliates for both periods primarily reflected higher equity in earnings in China as a result of improved operating performance.
Previous wording
•Impairment and other charges (gains), net reflected pre-tax charges of $66 million and $35 million for the three months ended March 31, 2025 and 2024, respectively, primarily related to restructuring charges associated with Accelerating the Organization.
Current wording
•Impairment and other charges (gains), net reflected pre-tax charges of $43 million and $109 million for the quarter and the six months, respectively, primarily related to restructuring charges associated with Accelerating the Organization.
Previous wording
*Refer to the Impairment and other charges (gains), net line within the Other Operating (Income) Expense, Net section above for details of the charges in this table.
Current wording
*Refer to the Impairment and other charges (gains), net line within the Other Operating (Income) Expense, Net section on page 29 for details of the charges in this table.
Previous wording
The increase in non-GAAP operating margin was primarily due to the prior year sale of McDonald's business in South Korea and lower Selling, general and administrative expenses, partly offset by the prior year acquisition of McDonald's business in Israel and lower Franchised and Company-owned and operated margin dollars.
Current wording
The increase in non-GAAP operating margin was primarily due to the prior year sale of McDonald's business in South Korea and lower Selling, general and administrative expenses, partly offset by the prior year acquisition of McDonald's business in Israel.
Previous wording
•Interest income decreased due to lower average cash balances.
Current wording
•Interest income for the six months decreased due to lower average cash balances and lower average interest rates.
Previous wording
•The effective income tax rate was 19.8% and 19.9% for the three months ended March 31, 2025 and 2024, respectively.
Current wording
•The effective income tax rate was 21.3% and 20.9% for the quarters ended 2025 and 2024, respectively, and 20.6% and 20.4% for the six months ended 2025 and 2024, respectively.
Previous wording
Cash provided by operations totaled $2.4 billion and exceeded capital expenditures by $1.9 billion. Cash provided by operations slightly increased compared to the prior year primarily due to changes in working capital.
Current wording
Cash provided by operations totaled $4.4 billion and exceeded capital expenditures by $3.1 billion for the six months 2025. Cash provided by operations slightly increased compared with the six months 2024, in line with operating results.
Previous wording
Cash used for investing activities totaled $771 million, a decrease of $1.7 billion primarily due to the Company's increased ownership stake in McDonald's China business in the prior year.
Current wording
Cash used for investing activities totaled $1.6 billion for the six months 2025, a decrease of $1.7 billion compared with the six months 2024. The decrease was primarily due to the Company's acquisition of an increased ownership stake in McDonald's China business in the prior year.
Previous wording
Cash used for financing activities totaled $1.5 billion, a decrease of $2.1 billion. The decrease was primarily due to $1.5 billion of debt issuances in the current year.
Current wording
Cash used for financing activities totaled $2.1 billion for the six months 2025, a decrease of $2.4 billion compared with the six months 2024. The decrease was primarily due to higher bond issuances and lower treasury stock purchases in the current year.
Previous wording
•Based on current interest and foreign currency exchange rates, the Company expects interest expense for the full year 2025 to increase between 4% and 6% driven primarily by higher average debt balances and higher average interest rates.
Current wording
•Based on current interest and foreign currency exchange rates, the Company expects interest expense for the full year 2025 to increase about 4% driven primarily by higher average debt balances and higher average interest rates.
Previous wording
SEC. The risks described below are not the only risks we face. Additional risks not currently known to us or that we currently deem to be immaterial may also significantly adversely affect our business. If any of these risks were to materialize or intensify, our expectations (or the underlying assumptions) may change and our performance may be adversely affected.
Current wording
Our business results are subject to a variety of risks, including those that are described below and elsewhere in our filings with the SEC. The risks described below are not the only risks we face. Additional risks not currently known to us or that we currently deem to be immaterial may also significantly adversely affect our business. If any of these risks were to materialize or intensify, our expectations (or the underlying assumptions) may change and our performance may be adversely affected.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Our business results are subject to a variety of risks, including those that are described below and elsewhere in our filings with the