McDonald's (MCD) Stock Price Drivers

Stock Price Drivers Profit Margins Menu Additions Revenues Unit Expansion Global Same Store Sales Profit Margins McDonald's overall operating margins are driven by margins of its company-operated stores as well as margins of its franchised outlets. Margins for company-operated stores have steadily improved in recent years, from 15.1% in 2008 to 18.2% in 2012 Operating margins for franchised outlets were 83% in FY12 and are considerably higher because of lower direct expenses, which are borne by the franchise operators themselves. These margins were up 2ppts in 2QFY13, which is a positive sign given the decline in overall margins as result of the expanded Dollar Menu. Company-operated Sales and Margins Company Operated Margin Company Operated Sales 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 BIDNESS SOURCES: Company Data, SEC filings, Bloomberg Professional Services Etc. DISCLAIMER: Bidness Etc(TM) and related marks are owned by Bidness Etc. Any other trademarks appearing on this website are the property of their respective owners, and are not used to indicate the origin of goods or services offered or provided by Bidness Etc herein or to suggest approval for or affiliation with Bidness Etc.