Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 1-5231 | ||
Entity Registrant Name | McDONALD’S CORPORATION | ||
Entity Central Index Key | 0000063908 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-2361282 | ||
Entity Address, Address Line One | 110 North Carpenter Street, | ||
Entity Address, City or Town | Chicago, | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60607 | ||
City Area Code | (630) | ||
Local Phone Number | 623-3000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | MCD | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 217,448,941,822 | ||
Entity Common Stock, Shares Outstanding | 722,051,488 | ||
Documents Incorporated by Reference | Part III of this Form 10-K incorporates information by reference from the registrant’s 2024 definitive proxy statement, which will be filed no later than 120 days after December 31, 2023. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Chicago, Illinois |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUES | |||
Sales by Company-operated restaurants | $ 9,741.6 | $ 8,748.4 | $ 9,787.4 |
Revenues from franchised restaurants | 15,436.5 | 14,105.8 | 13,085.4 |
Other revenues | 315.6 | 328.4 | 350.1 |
Total revenues | 25,493.7 | 23,182.6 | 23,222.9 |
OPERATING COSTS AND EXPENSES | |||
Food & paper | 3,039 | 2,737.3 | 3,096.8 |
Payroll & employee benefits | 2,885.8 | 2,617.4 | 2,677.2 |
Occupancy & other operating expenses | 2,299.3 | 2,026.2 | 2,273.3 |
Franchised restaurants-occupancy expenses | 2,474.6 | 2,349.7 | 2,335 |
Other restaurant expenses | 232.5 | 244.8 | 260.4 |
Depreciation and amortization | 381.7 | 370.4 | 329.7 |
Other | 2,435.2 | 2,492.2 | 2,377.8 |
Other operating (income) expense, net | 98.9 | 973.6 | (483.3) |
Total operating costs and expenses | 13,847 | 13,811.6 | 12,866.9 |
Operating income | 11,646.7 | 9,371 | 10,356 |
Interest expense-net of capitalized interest of $14.5, $9.5 and $6.8 | 1,360.8 | 1,207 | 1,185.8 |
Nonoperating (income) expense, net | (236.3) | 338.6 | 42.3 |
Income before provision for income taxes | 10,522.2 | 7,825.4 | 9,127.9 |
Provision for income taxes | 2,053.4 | 1,648 | 1,582.7 |
Net income | $ 8,468.8 | $ 6,177.4 | $ 7,545.2 |
Earnings per common share–basic | $ 11.63 | $ 8.39 | $ 10.11 |
Earnings per common share–diluted | 11.56 | 8.33 | 10.04 |
Dividends declared per common share | $ 6.23 | $ 5.66 | $ 5.25 |
Weighted-average shares outstanding–basic | 727.9 | 736.5 | 746.3 |
Weighted-average shares outstanding–diluted | 732.3 | 741.3 | 751.8 |
Consolidated Statement of Inc_2
Consolidated Statement of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Interest expense, capitalized interest | $ 14.5 | $ 9.5 | $ 6.8 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 8,468.8 | $ 6,177.4 | $ 7,545.2 |
Foreign currency translation adjustments: | |||
Gain (loss) recognized in accumulated other comprehensive income (AOCI), including net investment hedges | 136.1 | (354.1) | (216.2) |
Reclassification of (gain) loss to net income | 0 | 504.4 | 34.7 |
Foreign currency translation adjustments-net of tax benefit (expense) of $94.1, $(207.6), and $(186.5) | 136.1 | 150.3 | (181.5) |
Cash flow hedges: | |||
Gain (loss) recognized in AOCI | (19.8) | 160.3 | 57.6 |
Reclassification of (gain) loss to net income | (16.6) | (104.8) | 28.9 |
Cash flow hedges-net of tax benefit (expense) of $9.8, $(16.0), and $(24.9) | (36.4) | 55.5 | 86.5 |
Defined benefit pension plans: | |||
Gain (loss) recognized in AOCI | (69.5) | (118.7) | 108.1 |
Reclassification of (gain) loss to net income | 0.4 | 0 | 0 |
Defined benefit pension plans-net of tax benefit (expense) of $22.2, $43.2, and $(36.6) | (69.1) | (118.7) | 108.1 |
Total other comprehensive income (loss), net of tax | 30.6 | 87.1 | 13.1 |
Comprehensive income | $ 8,499.4 | $ 6,264.5 | $ 7,558.3 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Other comprehensive income (loss), foreign currency translation adjustment, tax | $ 94.1 | $ (207.6) | $ (186.5) |
Other comprehensive income (loss), derivatives qualifying as hedges, tax | 9.8 | (16) | (24.9) |
Other comprehensive income (loss), pension and other postretirement benefit plans, tax | $ 22.2 | $ 43.2 | $ (36.6) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) shares in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and equivalents | $ 4,579,300,000 | $ 2,583,800,000 |
Accounts and notes receivable | 2,488,000,000 | 2,115,000,000 |
Inventories, at cost, not in excess of market | 52,800,000 | 52,000,000 |
Prepaid expenses and other current assets | 866,300,000 | 673,400,000 |
Total current assets | 7,986,400,000 | 5,424,200,000 |
Other assets | ||
Investments in and advances to affiliates | 1,080,200,000 | 1,064,500,000 |
Goodwill | 3,040,400,000 | 2,900,400,000 |
Miscellaneous | 5,617,800,000 | 4,707,200,000 |
Total other assets | 9,738,400,000 | 8,672,100,000 |
Property and equipment | ||
Property and equipment, at cost | 43,570,000,000 | 41,037,600,000 |
Accumulated depreciation and amortization | (18,662,400,000) | (17,264,000,000) |
Net property and equipment | 24,907,600,000 | 23,773,600,000 |
Total assets | 56,146,800,000 | 50,435,600,000 |
Current liabilities | ||
Debt, Current | 2,192,400,000 | 0 |
Accounts payable | 1,102,900,000 | 980,200,000 |
Income taxes | 705,100,000 | 274,900,000 |
Other taxes | 268,000,000 | 255,100,000 |
Accrued interest | 468,900,000 | 393,400,000 |
Accrued payroll and other liabilities | 1,433,600,000 | 1,237,400,000 |
Total current liabilities | 6,859,000,000 | 3,802,100,000 |
Long-term debt | 37,152,900,000 | 35,903,500,000 |
Long-term income taxes | 363,200,000 | 791,900,000 |
Deferred revenues - initial franchise fees | 790,100,000 | 757,800,000 |
Other long-term liabilities | 949,700,000 | 1,051,800,000 |
Deferred income taxes | $ 1,680,900,000 | 1,997,500,000 |
Preferred stock, issued | 0 | |
Shareholders' equity (deficit) | ||
Preferred stock, no par value; authorized – 165.0 million shares; issued – none | $ 0 | 0 |
Common stock, $.01 par value; authorized – 3.5 billion shares; issued – 1,660.6 million shares | 16,600,000 | 16,600,000 |
Additional paid-in capital | 8,892,900,000 | 8,547,100,000 |
Retained earnings | 63,479,900,000 | 59,543,900,000 |
Accumulated other comprehensive income (loss) | (2,456,000,000) | (2,486,600,000) |
Common stock in treasury, at cost; 937.9 and 915.8 million shares | (74,640,100,000) | (71,624,400,000) |
Total shareholders' equity (deficit) | (4,706,700,000) | (6,003,400,000) |
Total liabilities and shareholders' equity (deficit) | 56,146,800,000 | 50,435,600,000 |
Revision of Prior Period, Adjustment [Member] | ||
Other assets | ||
Lease right-of-use asset, net | 13,514,400,000 | 12,565,700,000 |
Current liabilities | ||
Lease liability | 688,100,000 | 661,100,000 |
Long-term lease liability | $ 13,057,700,000 | $ 12,134,400,000 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, authorized | 165,000 | 165,000 |
Preferred stock, issued | 0 | |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 3,500,000 | 3,500,000 |
Common stock, issued | 1,660,600 | 1,660,600 |
Common stock in treasury, shares | 937,900 | 929,300 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
Net income | $ 8,468.8 | $ 6,177.4 | $ 7,545.2 |
Charges and credits: | |||
Depreciation and amortization | 1,978.2 | 1,870.6 | 1,868.1 |
Deferred income taxes | (686.4) | (345.7) | (428.3) |
Share-based compensation expense | 175.2 | 166.7 | 139.2 |
Net (gain) loss on sale of restaurant and other businesses | (103.2) | 732.7 | (97.8) |
Other | (112.7) | (570.4) | (339.1) |
Changes in working capital items: | |||
Accounts receivable | (161) | (264.1) | 309.9 |
Inventories, prepaid expenses and other current assets | 16.7 | 5.6 | (62.2) |
Accounts payable | 50.4 | 31.3 | 225 |
Income taxes | (220.3) | (546.7) | (302.5) |
Other accrued liabilities | 206.2 | 129.3 | 284 |
Cash provided by operations | 9,611.9 | 7,386.7 | 9,141.5 |
Investing activities | |||
Capital expenditures | (2,357.4) | (1,899.2) | (2,040) |
Purchases of restaurant businesses | (441.2) | (807) | (374.2) |
Sales of restaurant and other businesses | 195.3 | 445.9 | 196.2 |
Sales of property | 94.9 | 38.9 | 106.2 |
Other | (676.1) | (456.7) | (53.9) |
Cash used for investing activities | (3,184.5) | (2,678.1) | (2,165.7) |
Financing activities | |||
Net short-term borrowings | 212.8 | 25.5 | 15.1 |
Long-term financing issuances | 5,221.1 | 3,374.5 | 1,154.4 |
Long-term financing repayments | (2,441.1) | (2,202.4) | (2,240) |
Treasury stock purchases | (3,054.3) | (3,896) | (845.5) |
Common stock dividends | (4,532.8) | (4,168.2) | (3,918.6) |
Proceeds from stock option exercises | 259.8 | 248.2 | 285.7 |
Other | (39.6) | 38.2 | (46.7) |
Cash used for financing activities | (4,374.1) | (6,580.2) | (5,595.6) |
Effect of exchange rates on cash and equivalents | (57.8) | (253.8) | (120.1) |
Cash and equivalents increase (decrease) | 1,995.5 | (2,125.4) | 1,260.1 |
Cash and equivalents at beginning of year | 2,583.8 | 4,709.2 | 3,449.1 |
Cash and equivalents at end of year | 4,579.3 | 2,583.8 | 4,709.2 |
Supplemental cash flow disclosures | |||
Interest Paid | 1,286.9 | 1,183.5 | 1,197.3 |
Income taxes paid | $ 2,992.9 | $ 3,023.5 | $ 2,403.9 |
Consolidated Statement of Share
Consolidated Statement of Shareholders Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock issued | Additional paid-in capital | Retained earnings | Pensions | Cash flow hedges | Foreign currency translation | Common stock in treasury |
Beginning Balance (in shares) at Dec. 31, 2020 | 1,660.6 | 915.2 | ||||||
Beginning Balance at Dec. 31, 2020 | $ (7,824.9) | $ 16.6 | $ 7,903.6 | $ 53,908.1 | $ (287.6) | $ (111.3) | $ (2,187.9) | $ (67,066.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 7,545.2 | 7,545.2 | ||||||
Other comprehensive income (loss), net of tax | 13.1 | 108.1 | 86.5 | (181.5) | ||||
Comprehensive income | 7,558.3 | |||||||
Common stock cash dividends | (3,918.6) | (3,918.6) | ||||||
Treasury stock purchases (in shares) | (3.4) | |||||||
Treasury stock purchases | (845.5) | $ (845.5) | ||||||
Share-based compensation | 139.2 | 139.2 | ||||||
Stock option exercises and other (in shares) | 2.8 | |||||||
Stock option exercises and other | 290.5 | 188.8 | $ 101.7 | |||||
Ending Balance (in shares) at Dec. 31, 2021 | 1,660.6 | 915.8 | ||||||
Ending Balance at Dec. 31, 2021 | (4,601) | $ 16.6 | 8,231.6 | 57,534.7 | (179.5) | (24.8) | (2,369.4) | $ (67,810.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 6,177.4 | 6,177.4 | ||||||
Other comprehensive income (loss), net of tax | 87.1 | (118.7) | 55.5 | 150.3 | ||||
Comprehensive income | 6,264.5 | |||||||
Common stock cash dividends | (4,168.2) | (4,168.2) | ||||||
Treasury stock purchases (in shares) | (15.8) | |||||||
Treasury stock purchases | (3,896) | $ (3,896) | ||||||
Share-based compensation | 166.7 | 166.7 | ||||||
Stock option exercises and other (in shares) | 2.3 | |||||||
Stock option exercises and other | 230.6 | 148.8 | $ 81.8 | |||||
Ending Balance (in shares) at Dec. 31, 2022 | 1,660.6 | 929.3 | ||||||
Ending Balance at Dec. 31, 2022 | (6,003.4) | $ 16.6 | 8,547.1 | 59,543.9 | (298.2) | 30.7 | (2,219.1) | $ (71,624.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 8,468.8 | 8,468.8 | ||||||
Other comprehensive income (loss), net of tax | 30.6 | (69.1) | (36.4) | 136.1 | ||||
Comprehensive income | 8,499.4 | |||||||
Common stock cash dividends | (4,532.8) | (4,532.8) | ||||||
Treasury stock purchases (in shares) | (11.1) | |||||||
Treasury stock purchases | (3,105.1) | $ (3,105.1) | ||||||
Share-based compensation | 175.2 | 175.2 | ||||||
Stock option exercises and other (in shares) | 2.5 | |||||||
Stock option exercises and other | 260 | 170.6 | $ 89.4 | |||||
Ending Balance (in shares) at Dec. 31, 2023 | 1,660.6 | 937.9 | ||||||
Ending Balance at Dec. 31, 2023 | $ (4,706.7) | $ 16.6 | $ 8,892.9 | $ 63,479.9 | $ (367.3) | $ (5.7) | $ (2,083) | $ (74,640.1) |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock cash dividends (in dollars per share) | $ 6.23 | $ 5.66 | $ 5.25 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies NATURE OF BUSINESS The Company franchises and operates McDonald’s restaurants in the global restaurant industry. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchised arrangements, and developmental licensees or affiliates under license agreements. The following table presents restaurant information by ownership type: Restaurants at December 31, 2023 2022 2021 Conventional franchised 21,818 21,720 21,607 Developmental licensed 8,684 8,229 7,913 Foreign affiliated 9,178 8,220 7,775 Total Franchised 39,680 38,169 37,295 Company-operated 2,142 2,106 2,736 Total Systemwide restaurants 41,822 40,275 40,031 The results of operations of restaurant businesses purchased and sold in transactions with franchisees were not material either individually or in the aggregate to the consolidated financial statements for periods prior to purchase and sale. CONSOLIDATION The consolidated financial statements include the accounts of the Company and its subsidiaries. Investments in affiliates owned 50% or less (primarily McDonald’s China and Japan) are accounted for by the equity method. On an ongoing basis, the Company evaluates its business relationships such as those with franchisees, joint venture partners, developmental licensees, suppliers and advertising cooperatives to identify potential variable interest entities. Generally, these businesses qualify for a scope exception under the variable interest entity consolidation guidance. The Company has concluded that consolidation of any such entity is not appropriate for the periods presented. ESTIMATES IN FINANCIAL STATEMENTS The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. FOREIGN CURRENCY TRANSLATION Generally, the functional currency of operations outside the U.S. is the respective local currency. RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements Not Yet Adopted Segment Reporting In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). The pronouncement expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. We are currently in the process of determining the impact that ASU 2023-07 will have on the Company's consolidated financial statement disclosures. Income Taxes In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"). The pronouncement expands the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. We are currently in the process of determining the impact that ASU 2023-09 will have on the Company's consolidated financial statement disclosures. REVENUE RECOGNITION The Company's revenues consist of sales by Company-operated restaurants and fees from restaurants operated by franchisees, developmental licensees and affiliates. Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales with minimum rent payments, and initial fees. Revenues from restaurants licensed to developmental licensees and affiliates include a royalty based on a percent of sales, and generally include initial fees. The Company’s Other revenues are comprised of fees paid by franchisees to recover a portion of costs incurred by the Company for various technology platforms, revenues from brand licensing arrangements to market and sell consumer packaged goods using the McDonald’s brand and third-party revenues for the Dynamic Yield business, for periods prior to its sale on April 1, 2022. Sales by Company-operated restaurants are recognized on a cash basis at the time of the underlying sale and are presented net of sales tax and other sales-related taxes. Royalty revenues are based on a percent of sales and recognized at the time the underlying sales occur. Rental income includes both minimum rent payments, which are recognized straight-line over the franchise term and variable rent payments based on a percent of sales, which are recognized at the time the underlying sales occur. Initial fees are recognized as the Company satisfies the performance obligation over the franchise term, which is generally 20 years. The Company provides goods or services related to various technology platforms to certain franchisees that are distinct from the franchise agreement because they do not require integration with other goods or services that the Company provides. The Company has determined that it is the principal in these arrangements. Accordingly, the related revenue is presented on a gross basis on the Consolidated Statement of Income. These revenues are recognized as the goods or services are transferred to the franchisee, and related expenses are recognized as incurred. Brand licensing arrangement revenues are based on a percent of sales and are recognized at the time the underlying sales occur. For periods prior to April 1, 2022, Dynamic Yield third party revenues were generated from providing software as a service solutions to customers and were recognized over the applicable subscription period as the service was performed. PROPERTY AND EQUIPMENT Property and equipment are stated at cost, with depreciation and amortization provided using the straight-line method over the following estimated useful lives: buildings–up to 40 years; leasehold improvements–the lesser of useful lives of assets or lease terms, which generally include certain option periods; and equipment–3 to 12 years. The Company periodically reviews these lives relative to physical factors, economic factors and industry trends. If there are changes in the planned use of property and equipment, or if technological changes occur more rapidly than anticipated, the useful lives assigned to these assets may need to be shortened, resulting in the accelerated recognition of depreciation and amortization expense or write-offs in future periods. The Company may share in the cost of certain restaurant improvements with its franchisees. Since McDonald's manages the project and provides up front funding in these instances, during the project the Company estimates which costs are the responsibility of McDonald's and which are the responsibility of the franchisee, and allocates the corresponding costs between Property and equipment and Accounts receivable. Upon the completion of the project, the allocation of costs is finalized and may result in immaterial adjustments to the balances and associated depreciation expense. Refer to the Property and Equipment footnote on page 50 of this Form 10-K for additional information. LEASING The Company is the lessee in a significant real estate portfolio, primarily through ground leases (the Company leases the land and generally owns the building) and through improved leases (the Company leases the land and buildings). The Lease right-of-use asset and Lease liability reflect the present value of the Company’s estimated future minimum lease payments over the lease term, which includes options that are reasonably assured of being exercised, discounted using the rate implicit in each lease, if determinable, or a collateralized incremental borrowing rate considering the term of the lease and particular currency environment. Leases with an initial term of 12 months or less, primarily related to leases of office equipment, are not included in the Lease right-or-use asset or Lease liability and continue to be recognized in the Consolidated Statement of Income on a straight-line basis over the lease term. The Company has elected not to separate non-lease components from lease components in its lessee portfolio. To the extent that occupancy costs, such as site maintenance, are included in the asset and liability, the impact is immaterial and is generally limited to Company-owned restaurant locations. For franchised locations, which represent the majority of the restaurant portfolio, the related occupancy costs including property taxes, insurance and site maintenance are generally required to be paid by the franchisees as part of the franchise arrangement. In addition, the Company is the lessee under non-restaurant related leases such as office buildings, vehicles and office equipment. These leases are not a material subset of the Company’s lease portfolio. CAPITALIZED SOFTWARE Capitalized software is stated at cost and amortized using the straight-line method over the estimated useful life of the software, which primarily ranges from 3 to 10 years. Customer facing software is typically amortized over a shorter useful life, while back office and Corporate systems may have a longer useful life. Capitalized software less accumulated amortization is recorded within Miscellaneous other assets on the Consolidated Balance Sheet and was (in millions): 2023-$836.0; 2022-$864.3; 2021-$795.0. The Company reviews capitalized software for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or if an indicator of impairment exists, which occurs more regularly throughout the year, such as when new software may be ready for its intended use. Results for the year ended December 31, 2023 reflected the write-off of impaired software no longer in use of $71.7 million. The Company did not identify any indicators of material impairment of capitalized software for the years ended December 31, 2022 and 2021. LONG-LIVED ASSETS Long-lived assets are reviewed for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of annually reviewing McDonald’s restaurant assets for potential impairment, assets are initially grouped together in the U.S. at a field office level, and internationally, at a market level. The Company manages its restaurants as a group or portfolio with significant common costs and promotional activities; as such, an individual restaurant’s cash flows are not generally independent of the cash flows of others in a market. If an indicator of impairment exists for any grouping of assets, an estimate of undiscounted future cash flows produced by each individual restaurant within the asset grouping is compared to its carrying value. If an individual restaurant is determined to be impaired, the loss is measured by the excess of the carrying amount of the restaurant over its fair value as determined by an estimate of discounted future cash flows. Losses on assets held for disposal are recognized when management and the Company's Board of Directors, as required, have approved and committed to a plan to dispose of the assets, the assets are available for disposal and the disposal is probable of occurring within 12 months, and the net sales proceeds are expected to be less than its net book value, among other factors. Generally, such losses are related to restaurants that have closed and ceased operations as well as other assets that meet the criteria to be considered “held for sale." GOODWILL Goodwill represents the excess of cost over the net tangible assets and identifiable intangible assets of acquired restaurants and other businesses, and it is generally assigned to the reporting unit (defined as each individual market) expected to benefit from the synergies of the combination. The Company's goodwill primarily results from purchases of McDonald's restaurants from franchisees or transactions in which the Company obtains a controlling interest in subsidiaries or affiliates. When purchasing restaurants from a franchisee, the Company generally uses a discounted cash flow methodology (Level 3 inputs within the valuation hierarchy), which determines the fair value of restaurants acquired based on their expected profitability and cash flows. If a Company-operated restaurant is sold within 24 months of acquisition, the goodwill associated with the acquisition is written off in its entirety. If a Company-operated restaurant is sold beyond 24 months from the acquisition, the amount of goodwill written off is based on the relative fair value of the business sold compared to the reporting unit. The following table presents the 2023 activity in goodwill by segment: In millions U.S. International International Developmental Licensed Markets & Corporate Consolidated Balance at December 31, 2022 $ 1,815.2 $ 1,085.2 $ — $ 2,900.4 Net restaurant purchases (sales) 17.7 89.7 — 107.4 Currency translation — 32.6 — 32.6 Balance at December 31, 2023 $ 1,832.9 $ 1,207.5 $ — $ 3,040.4 The Company conducts goodwill impairment testing in the fourth quarter of each year or whenever indicators of impairment exist. If an indicator of impairment exists, the goodwill impairment test compares the fair value of a reporting unit, generally based on discounted future cash flows, with its carrying amount including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recorded for the difference. In the current period, the Company performed a qualitative assessment and did not identify any indicators of impairment. Historically, goodwill impairment has not significantly impacted the consolidated financial statements. Goodwill on the Consolidated Balance Sheet reflects accumulated impairment losses of $14.5 million as of December 31, 2023 and 2022. ADVERTISING COSTS Advertising costs included in operating expenses of Company-operated restaurants primarily consist of contributions to advertising cooperatives based upon a percent of sales, and were (in millions): 2023–$347.2; 2022–$334.5; 2021–$377.6. In addition, significant advertising costs are incurred by conventional franchisees through contributions to advertising cooperatives in individual markets that are also based upon a percent of sales. In the markets that make up the vast majority of the Systemwide advertising spend, including the U.S., McDonald’s is not the primary beneficiary of these entities, and therefore has concluded that consolidation would not be appropriate, as the Company does not have the power through voting or similar rights to direct the activities of the cooperatives that most significantly impact their economic performance. Production costs for radio and television advertising are expensed when the commercials are initially aired. These production costs, primarily in the U.S., as well as other marketing-related expenses are included in Selling, general & administrative expenses and were (in millions): 2023–$41.7; 2022–$63.8; 2021–$82.9. INCOME TAXES Income Tax Uncertainties The Company, like other multi-national companies, is regularly audited by federal, state and foreign tax authorities, and tax assessments may arise several years after tax returns have been filed. Accordingly, tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition. For tax positions that meet the more likely than not threshold, a tax liability may still be recorded depending on management’s assessment of how the tax position will ultimately be settled. The Company records interest and penalties on unrecognized tax benefits in the provision for income taxes. Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the financial reporting basis and the tax basis of existing assets and liabilities. The Company records a valuation allowance to reduce its deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. While the Company has considered future taxable income and ongoing prudent and feasible tax strategies, including the sale of appreciated assets, in assessing the need for the valuation allowance, if these estimates and assumptions change in the future, the Company may be required to adjust its valuation allowance. This could result in a charge to, or an increase in, income in the period such determination is made. Refer to the Income Taxes footnote on page 55 of this Form 10-K for additional information. Accounting for Global Intangible Low-Taxed Income ("GILTI") The accounting policy of the Company is to record any tax on GILTI in the provision for income taxes in the year it is incurred. FAIR VALUE MEASUREMENTS The Company measures certain financial assets and liabilities at fair value on a recurring basis, and certain non-financial assets and liabilities on a nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: ▪ Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. ▪ Level 2 – inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. ▪ Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. Certain of the Company’s derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves, option volatilities and foreign currency rates, classified as Level 2 within the valuation hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or the Company. ▪ Certain Financial Assets and Liabilities Measured at Fair Value The following tables present financial assets and liabilities measured at fair value on a recurring basis by the valuation hierarchy as defined in the fair value guidance: December 31, 2023 In millions Level 1 (1) Level 2 Total Carrying Investments $ 191.5 $ 191.5 Derivative assets $ 188.6 $ 20.7 $ 209.3 Derivative liabilities $ (118.2) $ (118.2) December 31, 2022 In millions Level 1 (1) Level 2 Total Carrying Derivative assets $ 200.5 $ 82.0 $ 282.5 Derivative liabilities $ (141.7) $ (141.7) (1) Level 1 is comprised of derivatives and investments that hedge market driven changes in liabilities associated with the Company’s supplemental benefit plans. ▪ Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). For the years ended December 31, 2023 and 2022, the Company did not record any material fair value adjustments to long-lived assets (including goodwill). ▪ Certain Financial Assets and Liabilities not Measured at Fair Value At December 31, 2023, the fair value of the Company’s debt obligations was estimated at $38.4 billion, compared to a carrying amount of $39.3 billion. The fair value of debt obligations is based upon quoted market prices, classified as Level 2 within the valuation hierarchy. The carrying amount of cash and equivalents and notes receivable approximate fair value. SHARE-BASED COMPENSATION The Company has a share-based compensation plan, which authorizes the granting of various equity-based incentives including stock options and restricted stock units (“RSUs”) to employees and nonemployee directors. Share-based compensation, which includes the portion vesting of all share-based awards granted based on the grant date fair value, is generally amortized on a straight-line basis over the vesting period in Selling, general & administrative expenses. The fair value of each stock option granted is estimated on the date of grant using a closed-form pricing model. The pricing model requires assumptions, which impact the assumed fair value, including the expected life of the stock option, the risk-free interest rate, expected volatility of the Company’s stock over the expected life and the expected dividend yield. The Company uses historical data to determine these assumptions and if these assumptions change significantly for future grants, share-based compensation expense will fluctuate in future years. In addition, the Company estimates forfeitures when determining the amount of compensation costs to be recognized each period. The fair value of each RSU granted is equal to the market price of the Company’s stock at date of grant. For performance-based RSUs, the Company includes a relative Total Shareholder Return ("TSR") modifier to determine the number of shares earned at the end of the performance period. The fair value of performance-based RSUs that include the TSR modifier is determined using a Monte Carlo valuation model. Refer to the Share-based Compensation footnote on page 59 of this Form 10-K for additional information. PER COMMON SHARE INFORMATION Diluted earnings per common share is calculated using net income divided by diluted weighted-average shares. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of share-based compensation calculated using the treasury stock method, of (in millions of shares): 2023–4.4; 2022–4.8; 2021–5.5. Share-based compensation awards that were not included in diluted weighted-average shares because they would have been antidilutive were (in millions of shares): 2023–2.0; 2022–1.5; 2021–2.2. CASH AND EQUIVALENTS |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information McDonald’s operates under an organizational structure with the following global business segments reflecting how management reviews and evaluates operating performance: • U.S. - the Company’s largest market. The segment is 95% franchised as of December 31, 2023. • International Operated Markets - comprised of markets, or countries in which the Company operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, Poland, Spain and the U.K. The segment is 89% franchised as of December 31, 2023. • International Developmental Licensed Markets & Corporate - comprised primarily of developmental licensee and affiliate markets in the McDonald’s system. Corporate activities are also reported in this segment. The segment is 98% franchised as of December 31, 2023. In December 2021 and April 2022, the Company completed the divestitures of Apprente (McD Tech Labs) and Dynamic Yield, respectively. Additionally, in June 2022, the Company sold its business in Russia. Prior to their respective dates of sale, financial performance relating to Dynamic Yield and McD Tech Labs is reflected within the International Developmental Licensed Markets & Corporate segment and financial performance relating to Russia is reflected in the International Operated Markets segment. All intercompany revenues and expenses are eliminated in computing revenues and operating income. Corporate general and administrative expenses consist of corporate office support costs in areas such as facilities, finance, human resources, information technology, legal, marketing, restaurant operations, supply chain and training. Corporate assets include corporate cash and equivalents, financial instruments and office facilities. In millions 2023 2022 2021 U.S. $ 10,568.4 $ 9,588.4 $ 8,865.0 International Operated Markets 12,382.0 11,297.0 12,219.8 International Developmental Licensed Markets & Corporate 2,543.3 2,297.2 2,138.1 Total revenues $ 25,493.7 $ 23,182.6 $ 23,222.9 U.S. $ 5,694.4 $ 5,136.4 $ 4,754.7 International Operated Markets 5,831.5 3,926.0 5,130.6 International Developmental Licensed Markets & Corporate 120.8 308.6 470.7 Total operating income $ 11,646.7 $ 9,371.0 $ 10,356.0 U.S. $ 22,477.0 $ 21,793.0 $ 21,280.3 International Operated Markets 23,946.9 21,979.3 24,186.1 International Developmental Licensed Markets & Corporate 9,722.9 6,663.3 8,387.9 Total assets $ 56,146.8 $ 50,435.6 $ 53,854.3 U.S. $ 962.5 $ 860.0 $ 940.7 International Operated Markets 1,340.5 1,015.2 1,050.6 International Developmental Licensed Markets & Corporate 54.4 24.0 48.7 Total capital expenditures $ 2,357.4 $ 1,899.2 $ 2,040.0 U.S. $ 968.9 $ 912.4 $ 840.7 International Operated Markets 679.5 640.6 726.4 International Developmental Licensed Markets & Corporate 329.8 317.6 301.0 Total depreciation and amortization $ 1,978.2 $ 1,870.6 $ 1,868.1 Total long-lived assets, primarily property and equipment and the Company's Lease right-of-use asset, were (in millions)–Consolidated: 2023–$39,477.8; 2022–$37,403.0; U.S. based: 2023–$19,943.9; 2022–$19,416.3. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Net property and equipment consisted of: In millions ' December 31, 2023 2022 Land $ 7,081.3 $ 6,686.3 Buildings and improvements on owned land 20,059.3 18,934.2 Buildings and improvements on leased land 13,322.3 12,492.0 Equipment, signs and seating 2,692.7 2,498.6 Other 414.4 426.5 Property and equipment, at cost 43,570.0 41,037.6 Accumulated depreciation and amortization (18,662.4) (17,264.0) Net property and equipment $ 24,907.6 $ 23,773.6 |
Franchise Arrangements
Franchise Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Lessor Disclosure [Abstract] | |
Franchise Arrangements | Franchise Arrangements Conventional franchise arrangements generally include a lease and a license and provide for payment of initial fees, as well as continuing rent and royalties to the Company based upon a percent of sales with minimum rent payments. Minimum rent payments are based on the Company's underlying investment in owned sites and parallel the Company’s underlying leases and escalations on properties that are leased. Under the franchise arrangement, franchisees are granted the right to operate a restaurant using the McDonald’s System and, in most cases, the use of a restaurant facility, generally for a period of 20 years. At the end of the 20-year franchise arrangement, the Company maintains control of the underlying real estate and building and can either enter into a new 20-year franchise arrangement with the existing franchisee or a different franchisee, or close the restaurant. Franchisees generally pay related occupancy costs including property taxes, insurance and site maintenance. Developmental licensees and affiliates operating under license agreements pay a royalty to the Company based upon a percent of sales, and generally pay initial fees. McDonald’s has elected to allocate consideration in the franchise contract among lease and non-lease components in the same manner that it has historically: rental income (lease), royalty income (non-lease) and initial fee income (non-lease). This disaggregation and presentation of revenue is based on the nature, amount, timing and certainty of the revenue and cash flows. The allocation has been determined based on a mix of both observable and estimated standalone selling prices (the price at which an entity would sell a promised good or service separately to a customer). Revenues from franchised restaurants consisted of: In millions 2023 2022 2021 Rents $ 9,840.0 $ 9,045.7 $ 8,381.1 Royalties 5,530.9 5,005.6 4,645.1 Initial fees 65.6 54.5 59.2 Revenues from franchised restaurants $ 15,436.5 $ 14,105.8 $ 13,085.4 Future gross minimum rent payments due to the Company under existing conventional franchise arrangements are: In millions Owned sites Leased sites Total 2024 $ 1,511.7 $ 1,468.6 $ 2,980.3 2025 1,470.4 1,407.6 2,878.0 2026 1,417.3 1,350.5 2,767.8 2027 1,370.9 1,294.1 2,665.0 2028 1,312.3 1,223.5 2,535.8 Thereafter 9,108.3 8,227.2 17,335.5 Total minimum payments $ 16,190.9 $ 14,971.5 $ 31,162.4 |
Leasing Arrangements
Leasing Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leasing Arrangements | Leasing Arrangements The Company is the lessee in a significant real estate portfolio, primarily through ground leases (the Company leases the land and generally owns the building) and through improved leases (the Company leases the land and buildings). The Company determines whether an arrangement is a lease at inception. Lease terms for most restaurants, where market conditions allow, are generally for 20 years and, in many cases, provide for rent escalations and renewal options. Renewal options are typically solely at the Company’s discretion. Escalation terms vary by market with examples including fixed-rent escalations, escalations based on an inflation index and fair-value market adjustments. The timing of these escalations generally range from annually to every five years. The following table provides detail of rent expense: In millions 2023 2022 2021 Restaurants $ 1,491.0 $ 1,416.4 $ 1,486.3 Other 51.3 59.7 74.0 Total rent expense $ 1,542.3 $ 1,476.1 $ 1,560.3 Rent expense included percent rents in excess of minimum rents (in millions) as follows–Company-operated restaurants: 2023–$56.1; 2022–$39.6; 2021–$69.2. Franchised restaurants: 2023–$261.4; 2022–$209.0; 2021–$160.0. These variable rent payments are based on a percent of sales. The Lease right-of-use asset and Lease liability reflect the present value of the Company's estimated future minimum lease payments over the lease term, which includes options that are reasonably certain of being exercised, discounted using a collateralized incremental borrowing rate. Typically, renewal options are considered reasonably certain of being exercised if the associated asset lives of the building or leasehold improvements exceed that of the initial lease term, and the sales performance of the restaurant remains strong. Therefore, the Lease right-of-use asset and Lease liability include an assumption on renewal options that have not yet been exercised by the Company, and are not currently a future obligation. In light of the introduction of Restaurant Development as a growth pillar in 2023 and as part of the Company’s ongoing evaluation of its estimates, the Company refined its assumption on renewal options that have not yet been exercised to reflect the expected increase in renewal option exercises under this new growth pillar. This was the primary driver of the increase in the Lease right-of-use asset and Lease liability. The following table details amounts related to operating and finance leases recorded within the Company’s Consolidated Balance Sheet. December 31, 2023 In millions Operating Finance Total Lease right-of use asset, net 11,724.2 1,790.2 13,514.4 Current lease liability 642.6 45.5 688.1 Long-term lease liability 11,527.7 1,530.0 13,057.7 December 31, 2022 In millions Operating Finance Total Lease right-of use asset, net 11,052.1 1,513.6 12,565.7 Current lease liability 639.6 21.5 661.1 Long-term lease liability 10,834.1 1,300.2 12,134.4 As the rate implicit in each lease is not readily determinable, the Company uses an incremental borrowing rate to calculate the lease liability that represents an estimate of the interest rate the Company would incur to borrow on a collateralized basis over the term of a lease within a particular currency environment. The following table summarizes the weighted average remaining lease term and discount rate used for leases as of December 31, 2023 and 2022: 2023 2022 Weighted-average remaining lease term - operating leases 17 years 18 years Weighted-average remaining lease term - finance leases 28 years 29 years Weighted-average discount rate - operating leases 4.0 % 3.6 % Weighted-average discount rate - finance leases 3.6 % 3.0 % The Company makes cash payments related to its operating and finance lease liabilities, of which the majority are recorded within operating activities on the Consolidated Statement of Cash Flows. For each of the three years reflected within its cash flow statement, the Company made total payments of approximately $1.5 billion. Of these total payments, approximately 3% related to the Company’s repayment of the principal portion of finance lease liabilities, and were recorded within financing activities on the Consolidated Statement of Cash Flows. Lease right-of-use assets obtained in exchange for operating and finance lease liabilities totaled approximately $1.0 billion and $0.3 billion, respectively, during the year ended December 31, 2023. As of December 31, 2023, maturities of lease liabilities for the Company's lease portfolio were as follows: In millions Operating Finance Total* 2024 $ 1,126.3 $ 78.0 $ 1,204.3 2025 1,093.7 79.3 1,173.0 2026 1,046.2 80.0 1,126.2 2027 1,018.1 80.6 1,098.7 2028 981.1 81.2 1,062.3 Thereafter 12,132.2 2,083.1 14,215.3 Total lease payments $ 17,397.6 $ 2,482.2 $ 19,879.8 Less: imputed interest 5,227.3 906.7 6,134.0 Present value of lease liability $ 12,170.3 $ 1,575.5 $ 13,745.8 * Total lease payments include option periods that are reasonably certain of being exercised. The increase in the present value of the lease liability since December 31, 2022 is approximately $950 million. The lease liability will continue to be impacted by new leases, lease modifications, lease terminations, reevaluation of lease terms, and foreign currency. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies In the ordinary course of business, the Company is subject to proceedings, lawsuits and other claims primarily related to competitors, customers, employees, franchisees, government agencies, intellectual property, shareholders and suppliers. The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of accrual required, if any, for these contingencies is made after careful analysis of each matter. The required accrual may change in the future due to new developments in a particular matter or changes in approach such as a change in settlement strategy in dealing with these matters. The Company does not believe that any such matter currently being reviewed will have a material adverse effect on its financial condition or results of operations. |
Other Operating (Income) Expens
Other Operating (Income) Expense, Net | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Operating Income and Expense | Other Operating (Income) Expense, Net In millions 2023 2022 2021 Gains on sales of restaurant businesses $ (103.2) $ (59.8) $ (96.6) Equity in earnings of unconsolidated affiliates (153.4) (113.2) (176.7) Asset dispositions and other (income) expense, net (6.8) 136.8 75.4 Impairment and other charges (gains), net 362.3 1,009.8 (285.4) Total $ 98.9 $ 973.6 $ (483.3) ▪ Gains on sales of restaurant businesses The Company’s purchases and sales of businesses with its franchisees are aimed at maintaining an optimal ownership mix in each market. Resulting gains or losses on sales of restaurant businesses are recorded in operating income because these transactions are a recurring part of the Company's business. ▪ Equity in earnings of unconsolidated affiliates Unconsolidated affiliates and partnerships are businesses in which the Company actively participates but does not control. The Company records equity in (earnings) losses from these entities representing McDonald’s share of results for markets in both the International Operated Markets and International Developmental Licensed Markets segments. For foreign affiliated markets—primarily China and Japan—results are reported net of interest expense and income taxes. ▪ Asset dispositions and other (income) expense, net Asset dispositions and other (income) expense, net consists of gains or losses on excess property and other asset dispositions, provisions for restaurant closings, reserves for bad debts, asset write-offs due to restaurant reinvestment, sale of properties, and other miscellaneous income and expenses. ▪ Impairment and other charges (gains), net Impairment and other charges (gains), net includes losses that result from the write down of goodwill and long-lived assets from their carrying value to their fair value, charges associated with strategic initiatives, such as refranchising and restructuring activities, as well as realized gains/losses from the divestiture of ownership percentages of subsidiaries. In 2023 this category reflected $290 million of pre-tax charges related to the Company's Accelerating the Arches growth strategy, including restructuring costs associated with Accelerating the Organization, |
Restructuring and Related Activ
Restructuring and Related Activities | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Accelerating the Organization In January 2023, the Company announced an evolution of its successful Accelerating the Arches strategy. Enhancements to the strategy include the addition of Restaurant Development to the Company’s growth pillars and an internal effort to modernize ways of working, Accelerating the Organization , both of which are aimed at elevating the Company’s performance. Accelerating the Organization is designed to unlock further growth as the Company focuses on becoming faster, more innovative and more efficient for its customers and people. The Company incurred $249.7 million of costs related to Accelerating the Organization for the year ended December 31, 2023. These costs were recorded in the Other operating (income) expense The following table summarizes the balance of accrued expenses related to this strategic initiative (in millions): Employee Termination Benefits Costs to Terminate Contracts Other Related Costs Total 2023 Beginning Balance $ — $ — $ — $ — Restructuring Costs Incurred 110.3 26.9 43.3 180.5 Cash Payments (1.5) (1.4) (0.3) (3.2) Other Non-Cash Items — — (14.1) (14.1) Accrued Balance at March 31, 2023 $ 108.8 $ 25.5 $ 28.9 $ 163.2 Restructuring Costs Incurred (8.8) 5.6 21.9 18.7 Cash Payments (27.7) (11.7) (46.8) (86.2) Other Non-Cash Items — — (2.5) (2.5) Accrued Balance at June 30, 2023 $ 72.3 $ 19.4 $ 1.5 $ 93.2 Restructuring Costs Incurred (0.9) — 21.4 20.5 Cash Payments (13.0) (7.4) (15.3) (35.7) Other Non-Cash Items (2.5) — 0.1 (2.4) Accrued Balance at September 30, 2023 $ 55.9 $ 12.0 $ 7.7 $ 75.6 Restructuring Costs Incurred (5.0) — 35.0 30.0 Cash Payments (9.6) (0.8) (36.2) (46.6) Other Non-Cash Items — — 0.5 0.5 Accrued Balance at December 31, 2023 $ 41.3 $ 11.2 $ 7.0 $ 59.5 Of the $249.7 million of restructuring costs incurred for the year ended December 31, 2023, $62.4 million was recorded in the U.S., $65.6 million was recorded in the International Operated Markets segment and $121.7 million was recorded in the International Developmental Licensed Markets & Corporate segment, the majority of which was recorded at Corporate. Substantially all of the accrued restructuring balance recorded at December 31, 2023, related to the Company’s Accelerating the Organization initiative, is expected to be paid out over the next twelve months. As the Company furthers its operating model and technology transformation, primarily through its Global Businesses Services strategy, under Accelerating the Organization |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before provision for income taxes, classified by source of income, was as follows: In millions 2023 2022 2021 U.S. $ 3,665.0 $ 1,845.6 $ 2,413.9 Outside the U.S. 6,857.2 5,979.8 6,714.0 Income before provision for income taxes * $ 10,522.2 $ 7,825.4 $ 9,127.9 *Income before provision for income taxes increased in 2023 primarily due to strong operating performance and prior year net charges detailed in the Net Income and Diluted Earnings Per Share section on page 13 of this Form 10-K. The provision for income taxes, classified by the timing and location of payment, was as follows: In millions 2023 2022 2021 U.S. federal $ 1,340.0 $ 517.3 $ 887.6 U.S. state 262.7 246.3 228.1 Outside the U.S. 1,137.1 1,230.1 895.3 Current tax provision 2,739.8 1,993.7 2,011.0 U.S. federal (146.0) (80.0) (177.4) U.S. state (29.6) (46.2) (24.1) Outside the U.S. (510.8) (219.5) (226.8) Deferred tax provision (686.4) (345.7) (428.3) Provision for income taxes $ 2,053.4 $ 1,648.0 $ 1,582.7 Net deferred tax (assets) liabilities consisted of: In millions December 31, 2023 2022 Lease right-of-use asset $ 3,322.5 $ 3,045.0 Property and equipment 1,668.5 1,706.3 Intangible assets 264.0 296.7 Other 284.8 595.4 Total deferred tax liabilities 5,539.8 5,643.4 Lease liability (3,384.0) (3,099.9) Intangible assets (3,018.2) (2,658.9) Property and equipment (641.8) (676.3) Deferred foreign tax credits (81.6) (74.5) Employee benefit plans (191.6) (180.6) Deferred revenue (166.9) (165.8) Operating loss carryforwards (266.5) (76.6) Other (281.0) (267.4) Total deferred tax assets before valuation allowance (8,031.6) (7,200.0) Valuation allowance 1,149.8 1,077.1 Net deferred tax (assets) liabilities $ (1,342.0) $ (479.5) Balance sheet presentation: Deferred income taxes $ 1,680.9 $ 1,997.5 Other assets-miscellaneous (3,022.9) (2,477.0) Net deferred tax (assets) liabilities $ (1,342.0) $ (479.5) At December 31, 2023, the Company had net operating loss carryforwards of $1,112.8 million, of which $924.8 million has an indefinite carryforward. The remainder will expire at various dates from 2024 to 2040. The statutory U.S. federal income tax rate reconciles to the effective income tax rates as follows: 2023 2022 2021 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of related federal income tax benefit 1.8 2.0 1.8 Foreign income taxed at different rates 1.9 1.1 0.9 Tax impact of intercompany transactions (0.7) 0.2 0.1 Global intangible low-tax income ("GILTI") 0.5 0.4 0.3 Foreign-derived intangible income ("FDII") (2.7) (4.2) (2.6) U.S./Foreign tax law changes — — (3.9) Nonoperating expense related to France audit settlement — 1.4 — Other, net (2.3) (0.8) (0.3) Effective income tax rates 19.5 % 21.1 % 17.3 % Results for 2022 reflected $239 million of net tax benefits related to the sale of the Company’s Russia and Dynamic Yield businesses and the unfavorable impact of the non-deductible $537 million of non-operating expense related to the settlement of the tax audit in France. In 2021, U.S./Foreign tax law changes included a $364 million income tax benefit related to the remeasurement of deferred taxes as a result of a change in the U.K. statutory income tax rate. As of December 31, 2023 and 2022, the Company’s gross unrecognized tax benefits totaled $587.7 million and $647.0 million, respectively. After considering the deferred tax accounting impact, it is expected that about $588 million of the total as of December 31, 2023 would favorably affect the effective tax rate if resolved in the Company’s favor. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: In millions 2023 2022 Balance at January 1 $ 647.0 $ 1,504.9 Decreases for positions taken in prior years (82.1) (579.4) Increases for positions taken in prior years 27.5 49.8 Increases for positions related to the current year 40.5 100.3 Settlements with taxing authorities (45.2) (428.1) Lapsing of statutes of limitations — (0.5) Balance at December 31 (1) $ 587.7 $ 647.0 (1) Of this amount, $318.5 million and $619.6 million are included in Long-term income taxes for 2023 and 2022, respectively, and $269.2 million and $27.3 million are included in Income taxes for 2023 and 2022, respectively, on the Consolidated Balance Sheet. The Company is currently under audit with the U.S. Internal Revenue Service (the "IRS") for tax years 2011 through 2018. In February 2023, the Company finalized a settlement agreement with the IRS appeals team related to the disagreed transfer pricing matters for the years 2009 and 2010. All results of this settlement have been reported in the Company's financial statements. As of December 31, 2023, the IRS examination for tax years 2011 and 2012 are awaiting final resolution with the IRS appeals team. The Company has reflected anticipated settlement results in the financial statements. In 2023, the IRS issued a Revenue Agent's Report for the 2013 through 2015 examination period, and the Company's results reflect expected resolution. Examination years 2016 through 2018 remain open as of the end of the period. The Company is also under audit in multiple foreign tax jurisdictions, primarily related to transfer pricing, as well as multiple state tax jurisdictions. While the Company cannot estimate the impact to the effective tax rate, it is reasonably possible that the total amount of unrecognized tax benefits could decrease up to $262 million within the next 12 months. This would be due to the possible resolution of the aforementioned U.S. Federal, foreign and U.S. state tax audits and the expiration of the statute of limitations in multiple tax jurisdictions. During 2023, the Company finalized and settled certain tax examinations and remeasured other income tax reserves based on audit progression. It is reasonably possible that, as a result of audit progression in both the U.S. and foreign tax audits within the next 12 months, there may be new information that causes the Company to reassess the total amount of unrecognized tax benefits recorded. While the Company cannot estimate the impact that new information may have on the unrecognized tax benefit balance, it believes that the liabilities recorded are appropriate and adequate. The Company operates within multiple tax jurisdictions and is subject to audit in these jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2009. The Company accrued $24.9 million and $24.7 million for interest and penalties related to tax matters at December 31, 2023 and 2022, respectively. Costs recognized for interest and penalties related to tax matters in 2023 were immaterial and were $90.5 million and $24.4 million in 2022 and 2021, respectively. These amounts are included in the provision for income taxes. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company's 401(k) Plan is maintained for U.S.-based employees and includes a 401(k) feature, as well as an employer match. The 401(k) feature allows eligible participants to make pre-tax contributions that are matched each pay period (with an annual true-up) through cash contributions. All current account balances, future contributions and related earnings can be invested in nine investment alternatives (including a target date fund series), as well as McDonald’s stock in accordance with each participant’s investment elections. Future participant contributions are limited to 20% investment in McDonald’s stock and participants may not transfer their existing account balance into McDonald’s stock if the transfer would cause the value of their interest in the fund to exceed 20% of their total 401(k) Plan account balance. Participants may choose to make separate investment choices for current account balances and future contributions. The Company also maintains certain unfunded nonqualified supplemental benefit plans that allow participants to (i) make tax-deferred contributions and (ii) receive an annual Company-match allocation that cannot be made under the 401(k) Plan because of IRS limitations. The investment alternatives and returns are based on certain market-rate investment alternatives under the 401(k) Plan, net of expenses. Total liabilities were $402.7 million and $380.0 million at December 31, 2023 and 2022, respectively, and were primarily included in Other long-term liabilities on the Consolidated Balance Sheet. The Company has entered into contracts to hedge market-driven changes in certain of the liabilities. At December 31, 2023, derivatives with a fair value of $188.6 million indexed to the Company’s stock were included in Miscellaneous other assets and an investment totaling $191.5 million indexed to certain market indices was included in Prepaid expenses and other current assets on the Consolidated Balance Sheet. Changes in liabilities for these nonqualified plans and in the fair value of the derivatives and investment are recorded primarily in Selling, general & administrative expenses. Changes in fair value of the derivatives indexed to the Company’s stock are recorded in the income statement because the contracts provide the counterparty with a choice to settle in cash or shares. Total U.S. costs for the 401(k) Plan and nonqualified benefits were immaterial to the Consolidated Income Statement. All other post-retirement benefits and post-employment benefits, both in the U.S. and at our international subsidiaries, were also immaterial to the Consolidated Income Statement. |
Debt Financing
Debt Financing | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Financing | Debt Financing LINE OF CREDIT AGREEMENTS At December 31, 2023, the Company had a line of credit agreement of $4.0 billion, which expires in June 2028. The Company incurs fees of 0.08% per annum on the total commitment, which remained unused. Fees and interest rates on this line are primarily based on the Company's long-term credit rating assigned by Moody’s and Standard & Poor's. In addition, the Company's subsidiaries had unused lines of credit that were primarily uncommitted, short-term and denominated in various currencies at local market rates of interest. The weighted-average interest rate of short-term borrowings was 5.4% at December 31, 2023 (based on $119.9 million of foreign currency bank line borrowings and $347.6 million of commercial paper outstanding) and 5.2% at December 31, 2022 (based on $264.5 million of foreign currency bank line borrowings). DEBT OBLIGATIONS The Company has incurred debt obligations principally through public and private offerings and bank loans. There are no provisions in the Company’s debt obligations that would accelerate repayment of debt as a result of a change in credit ratings or a material adverse change in the Company’s business. Certain of the Company’s debt obligations contain cross-acceleration provisions, and restrictions on Company and subsidiary mortgages and the long-term debt of certain subsidiaries. Under certain agreements, the Company has the option to retire debt prior to maturity, either at par or at a premium over par. The Company has no current plans to retire a significant amount of its debt prior to maturity, but continues to look for ways to optimize its debt portfolio. The following table summarizes the Company’s debt obligations (interest rates and debt amounts reflected in the table include the effects of interest rate swaps used to hedge debt). Interest rates (1) December 31 Amounts outstanding In millions of U.S. Dollars Maturity dates 2023 2022 2023 2022 Fixed 4.2 % 4.0 % $ 23,382.6 $ 22,382.0 Floating 6.9 6.6 1,097.5 750.0 Total U.S. Dollar 2024-2053 24,480.1 23,132.0 Fixed 2.4 1.6 10,780.6 8,704.1 Floating 6.6 5.1 331.2 321.2 Total Euro 2024-2035 11,111.8 9,025.3 Fixed 3.4 3.4 748.8 748.7 Floating 5.5 4.3 204.4 204.4 Total Australian Dollar 2024-2029 953.2 953.1 Total British Pounds Sterling - Fixed 2032-2054 4.1 4.1 1,585.1 1,504.1 Total Canadian Dollar - Fixed 2025 3.1 3.1 754.9 737.3 Total Japanese Yen - Fixed 2030 2.9 2.9 88.6 95.3 Fixed 0.2 0.2 475.4 432.6 Floating 4.9 5.2 118.0 262.7 Total other currencies (2) 2024 593.4 695.3 Debt obligations before fair value adjustments and deferred debt costs (3) 39,567.1 36,142.4 Fair value adjustments (4) (61.8) (91.5) Deferred debt costs (160.0) (147.4) Total debt obligations $ 39,345.3 $ 35,903.5 (1) Weighted-average effective rate, computed on a semi-annual basis. (2) Consists of Swiss Francs and Korean Won. (3) Aggregate maturities for 2023 debt balances, before fair value adjustments and deferred debt costs, are as follows (in millions): 2024–$2,192.4; 2025–$3,092.7; 2026–$2,436.3; 2027–$3,113.0; 2028–$4,293.4; Thereafter-$24,439.3. These amounts include a reclassification of short-term obligations totaling $1.1 billion to long-term obligations as they are supported by a long-term line of credit agreement expiring in June 2028. (4) The carrying value of underlying items in fair value hedges, in this case debt obligations, are adjusted for fair value changes to the extent they are attributable to the risk designated as being hedged. The related hedging instruments are also recorded at fair value on the Consolidated Balance Sheet. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation The Company maintains a share-based compensation plan, which authorizes the granting of various equity-based incentives including stock options and RSUs to employees and nonemployee directors. The number of shares of common stock reserved for issuance under the plan was 32.1 million at December 31, 2023, including 20.4 million available for future grants. Share-based compensation expense and the effect on diluted earnings per common share were as follows: In millions, except per share data 2023 2022 2021 Share-based compensation expense $ 175.2 $ 166.7 $ 139.2 After tax $ 155.4 $ 145.9 $ 120.4 Earnings per common share-diluted $ 0.21 $ 0.20 $ 0.16 As of December 31, 2023, there was $176.5 million of total unrecognized compensation cost related to nonvested share-based compensation that is expected to be recognized over a weighted-average period of 2.0 years. STOCK OPTIONS Stock options to purchase common stock are granted with an exercise price equal to the closing market price of the Company’s stock on the date of grant. Substantially all of the options become exercisable in four equal installments, beginning a year from the date of the grant, and generally expire 10 years from the grant date. The following table presents the weighted-average assumptions used in the option pricing model for the 2023, 2022 and 2021 stock option grants. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends. Expected stock price volatility is generally based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected dividend yield is based on the Company’s most recent annual dividend rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with a term equal to the expected life. Weighted-average assumptions 2023 2022 2021 Expected dividend yield 2.3 % 2.2 % 2.4 % Expected stock price volatility 21.6 % 21.3 % 21.8 % Risk-free interest rate 3.9 % 1.9 % 0.7 % Expected life of options (in years) 5.8 5.7 5.7 Fair value per option granted $ 54.35 $ 42.12 $ 30.91 Intrinsic value for stock options is defined as the difference between the current market value of the Company’s stock and the exercise price. During 2023, 2022 and 2021, the total intrinsic value of stock options exercised was $304.0 million, $242.2 million and $302.0 million, respectively. Cash received from stock options exercised during 2023 was $259.8 million and the tax benefit realized from stock options exercised totaled $69.2 million. The Company uses treasury shares purchased under the Company’s share repurchase program to satisfy share-based exercises. A summary of the status of the Company’s stock option grants as of December 31, 2023, 2022 and 2021, and changes during the years then ended, is presented in the following table: 2023 2022 2021 Options Shares in Weighted- Weighted- Aggregate Shares in Weighted- Shares in Weighted- Outstanding at beginning of year 11.4 $ 172.27 12.0 $ 156.13 13.4 $ 139.44 Granted 1.2 266.70 1.6 252.97 2.1 215.73 Exercised (2.0) 133.76 (1.9) 128.08 (2.4) 115.29 Forfeited/expired (0.1) 244.95 (0.3) 225.93 (1.1) 160.50 Outstanding at end of year 10.5 $ 189.78 5.5 $ 1,116.1 11.4 $ 172.27 12.0 $ 156.13 Exercisable at end of year 7.2 $ 165.22 4.4 $ 951.7 7.7 7.8 RSUs RSUs generally vest 100% on the third anniversary of the grant and are payable in either shares of the Company’s common stock or cash, at the Company’s discretion. The fair value of each RSU granted is equal to the market price of the Company’s stock at date of grant. Separately, Company officers have been awarded RSUs that vest based on Company performance. For performance-based RSUs, the Company includes a relative TSR modifier to determine the number of shares earned at the end of the performance period. The fair value of performance-based RSUs that include the TSR modifier is determined using a Monte Carlo valuation model. A summary of the Company’s RSU activity during the years ended December 31, 2023, 2022 and 2021 is presented in the following table: 2023 2022 2021 RSUs Shares in Weighted- Shares in Weighted- Shares in Weighted- Nonvested at beginning of year 1.2 $ 222.32 1.3 $ 197.10 1.3 $ 176.81 Granted 0.5 255.14 0.5 242.82 0.6 206.92 Vested (0.4) 210.03 (0.4) 173.31 (0.4) 153.55 Forfeited (0.1) 244.58 (0.2) 205.61 (0.2) 168.38 Nonvested at end of year 1.2 $ 238.21 1.2 $ 222.32 1.3 $ 197.10 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. On January 30, 2024, the Company completed the acquisition of an additional 28% ownership stake in the strategic partnership that operates and manages McDonald’s business in mainland China, Hong Kong, and Macau. After acquiring the additional ownership from the global investment firm Carlyle for $1.8 billion, McDonald’s will remain a minority partner while increasing its ownership stake from 20% to 48%. The CITIC Consortium, mainly through its equity affiliate CITIC Capital, will maintain its controlling ownership stake of 52%. McDonald’s will continue to account for its investment under the equity method and will not consolidate the financial statements of the strategic partnership into its results. There were no other subsequent events that required recognition or disclosure. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
NATURE OF BUSINESS | NATURE OF BUSINESS The Company franchises and operates McDonald’s restaurants in the global restaurant industry. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchised arrangements, and developmental licensees or affiliates under license agreements. The following table presents restaurant information by ownership type: Restaurants at December 31, 2023 2022 2021 Conventional franchised 21,818 21,720 21,607 Developmental licensed 8,684 8,229 7,913 Foreign affiliated 9,178 8,220 7,775 Total Franchised 39,680 38,169 37,295 Company-operated 2,142 2,106 2,736 Total Systemwide restaurants 41,822 40,275 40,031 The results of operations of restaurant businesses purchased and sold in transactions with franchisees were not material either individually or in the aggregate to the consolidated financial statements for periods prior to purchase and sale. |
CONSOLIDATION | CONSOLIDATION The consolidated financial statements include the accounts of the Company and its subsidiaries. Investments in affiliates owned 50% or less (primarily McDonald’s China and Japan) are accounted for by the equity method. On an ongoing basis, the Company evaluates its business relationships such as those with franchisees, joint venture partners, developmental licensees, suppliers and advertising cooperatives to identify potential variable interest entities. Generally, these businesses qualify for a scope exception under the variable interest entity consolidation guidance. The Company has concluded that consolidation of any such entity is not appropriate for the periods presented. |
ESTIMATES IN FINANCIAL STATEMENTS | ESTIMATES IN FINANCIAL STATEMENTS The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
FOREIGN CURRENCY TRANSLATION | FOREIGN CURRENCY TRANSLATION Generally, the functional currency of operations outside the U.S. is the respective local currency. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements Not Yet Adopted Segment Reporting In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). The pronouncement expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. We are currently in the process of determining the impact that ASU 2023-07 will have on the Company's consolidated financial statement disclosures. Income Taxes In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"). The pronouncement expands the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. We are currently in the process of determining the impact that ASU 2023-09 will have on the Company's consolidated financial statement disclosures. |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company's revenues consist of sales by Company-operated restaurants and fees from restaurants operated by franchisees, developmental licensees and affiliates. Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales with minimum rent payments, and initial fees. Revenues from restaurants licensed to developmental licensees and affiliates include a royalty based on a percent of sales, and generally include initial fees. The Company’s Other revenues are comprised of fees paid by franchisees to recover a portion of costs incurred by the Company for various technology platforms, revenues from brand licensing arrangements to market and sell consumer packaged goods using the McDonald’s brand and third-party revenues for the Dynamic Yield business, for periods prior to its sale on April 1, 2022. Sales by Company-operated restaurants are recognized on a cash basis at the time of the underlying sale and are presented net of sales tax and other sales-related taxes. Royalty revenues are based on a percent of sales and recognized at the time the underlying sales occur. Rental income includes both minimum rent payments, which are recognized straight-line over the franchise term and variable rent payments based on a percent of sales, which are recognized at the time the underlying sales occur. Initial fees are recognized as the Company satisfies the performance obligation over the franchise term, which is generally 20 years. |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment are stated at cost, with depreciation and amortization provided using the straight-line method over the following estimated useful lives: buildings–up to 40 years; leasehold improvements–the lesser of useful lives of assets or lease terms, which generally include certain option periods; and equipment–3 to 12 years. The Company periodically reviews these lives relative to physical factors, economic factors and industry trends. If there are changes in the planned use of property and equipment, or if technological changes occur more rapidly than anticipated, the useful lives assigned to these assets may need to be shortened, resulting in the accelerated recognition of depreciation and amortization expense or write-offs in future periods. |
LEASING | LEASING The Company is the lessee in a significant real estate portfolio, primarily through ground leases (the Company leases the land and generally owns the building) and through improved leases (the Company leases the land and buildings). The Lease right-of-use asset and Lease liability reflect the present value of the Company’s estimated future minimum lease payments over the lease term, which includes options that are reasonably assured of being exercised, discounted using the rate implicit in each lease, if determinable, or a collateralized incremental borrowing rate considering the term of the lease and particular currency environment. Leases with an initial term of 12 months or less, primarily related to leases of office equipment, are not included in the Lease right-or-use asset or Lease liability and continue to be recognized in the Consolidated Statement of Income on a straight-line basis over the lease term. The Company has elected not to separate non-lease components from lease components in its lessee portfolio. To the extent that occupancy costs, such as site maintenance, are included in the asset and liability, the impact is immaterial and is generally limited to Company-owned restaurant locations. For franchised locations, which represent the majority of the restaurant portfolio, the related occupancy costs including property taxes, insurance and site maintenance are generally required to be paid by the franchisees as part of the franchise arrangement. In addition, the Company is the lessee under non-restaurant related leases such as office buildings, vehicles and office equipment. These leases are not a material subset of the Company’s lease portfolio. |
CAPITALIZED SOFTWARE | CAPITALIZED SOFTWARE Capitalized software is stated at cost and amortized using the straight-line method over the estimated useful life of the software, which primarily ranges from 3 to 10 years. Customer facing software is typically amortized over a shorter useful life, while back office and Corporate systems may have a longer useful life. Capitalized software less accumulated amortization is recorded within Miscellaneous other assets on the Consolidated Balance Sheet and was (in millions): 2023-$836.0; 2022-$864.3; 2021-$795.0. |
LONG-LIVED ASSETS | LONG-LIVED ASSETS Long-lived assets are reviewed for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of annually reviewing McDonald’s restaurant assets for potential impairment, assets are initially grouped together in the U.S. at a field office level, and internationally, at a market level. The Company manages its restaurants as a group or portfolio with significant common costs and promotional activities; as such, an individual restaurant’s cash flows are not generally independent of the cash flows of others in a market. If an indicator of impairment exists for any grouping of assets, an estimate of undiscounted future cash flows produced by each individual restaurant within the asset grouping is compared to its carrying value. If an individual restaurant is determined to be impaired, the loss is measured by the excess of the carrying amount of the restaurant over its fair value as determined by an estimate of discounted future cash flows. Losses on assets held for disposal are recognized when management and the Company's Board of Directors, as required, have approved and committed to a plan to dispose of the assets, the assets are available for disposal and the disposal is probable of occurring within 12 months, and the net sales proceeds are expected to be less than its net book value, among other factors. Generally, such losses are related to restaurants that have closed and ceased operations as well as other assets that meet the criteria to be considered “held for sale." |
GOODWILL | Goodwill represents the excess of cost over the net tangible assets and identifiable intangible assets of acquired restaurants and other businesses, and it is generally assigned to the reporting unit (defined as each individual market) expected to benefit from the synergies of the combination. The Company's goodwill primarily results from purchases of McDonald's restaurants from franchisees or transactions in which the Company obtains a controlling interest in subsidiaries or affiliates. When purchasing restaurants from a franchisee, the Company generally uses a discounted cash flow methodology (Level 3 inputs within the valuation hierarchy), which determines the fair value of restaurants acquired based on their expected profitability and cash flows. If a Company-operated restaurant is sold within 24 months of acquisition, the goodwill associated with the acquisition is written off in its entirety. If a Company-operated restaurant is sold beyond 24 months from the acquisition, the amount of goodwill written off is based on the relative fair value of the business sold compared to the reporting unit. |
ADVERTISING COSTS | ADVERTISING COSTS Advertising costs included in operating expenses of Company-operated restaurants primarily consist of contributions to advertising cooperatives based upon a percent of sales, and were (in millions): 2023–$347.2; 2022–$334.5; 2021–$377.6. In addition, significant advertising costs are incurred by conventional franchisees through contributions to advertising cooperatives in individual markets that are also based upon a percent of sales. In the markets that make up the vast majority of the Systemwide advertising spend, including the U.S., McDonald’s is not the primary beneficiary of these entities, and therefore has concluded that consolidation would not be appropriate, as the Company does not have the power through voting or similar rights to direct the activities of the cooperatives that most significantly impact their economic performance. |
INCOME TAXES | INCOME TAXES Income Tax Uncertainties The Company, like other multi-national companies, is regularly audited by federal, state and foreign tax authorities, and tax assessments may arise several years after tax returns have been filed. Accordingly, tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition. For tax positions that meet the more likely than not threshold, a tax liability may still be recorded depending on management’s assessment of how the tax position will ultimately be settled. The Company records interest and penalties on unrecognized tax benefits in the provision for income taxes. Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the financial reporting basis and the tax basis of existing assets and liabilities. The Company records a valuation allowance to reduce its deferred tax assets if it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. While the Company has considered future taxable income and ongoing prudent and feasible tax strategies, including the sale of appreciated assets, in assessing the need for the valuation allowance, if these estimates and assumptions change in the future, the Company may be required to adjust its valuation allowance. This could result in a charge to, or an increase in, income in the period such determination is made. Refer to the Income Taxes footnote on page 55 of this Form 10-K for additional information. Accounting for Global Intangible Low-Taxed Income ("GILTI") The accounting policy of the Company is to record any tax on GILTI in the provision for income taxes in the year it is incurred. |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company measures certain financial assets and liabilities at fair value on a recurring basis, and certain non-financial assets and liabilities on a nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: ▪ Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. ▪ Level 2 – inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. ▪ Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. Certain of the Company’s derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves, option volatilities and foreign currency rates, classified as Level 2 within the valuation hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or the Company. |
FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency fluctuations. The Company uses foreign currency denominated debt and derivative instruments to mitigate the impact of these changes. The Company does not hold or issue derivatives for trading purposes. The Company documents its risk management objective and strategy for undertaking hedging transactions, as well as all relationships between hedging instruments and hedged items. The Company’s derivatives that are designated for hedge accounting consist mainly of interest rate swaps, foreign currency forwards, and cross-currency interest rate swaps, and are classified as either fair value, cash flow or net investment hedges. Further details are explained in the "Fair Value," "Cash Flow" and "Net Investment" hedge sections. The Company enters into certain derivatives that are not designated for hedge accounting. The Company has entered into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its supplemental benefit plan liabilities. In addition, the Company uses foreign currency forwards to mitigate the change in fair value of certain foreign currency denominated assets and liabilities. Further details are explained in the “Undesignated Derivatives” section. All derivatives (including those not designated for hedge accounting) are recognized on the Consolidated Balance Sheet at fair value and classified based on the instruments’ maturity dates. Changes in the fair value measurements of the derivative instruments are reflected as adjustments to AOCI and/or current earnings. |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Company has a share-based compensation plan, which authorizes the granting of various equity-based incentives including stock options and restricted stock units (“RSUs”) to employees and nonemployee directors. Share-based compensation, which includes the portion vesting of all share-based awards granted based on the grant date fair value, is generally amortized on a straight-line basis over the vesting period in Selling, general & administrative expenses. The fair value of each stock option granted is estimated on the date of grant using a closed-form pricing model. The pricing model requires assumptions, which impact the assumed fair value, including the expected life of the stock option, the risk-free interest rate, expected volatility of the Company’s stock over the expected life and the expected dividend yield. The Company uses historical data to determine these assumptions and if these assumptions change significantly for future grants, share-based compensation expense will fluctuate in future years. In addition, the Company estimates forfeitures when determining the amount of compensation costs to be recognized each period. The fair value of each RSU granted is equal to the market price of the Company’s stock at date of grant. For performance-based RSUs, the Company includes a relative Total Shareholder Return ("TSR") modifier to determine the number of shares earned at the end of the performance period. The fair value of performance-based RSUs that include the TSR modifier is determined using a Monte Carlo valuation model. Refer to the Share-based Compensation footnote on page 59 of this Form 10-K for additional information. |
PER COMMON SHARE INFORMATION | PER COMMON SHARE INFORMATION |
CASH AND EQUIVALENTS | CASH AND EQUIVALENTS |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Restaurant Information by Ownership Type | The following table presents restaurant information by ownership type: Restaurants at December 31, 2023 2022 2021 Conventional franchised 21,818 21,720 21,607 Developmental licensed 8,684 8,229 7,913 Foreign affiliated 9,178 8,220 7,775 Total Franchised 39,680 38,169 37,295 Company-operated 2,142 2,106 2,736 Total Systemwide restaurants 41,822 40,275 40,031 |
Activity in Goodwill by Segment | The following table presents the 2023 activity in goodwill by segment: In millions U.S. International International Developmental Licensed Markets & Corporate Consolidated Balance at December 31, 2022 $ 1,815.2 $ 1,085.2 $ — $ 2,900.4 Net restaurant purchases (sales) 17.7 89.7 — 107.4 Currency translation — 32.6 — 32.6 Balance at December 31, 2023 $ 1,832.9 $ 1,207.5 $ — $ 3,040.4 |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present financial assets and liabilities measured at fair value on a recurring basis by the valuation hierarchy as defined in the fair value guidance: December 31, 2023 In millions Level 1 (1) Level 2 Total Carrying Investments $ 191.5 $ 191.5 Derivative assets $ 188.6 $ 20.7 $ 209.3 Derivative liabilities $ (118.2) $ (118.2) December 31, 2022 In millions Level 1 (1) Level 2 Total Carrying Derivative assets $ 200.5 $ 82.0 $ 282.5 Derivative liabilities $ (141.7) $ (141.7) (1) Level 1 is comprised of derivatives and investments that hedge market driven changes in liabilities associated with the Company’s supplemental benefit plans. |
Fair Values of Derivative Instruments Included on Consolidated Balance Sheet | The following table presents the fair values of derivative instruments included on the Consolidated Balance Sheet as of December 31, 2023 and 2022: Derivative Assets Derivative Liabilities In millions Balance Sheet Classification 2023 2022 Balance Sheet Classification 2023 2022 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 8.5 $ 53.3 Accrued payroll and other liabilities $ (37.3) $ (17.9) Interest rate Prepaid expenses and other current assets 4.3 $ — Accrued payroll and other liabilities (3.6) — Foreign currency Miscellaneous other assets 2.4 28.7 Other long-term liabilities (14.3) (30.7) Interest rate Miscellaneous other assets — — Other long-term liabilities (58.2) (91.5) Total derivatives designated as hedging instruments $ 15.2 $ 82.0 $ (113.4) $ (140.1) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ — $ 200.5 Accrued payroll and other liabilities Foreign currency Prepaid expenses and other current assets 5.5 — Accrued payroll and other liabilities (4.8) (1.6) Equity Miscellaneous other assets 188.6 — Total derivatives not designated as hedging instruments $ 194.1 $ 200.5 $ (4.8) $ (1.6) Total derivatives $ 209.3 $ 282.5 $ (118.2) $ (141.7) |
Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income | The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the year ended December 31, 2023 and 2022, respectively: Location of gain or loss Gain (loss) Gain (loss) reclassified Gain (loss) recognized in In millions 2023 2022 2023 2022 2023 2022 Foreign currency Nonoperating income/expense $ (39.7) $ 122.5 $ 20.2 $ 137.8 Interest rate Interest expense 14.6 83.9 0.9 (2.9) Cash flow hedges $ (25.1) $ 206.4 $ 21.1 $ 134.9 Foreign currency denominated debt Nonoperating income/expense $ (435.2) $ 902.8 Foreign currency derivatives Nonoperating income/expense 40.1 (12.0) Foreign currency derivatives (1) Interest expense $ 25.8 $ 11.2 Net investment hedges $ (395.1) $ 890.8 $ 25.8 $ 11.2 Foreign currency Nonoperating income/expense $ 4.3 $ 9.3 Equity Selling, general & administrative expenses 26.8 (9.3) Undesignated derivatives $ 31.1 (1) The amount of gain (loss) recognized in income related to components excluded from effectiveness testing. |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Revenues and Operating Income by Geographic Segment | In millions 2023 2022 2021 U.S. $ 10,568.4 $ 9,588.4 $ 8,865.0 International Operated Markets 12,382.0 11,297.0 12,219.8 International Developmental Licensed Markets & Corporate 2,543.3 2,297.2 2,138.1 Total revenues $ 25,493.7 $ 23,182.6 $ 23,222.9 U.S. $ 5,694.4 $ 5,136.4 $ 4,754.7 International Operated Markets 5,831.5 3,926.0 5,130.6 International Developmental Licensed Markets & Corporate 120.8 308.6 470.7 Total operating income $ 11,646.7 $ 9,371.0 $ 10,356.0 U.S. $ 22,477.0 $ 21,793.0 $ 21,280.3 International Operated Markets 23,946.9 21,979.3 24,186.1 International Developmental Licensed Markets & Corporate 9,722.9 6,663.3 8,387.9 Total assets $ 56,146.8 $ 50,435.6 $ 53,854.3 U.S. $ 962.5 $ 860.0 $ 940.7 International Operated Markets 1,340.5 1,015.2 1,050.6 International Developmental Licensed Markets & Corporate 54.4 24.0 48.7 Total capital expenditures $ 2,357.4 $ 1,899.2 $ 2,040.0 U.S. $ 968.9 $ 912.4 $ 840.7 International Operated Markets 679.5 640.6 726.4 International Developmental Licensed Markets & Corporate 329.8 317.6 301.0 Total depreciation and amortization $ 1,978.2 $ 1,870.6 $ 1,868.1 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Net Property and Equipment | Net property and equipment consisted of: In millions ' December 31, 2023 2022 Land $ 7,081.3 $ 6,686.3 Buildings and improvements on owned land 20,059.3 18,934.2 Buildings and improvements on leased land 13,322.3 12,492.0 Equipment, signs and seating 2,692.7 2,498.6 Other 414.4 426.5 Property and equipment, at cost 43,570.0 41,037.6 Accumulated depreciation and amortization (18,662.4) (17,264.0) Net property and equipment $ 24,907.6 $ 23,773.6 |
Franchise Arrangements (Tables)
Franchise Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lessor Disclosure [Abstract] | |
Revenues from Franchised Restaurants | Revenues from franchised restaurants consisted of: In millions 2023 2022 2021 Rents $ 9,840.0 $ 9,045.7 $ 8,381.1 Royalties 5,530.9 5,005.6 4,645.1 Initial fees 65.6 54.5 59.2 Revenues from franchised restaurants $ 15,436.5 $ 14,105.8 $ 13,085.4 |
Future Gross Minimum Rent Payments | Future gross minimum rent payments due to the Company under existing conventional franchise arrangements are: In millions Owned sites Leased sites Total 2024 $ 1,511.7 $ 1,468.6 $ 2,980.3 2025 1,470.4 1,407.6 2,878.0 2026 1,417.3 1,350.5 2,767.8 2027 1,370.9 1,294.1 2,665.0 2028 1,312.3 1,223.5 2,535.8 Thereafter 9,108.3 8,227.2 17,335.5 Total minimum payments $ 16,190.9 $ 14,971.5 $ 31,162.4 |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Detail of Rent Expense | The following table provides detail of rent expense: In millions 2023 2022 2021 Restaurants $ 1,491.0 $ 1,416.4 $ 1,486.3 Other 51.3 59.7 74.0 Total rent expense $ 1,542.3 $ 1,476.1 $ 1,560.3 |
Schedule of Maturites of Operating Lease Liabilities | As of December 31, 2023, maturities of lease liabilities for the Company's lease portfolio were as follows: In millions Operating Finance Total* 2024 $ 1,126.3 $ 78.0 $ 1,204.3 2025 1,093.7 79.3 1,173.0 2026 1,046.2 80.0 1,126.2 2027 1,018.1 80.6 1,098.7 2028 981.1 81.2 1,062.3 Thereafter 12,132.2 2,083.1 14,215.3 Total lease payments $ 17,397.6 $ 2,482.2 $ 19,879.8 Less: imputed interest 5,227.3 906.7 6,134.0 Present value of lease liability $ 12,170.3 $ 1,575.5 $ 13,745.8 * Total lease payments include option periods that are reasonably certain of being exercised. |
Other Operating (Income) Expe_2
Other Operating (Income) Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Operating (Income) Expense by Component | In millions 2023 2022 2021 Gains on sales of restaurant businesses $ (103.2) $ (59.8) $ (96.6) Equity in earnings of unconsolidated affiliates (153.4) (113.2) (176.7) Asset dispositions and other (income) expense, net (6.8) 136.8 75.4 Impairment and other charges (gains), net 362.3 1,009.8 (285.4) Total $ 98.9 $ 973.6 $ (483.3) |
Restructuring and Related Act_2
Restructuring and Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the balance of accrued expenses related to this strategic initiative (in millions): Employee Termination Benefits Costs to Terminate Contracts Other Related Costs Total 2023 Beginning Balance $ — $ — $ — $ — Restructuring Costs Incurred 110.3 26.9 43.3 180.5 Cash Payments (1.5) (1.4) (0.3) (3.2) Other Non-Cash Items — — (14.1) (14.1) Accrued Balance at March 31, 2023 $ 108.8 $ 25.5 $ 28.9 $ 163.2 Restructuring Costs Incurred (8.8) 5.6 21.9 18.7 Cash Payments (27.7) (11.7) (46.8) (86.2) Other Non-Cash Items — — (2.5) (2.5) Accrued Balance at June 30, 2023 $ 72.3 $ 19.4 $ 1.5 $ 93.2 Restructuring Costs Incurred (0.9) — 21.4 20.5 Cash Payments (13.0) (7.4) (15.3) (35.7) Other Non-Cash Items (2.5) — 0.1 (2.4) Accrued Balance at September 30, 2023 $ 55.9 $ 12.0 $ 7.7 $ 75.6 Restructuring Costs Incurred (5.0) — 35.0 30.0 Cash Payments (9.6) (0.8) (36.2) (46.6) Other Non-Cash Items — — 0.5 0.5 Accrued Balance at December 31, 2023 $ 41.3 $ 11.2 $ 7.0 $ 59.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income before Provision for Income Taxes, Classified by Source of Income | Income before provision for income taxes, classified by source of income, was as follows: In millions 2023 2022 2021 U.S. $ 3,665.0 $ 1,845.6 $ 2,413.9 Outside the U.S. 6,857.2 5,979.8 6,714.0 Income before provision for income taxes * $ 10,522.2 $ 7,825.4 $ 9,127.9 *Income before provision for income taxes increased in 2023 primarily due to strong operating performance and prior year net charges detailed in the Net Income and Diluted Earnings Per Share section on page 13 of this Form 10-K. |
Provision for Income Taxes, Classified by Timing and Location of Payment | The provision for income taxes, classified by the timing and location of payment, was as follows: In millions 2023 2022 2021 U.S. federal $ 1,340.0 $ 517.3 $ 887.6 U.S. state 262.7 246.3 228.1 Outside the U.S. 1,137.1 1,230.1 895.3 Current tax provision 2,739.8 1,993.7 2,011.0 U.S. federal (146.0) (80.0) (177.4) U.S. state (29.6) (46.2) (24.1) Outside the U.S. (510.8) (219.5) (226.8) Deferred tax provision (686.4) (345.7) (428.3) Provision for income taxes $ 2,053.4 $ 1,648.0 $ 1,582.7 |
Net Deferred Tax Liabilities | Net deferred tax (assets) liabilities consisted of: In millions December 31, 2023 2022 Lease right-of-use asset $ 3,322.5 $ 3,045.0 Property and equipment 1,668.5 1,706.3 Intangible assets 264.0 296.7 Other 284.8 595.4 Total deferred tax liabilities 5,539.8 5,643.4 Lease liability (3,384.0) (3,099.9) Intangible assets (3,018.2) (2,658.9) Property and equipment (641.8) (676.3) Deferred foreign tax credits (81.6) (74.5) Employee benefit plans (191.6) (180.6) Deferred revenue (166.9) (165.8) Operating loss carryforwards (266.5) (76.6) Other (281.0) (267.4) Total deferred tax assets before valuation allowance (8,031.6) (7,200.0) Valuation allowance 1,149.8 1,077.1 Net deferred tax (assets) liabilities $ (1,342.0) $ (479.5) Balance sheet presentation: Deferred income taxes $ 1,680.9 $ 1,997.5 Other assets-miscellaneous (3,022.9) (2,477.0) Net deferred tax (assets) liabilities $ (1,342.0) $ (479.5) |
Statutory U.S. Federal Income Tax Rate Reconciliation to Effective Income Tax Rates | The statutory U.S. federal income tax rate reconciles to the effective income tax rates as follows: 2023 2022 2021 Statutory U.S. federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of related federal income tax benefit 1.8 2.0 1.8 Foreign income taxed at different rates 1.9 1.1 0.9 Tax impact of intercompany transactions (0.7) 0.2 0.1 Global intangible low-tax income ("GILTI") 0.5 0.4 0.3 Foreign-derived intangible income ("FDII") (2.7) (4.2) (2.6) U.S./Foreign tax law changes — — (3.9) Nonoperating expense related to France audit settlement — 1.4 — Other, net (2.3) (0.8) (0.3) Effective income tax rates 19.5 % 21.1 % 17.3 % |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: In millions 2023 2022 Balance at January 1 $ 647.0 $ 1,504.9 Decreases for positions taken in prior years (82.1) (579.4) Increases for positions taken in prior years 27.5 49.8 Increases for positions related to the current year 40.5 100.3 Settlements with taxing authorities (45.2) (428.1) Lapsing of statutes of limitations — (0.5) Balance at December 31 (1) $ 587.7 $ 647.0 (1) |
Debt Financing (Tables)
Debt Financing (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Debt Obligations | The following table summarizes the Company’s debt obligations (interest rates and debt amounts reflected in the table include the effects of interest rate swaps used to hedge debt). Interest rates (1) December 31 Amounts outstanding In millions of U.S. Dollars Maturity dates 2023 2022 2023 2022 Fixed 4.2 % 4.0 % $ 23,382.6 $ 22,382.0 Floating 6.9 6.6 1,097.5 750.0 Total U.S. Dollar 2024-2053 24,480.1 23,132.0 Fixed 2.4 1.6 10,780.6 8,704.1 Floating 6.6 5.1 331.2 321.2 Total Euro 2024-2035 11,111.8 9,025.3 Fixed 3.4 3.4 748.8 748.7 Floating 5.5 4.3 204.4 204.4 Total Australian Dollar 2024-2029 953.2 953.1 Total British Pounds Sterling - Fixed 2032-2054 4.1 4.1 1,585.1 1,504.1 Total Canadian Dollar - Fixed 2025 3.1 3.1 754.9 737.3 Total Japanese Yen - Fixed 2030 2.9 2.9 88.6 95.3 Fixed 0.2 0.2 475.4 432.6 Floating 4.9 5.2 118.0 262.7 Total other currencies (2) 2024 593.4 695.3 Debt obligations before fair value adjustments and deferred debt costs (3) 39,567.1 36,142.4 Fair value adjustments (4) (61.8) (91.5) Deferred debt costs (160.0) (147.4) Total debt obligations $ 39,345.3 $ 35,903.5 (1) Weighted-average effective rate, computed on a semi-annual basis. (2) Consists of Swiss Francs and Korean Won. (3) Aggregate maturities for 2023 debt balances, before fair value adjustments and deferred debt costs, are as follows (in millions): 2024–$2,192.4; 2025–$3,092.7; 2026–$2,436.3; 2027–$3,113.0; 2028–$4,293.4; Thereafter-$24,439.3. These amounts include a reclassification of short-term obligations totaling $1.1 billion to long-term obligations as they are supported by a long-term line of credit agreement expiring in June 2028. (4) The carrying value of underlying items in fair value hedges, in this case debt obligations, are adjusted for fair value changes to the extent they are attributable to the risk designated as being hedged. The related hedging instruments are also recorded at fair value on the Consolidated Balance Sheet. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation Expense and Effect on Diluted Earnings Per Common Share | Share-based compensation expense and the effect on diluted earnings per common share were as follows: In millions, except per share data 2023 2022 2021 Share-based compensation expense $ 175.2 $ 166.7 $ 139.2 After tax $ 155.4 $ 145.9 $ 120.4 Earnings per common share-diluted $ 0.21 $ 0.20 $ 0.16 |
Weighted Average Assumptions | Weighted-average assumptions 2023 2022 2021 Expected dividend yield 2.3 % 2.2 % 2.4 % Expected stock price volatility 21.6 % 21.3 % 21.8 % Risk-free interest rate 3.9 % 1.9 % 0.7 % Expected life of options (in years) 5.8 5.7 5.7 Fair value per option granted $ 54.35 $ 42.12 $ 30.91 |
Summary of Status and Changes of Stock Option Grants | A summary of the status of the Company’s stock option grants as of December 31, 2023, 2022 and 2021, and changes during the years then ended, is presented in the following table: 2023 2022 2021 Options Shares in Weighted- Weighted- Aggregate Shares in Weighted- Shares in Weighted- Outstanding at beginning of year 11.4 $ 172.27 12.0 $ 156.13 13.4 $ 139.44 Granted 1.2 266.70 1.6 252.97 2.1 215.73 Exercised (2.0) 133.76 (1.9) 128.08 (2.4) 115.29 Forfeited/expired (0.1) 244.95 (0.3) 225.93 (1.1) 160.50 Outstanding at end of year 10.5 $ 189.78 5.5 $ 1,116.1 11.4 $ 172.27 12.0 $ 156.13 Exercisable at end of year 7.2 $ 165.22 4.4 $ 951.7 7.7 7.8 |
Summary of RSU Activity | A summary of the Company’s RSU activity during the years ended December 31, 2023, 2022 and 2021 is presented in the following table: 2023 2022 2021 RSUs Shares in Weighted- Shares in Weighted- Shares in Weighted- Nonvested at beginning of year 1.2 $ 222.32 1.3 $ 197.10 1.3 $ 176.81 Granted 0.5 255.14 0.5 242.82 0.6 206.92 Vested (0.4) 210.03 (0.4) 173.31 (0.4) 153.55 Forfeited (0.1) 244.58 (0.2) 205.61 (0.2) 168.38 Nonvested at end of year 1.2 $ 238.21 1.2 $ 222.32 1.3 $ 197.10 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Restaurant Information by Ownership Type (Detail) | Dec. 31, 2023 Restaurant | Dec. 31, 2022 Restaurant | Dec. 31, 2021 Restaurant |
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 41,822 | 40,275 | 40,031 |
Franchised restaurants: | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 39,680 | 38,169 | 37,295 |
Company-operated restaurants: | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 2,142 | 2,106 | 2,736 |
Conventional franchised | Franchised restaurants: | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 21,818 | 21,720 | 21,607 |
Developmental licensed | Franchised restaurants: | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 8,684 | 8,229 | 7,913 |
Affiliated | Franchised restaurants: | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 9,178 | 8,220 | 7,775 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Revenue Recognition (Details) | Dec. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation satisfaction period | 20 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Property and Equipment Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 12 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Capitalized Software (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Capitalized software less accumulated amortization | $ 836,000,000 | $ 864,300,000 | $ 795,000,000 |
Write-offs of impaired software | $ 71,700,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Long-Lived Assets Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Impairment of long-lived assets to be disposed of, period | 12 months |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Goodwill Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Period of goodwill written off related to sale of restaurant after acquisition | 24 months | |
Goodwill accumulated impairment losses | $ 14.5 | $ 14.5 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies Activity in Goodwill by Segment (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2022 | $ 2,900.4 |
Net restaurant purchases (sales) | 107.4 |
Currency translation | 32.6 |
Balance at December 31, 2023 | 3,040.4 |
U.S. | |
Goodwill [Roll Forward] | |
Balance at December 31, 2022 | 1,815.2 |
Net restaurant purchases (sales) | 17.7 |
Currency translation | 0 |
Balance at December 31, 2023 | 1,832.9 |
International Operated Markets | |
Goodwill [Roll Forward] | |
Balance at December 31, 2022 | 1,085.2 |
Net restaurant purchases (sales) | 89.7 |
Currency translation | 32.6 |
Balance at December 31, 2023 | 1,207.5 |
International Developmental Licensed Markets & Corporate | |
Goodwill [Roll Forward] | |
Balance at December 31, 2022 | 0 |
Net restaurant purchases (sales) | 0 |
Currency translation | 0 |
Balance at December 31, 2023 | $ 0 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Company Operated Restaurant Advertising Expense | $ 347.2 | $ 334.5 | $ 377.6 |
Other Marketing Related Expenses | $ 41.7 | $ 63.8 | $ 82.9 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets | $ 209,300,000 | $ 282,500,000 |
Derivative liabilities | (118,200,000) | (141,700,000) |
Investments | 191,500,000 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets | 188,600,000 | |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets | 188,600,000 | 200,500,000 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets | 20,700,000 | 82,000,000 |
Derivative liabilities | $ (118,200,000) | $ (141,700,000) |
Summary of Significant Accou_13
Summary of Significant Accounting Policies Fair Value Measurements Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Debt obligations, fair value | $ 38,400 | |
Debt obligations, carrying amount | $ 39,345.3 | $ 35,903.5 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies Fair Values of Derivative Instruments Included on Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $ 209.3 | $ 282.5 |
Liability Derivatives Fair Value | (118.2) | (141.7) |
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | 5.6 | |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 15.2 | 82 |
Liability Derivatives Fair Value | (113.4) | (140.1) |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 194.1 | 200.5 |
Liability Derivatives Fair Value | (4.8) | (1.6) |
Royalty Arrangement | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | $ 1,900 | |
Period covered by hedge | 18 months | |
Foreign currency | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $ 8.5 | 53.3 |
Foreign currency | Prepaid expenses and other current assets | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 5.5 | 0 |
Foreign currency | Accrued payroll and other liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | (37.3) | (17.9) |
Foreign currency | Accrued payroll and other liabilities | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | (4.8) | (1.6) |
Foreign currency | Miscellaneous other assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 2.4 | 28.7 |
Foreign currency | Other long- term liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | (14.3) | (30.7) |
Interest rate | Prepaid expenses and other current assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 4.3 | 0 |
Interest rate | Accrued payroll and other liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | (3.6) | 0 |
Interest rate | Miscellaneous other assets | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 0 | 0 |
Interest rate | Other long- term liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | (58.2) | (91.5) |
Equity | Prepaid expenses and other current assets | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 0 | 200.5 |
Equity | Accrued payroll and other liabilities | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | ||
Equity | Miscellaneous other assets | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $ 0 | |
Fair Value Hedging | Interest Rate Risk [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | 61.8 | |
Gain (Loss) Recognized in Income on Derivative | 29.7 | |
Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Notional Amount | 1,000 | |
Intercompany Debt [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount of Nonderivative Instruments | 555 | |
Debt [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount of Nonderivative Instruments | $ 14,400 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 31.1 | |
Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in AOCI | (25.1) | 206.4 |
Gain (loss) reclassified into income from AOCI | 21.1 | 134.9 |
Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in AOCI | (395.1) | 890.8 |
Gain (loss) reclassified into income from AOCI | ||
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 25.8 | 11.2 |
Interest rate | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in AOCI | 14.6 | 83.9 |
Gain (loss) reclassified into income from AOCI | 0.9 | (2.9) |
Total Other Currencies | Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in AOCI | (435.2) | 902.8 |
Gain (loss) reclassified into income from AOCI | ||
Foreign currency | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 4.3 | 9.3 |
Foreign currency | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in AOCI | (39.7) | 122.5 |
Gain (loss) reclassified into income from AOCI | 20.2 | 137.8 |
Foreign currency derivatives | Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in AOCI | 40.1 | (12) |
Cross Currency Interest Rate Contract [Member] | Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 25.8 | 11.2 |
Equity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 26.8 | $ (9.3) |
Summary of Significant Accou_16
Summary of Significant Accounting Policies Per Common Share Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 4.4 | 4.8 | 5.5 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2 | 1.5 | 2.2 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies Cash and Equivalents (Details) $ in Billions | Dec. 31, 2023 USD ($) |
Accounting Policies [Abstract] | |
Certificates of Deposit, at Carrying Value | $ 4 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalent | $ 4.6 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 39,477.8 | $ 37,403 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 19,943.9 | $ 19,416.3 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Percentage of segment franchised | 95% | |
International Operated Markets | ||
Segment Reporting Information [Line Items] | ||
Percentage of segment franchised | 89% | |
International Developmental Licensed Markets & Corporate | ||
Segment Reporting Information [Line Items] | ||
Percentage of segment franchised | 98% |
Segment and Geographic Inform_4
Segment and Geographic Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Entity Wide Revenue Major Customer [Line Items] | |||
Total revenues | $ 25,493.7 | $ 23,182.6 | $ 23,222.9 |
Total operating income | 11,646.7 | 9,371 | 10,356 |
Total Other Assets | 9,738.4 | 8,672.1 | |
Total assets | 56,146.8 | 50,435.6 | 53,854.3 |
Total capital expenditures | 2,357.4 | 1,899.2 | 2,040 |
Depreciation and amortization | 1,978.2 | 1,870.6 | 1,868.1 |
U.S. | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Total revenues | 10,568.4 | 9,588.4 | 8,865 |
Total operating income | 5,694.4 | 5,136.4 | 4,754.7 |
Total assets | 22,477 | 21,793 | 21,280.3 |
Total capital expenditures | 962.5 | 860 | 940.7 |
Depreciation and amortization | 968.9 | 912.4 | 840.7 |
International Operated Markets | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Total revenues | 12,382 | 11,297 | 12,219.8 |
Total operating income | 5,831.5 | 3,926 | 5,130.6 |
Total assets | 23,946.9 | 21,979.3 | 24,186.1 |
Total capital expenditures | 1,340.5 | 1,015.2 | 1,050.6 |
Depreciation and amortization | 679.5 | 640.6 | 726.4 |
International Developmental Licensed Markets & Corporate | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Total revenues | 2,543.3 | 2,297.2 | 2,138.1 |
Total operating income | 120.8 | 308.6 | 470.7 |
Total assets | 9,722.9 | 6,663.3 | 8,387.9 |
Total capital expenditures | 54.4 | 24 | 48.7 |
Depreciation and amortization | $ 329.8 | $ 317.6 | $ 301 |
Net Property and Equipment (Det
Net Property and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 7,081.3 | $ 6,686.3 |
Buildings and improvements on owned land | 20,059.3 | 18,934.2 |
Buildings and improvements on leased land | 13,322.3 | 12,492 |
Equipment, signs and seating | 2,692.7 | 2,498.6 |
Other | 414.4 | 426.5 |
Property and equipment, at cost | 43,570 | 41,037.6 |
Accumulated depreciation and amortization | (18,662.4) | (17,264) |
Net property and equipment | $ 24,907.6 | $ 23,773.6 |
Property and Equipment Property
Property and Equipment Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense for property and equipment | $ 1,501.5 | $ 1,454 | $ 1,530.7 |
Franchise Arrangements - Additi
Franchise Arrangements - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Franchise arrangement term | 20 years | |
Franchise arrangement renewal term | 20 years | |
Net property and equipment | $ 24,907.6 | $ 23,773.6 |
Land | 7,081.3 | 6,686.3 |
Accumulated depreciation and amortization of property and equipment | 18,662.4 | $ 17,264 |
Franchise Arrangements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net property and equipment | 20,100 | |
Land | 6,200 | |
Accumulated depreciation and amortization of property and equipment | $ 14,500 |
Revenues from Franchised Restau
Revenues from Franchised Restaurants (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessor Disclosure [Abstract] | |||
Rents | $ 9,840 | $ 9,045.7 | $ 8,381.1 |
Royalties | 5,530.9 | 5,005.6 | 4,645.1 |
Initial Fees | 65.6 | 54.5 | 59.2 |
Revenues from franchised restaurants | $ 15,436.5 | $ 14,105.8 | $ 13,085.4 |
Future Gross Minimum Rent Payme
Future Gross Minimum Rent Payments (Detail) $ in Millions | Dec. 31, 2023 USD ($) |
Leases Disclosure [Line Items] | |
2024 | $ 2,980.3 |
2025 | 2,878 |
2026 | 2,767.8 |
2027 | 2,665 |
2028 | 2,535.8 |
Thereafter | 17,335.5 |
Total minimum payments | 31,162.4 |
Owned sites | |
Leases Disclosure [Line Items] | |
2024 | 1,511.7 |
2025 | 1,470.4 |
2026 | 1,417.3 |
2027 | 1,370.9 |
2028 | 1,312.3 |
Thereafter | 9,108.3 |
Total minimum payments | 16,190.9 |
Leased sites | |
Leases Disclosure [Line Items] | |
2024 | 1,468.6 |
2025 | 1,407.6 |
2026 | 1,350.5 |
2027 | 1,294.1 |
2028 | 1,223.5 |
Thereafter | 8,227.2 |
Total minimum payments | $ 14,971.5 |
Detail of Rent Expense (Detail)
Detail of Rent Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases Disclosure [Line Items] | |||
Restaurants | $ 1,491 | $ 1,416.4 | $ 1,486.3 |
Other | 51.3 | 59.7 | 74 |
Rent Expense | $ 1,542.3 | $ 1,476.1 | $ 1,560.3 |
Leasing Arrangements Maturities
Leasing Arrangements Maturities of Operating Lease Liabilities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 1,126.3 |
2025 | 1,093.7 |
2026 | 1,046.2 |
2027 | 1,018.1 |
2028 | 981.1 |
Thereafter | 12,132.2 |
Total lease payments | 17,397.6 |
Less: imputed interest | (5,227.3) |
Finance Lease, Liability | 1,575.5 |
Present value of lease liability | 12,170.3 |
Finance Lease, Liability, to be Paid, Year One | 78 |
Finance Lease, Liability, to be Paid, Year Two | 79.3 |
Finance Lease, Liability, to be Paid, Year Three | 80 |
Finance Lease, Liability, to be Paid, Year Four | 80.6 |
Finance Lease, Liability, to be Paid, Year Five | 81.2 |
Finance Lease, Liability, to be Paid, after Year Five | 2,083.1 |
Finance Lease, Liability, to be Paid | 2,482.2 |
Finance Lease, Liability, Undiscounted Excess Amount | $ 906.7 |
Leasing Arrangements - Addition
Leasing Arrangements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Leased Assets [Line Items] | |||
Lease term | 20 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4% | 3.60% | |
Finance Lease Liabilities, Repayment of Principal, Percent | 3% | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 1,000 | ||
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 300 | ||
Payments Of Lease Liabilities | 1,500 | $ 1,500 | $ 1,500 |
Increase (Decrease) in Operating Lease Liability | 950 | ||
Company-operated restaurants: | |||
Operating Leased Assets [Line Items] | |||
Percent rents in excess of minimum rents | 56.1 | 39.6 | 69.2 |
Franchised restaurants: | |||
Operating Leased Assets [Line Items] | |||
Percent rents in excess of minimum rents | $ 261.4 | $ 209 | $ 160 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Escalation timing | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Escalation timing | 5 years |
Leasing Arrangements (Details)
Leasing Arrangements (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases Disclosure [Line Items] | ||
Operating Lease, Weighted Average Remaining Lease Term | 17 years | 18 years |
Finance Lease, Weighted Average Remaining Lease Term | 28 years | 29 years |
Operating Lease, Weighted Average Discount Rate, Percent | 4% | 3.60% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.60% | 3% |
Present value of lease liability | $ 12,170.3 | |
Finance Lease, Liability | 1,575.5 | |
Contractual Obligation, to be Paid, Year One | 1,204.3 | |
Contractual Obligation, to be Paid, Year Two | 1,173 | |
Contractual Obligation, to be Paid, Year Three | 1,126.2 | |
Contractual Obligation, to be Paid, Year Four | 1,098.7 | |
Contractual Obligation, to be Paid, Year Five | 1,062.3 | |
Contractual Obligation, to be Paid, after Year Five | 14,215.3 | |
Contractual Obligation | 19,879.8 | |
Leesse, Lease, Liability, Undiscounted Excess Amount | 6,134 | |
Lease Liability | $ 13,745.8 | |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-term lease liability | |
Revision of Prior Period, Adjustment [Member] | ||
Leases Disclosure [Line Items] | ||
Lease right-of-use asset, net | $ 13,514.4 | $ 12,565.7 |
Lease liability | 688.1 | 661.1 |
Long-term lease liability | 13,057.7 | 12,134.4 |
Previously Reported [Member] | ||
Leases Disclosure [Line Items] | ||
Lease right-of-use asset, net | 11,724.2 | 11,052.1 |
Lease liability | 642.6 | 639.6 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 1,790.2 | 1,513.6 |
Finance Lease, Liability, Current | 45.5 | 21.5 |
Long-term lease liability | 11,527.7 | 10,834.1 |
Finance Lease, Liability | $ 1,530 | $ 1,300.2 |
Other Operating (Income) Expe_3
Other Operating (Income) Expenses by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Gains on sales of restaurant businesses | $ (103.2) | $ (59.8) | $ (96.6) |
Equity in earnings of unconsolidated affiliates | (153.4) | (113.2) | (176.7) |
Asset dispositions and other (income) expense, net | (6.8) | 136.8 | 75.4 |
Impairment and other charges (gains), net | 362.3 | 1,009.8 | (285.4) |
Total | $ 98.9 | $ 973.6 | $ (483.3) |
Other Operating (Income) Expe_4
Other Operating (Income) Expense, Net Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Restructuring Charges | $ 290,000,000 | ||
Write-offs of impaired software | 71,700,000 | ||
Gains on sales of restaurant businesses | $ (103,200,000) | $ (59,800,000) | $ (96,600,000) |
Russia Market | |||
Schedule of Equity Method Investments [Line Items] | |||
Gains on sales of restaurant businesses | (1,300,000,000) | ||
Dynamic Yield | |||
Schedule of Equity Method Investments [Line Items] | |||
Gains on sales of restaurant businesses | $ (271,000,000) | ||
McDonald's Japan | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage in McDonald's Japan | 35% |
Restructuring and Related Act_3
Restructuring and Related Activities (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2023 | Jan. 01, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | $ 59,500,000 | $ 75,600,000 | $ 93,200,000 | $ 163,200,000 | $ 59,500,000 | $ 0 |
Restructuring and Related Cost, Incurred Cost | 30,000,000 | 20,500,000 | 18,700,000 | 180,500,000 | $ 249,700,000 | |
Payments for Restructuring | (46,600,000) | (35,700,000) | (86,200,000) | (3,200,000) | ||
Restructuring Reserve, Accrual Adjustment | 500,000 | (2,400,000) | (2,500,000) | (14,100,000) | ||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Operating Income (Expense), Net | |||||
International Developmental Licensed Markets & Corporate | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Incurred Cost | $ 121,700,000 | |||||
U.S. | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Incurred Cost | 62,400,000 | |||||
International Operated Markets | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and Related Cost, Incurred Cost | 65,600,000 | |||||
Special Termination Benefits | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 41,300,000 | 55,900,000 | 72,300,000 | 108,800,000 | 41,300,000 | 0 |
Restructuring and Related Cost, Incurred Cost | (5,000,000) | (900,000) | (8,800,000) | 110,300,000 | ||
Payments for Restructuring | (9,600,000) | (13,000,000) | (27,700,000) | (1,500,000) | ||
Restructuring Reserve, Accrual Adjustment | 0 | (2,500,000) | 0 | 0 | ||
Contract Termination | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 11,200,000 | 12,000,000 | 19,400,000 | 25,500,000 | 11,200,000 | 0 |
Restructuring and Related Cost, Incurred Cost | 0 | 0 | 5,600,000 | 26,900,000 | ||
Payments for Restructuring | (800,000) | (7,400,000) | (11,700,000) | (1,400,000) | ||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | 0 | 0 | ||
Other Restructuring | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve | 7,000,000 | 7,700,000 | 1,500,000 | 28,900,000 | $ 7,000,000 | $ 0 |
Restructuring and Related Cost, Incurred Cost | 35,000,000 | 21,400,000 | 21,900,000 | 43,300,000 | ||
Payments for Restructuring | (36,200,000) | (15,300,000) | (46,800,000) | (300,000) | ||
Restructuring Reserve, Accrual Adjustment | $ 500,000 | $ 100,000 | $ (2,500,000) | $ (14,100,000) |
Income before Provision for Inc
Income before Provision for Income Taxes, Classified by Source of Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Document Fiscal Year Focus | 2023 | ||
U.S. | $ 3,665 | $ 1,845.6 | $ 2,413.9 |
Outside the U.S. | 6,857.2 | 5,979.8 | 6,714 |
Income before provision for income taxes | $ 10,522.2 | $ 7,825.4 | $ 9,127.9 |
Provision for Income Taxes, Cla
Provision for Income Taxes, Classified by Timing and Location of Payment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Document Fiscal Year Focus | 2023 | ||
U.S. federal | $ 1,340 | $ 517.3 | $ 887.6 |
U.S. state | 262.7 | 246.3 | 228.1 |
Outside the U.S. | 1,137.1 | 1,230.1 | 895.3 |
Current tax provision | 2,739.8 | 1,993.7 | 2,011 |
U.S. federal | (146) | (80) | (177.4) |
U.S. state | (29.6) | (46.2) | (24.1) |
Outside the U.S. | (510.8) | (219.5) | (226.8) |
Deferred tax provision | (686.4) | (345.7) | (428.3) |
Provision for income taxes | $ 2,053.4 | $ 1,648 | $ 1,582.7 |
Net Deferred Tax Liabilities (D
Net Deferred Tax Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Lease right-of-use asset | $ 3,322.5 | $ 3,045 |
Property and equipment | 1,668.5 | 1,706.3 |
Intangible assets | 264 | 296.7 |
Other | 284.8 | 595.4 |
Total deferred tax liabilities | 5,539.8 | 5,643.4 |
Lease liability | (3,384) | (3,099.9) |
Intangible assets | (3,018.2) | (2,658.9) |
Property and equipment | (641.8) | (676.3) |
Deferred foreign tax credits | (81.6) | (74.5) |
Employee benefit plans | (191.6) | (180.6) |
Deferred revenue | (166.9) | (165.8) |
Operating loss carryforwards | (266.5) | (76.6) |
Other | (281) | (267.4) |
Total deferred tax assets before valuation allowance | (8,031.6) | (7,200) |
Valuation allowance | 1,149.8 | 1,077.1 |
Net deferred tax (assets) liabilities | (1,342) | (479.5) |
Balance sheet presentation: | ||
Deferred income taxes | 1,680.9 | 1,997.5 |
Other assets-miscellaneous | (3,022.9) | (2,477) |
Net deferred tax (assets) liabilities | $ (1,342) | $ (479.5) |
Statutory U.S. Federal Income T
Statutory U.S. Federal Income Tax Rate Reconcilation to Effective Income Tax Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21% | 21% | 21% |
State income taxes, net of related federal income tax benefit | 1.80% | 2% | 1.80% |
Foreign income taxed at different rates | 1.90% | 1.10% | 0.90% |
Tax Impact of Intercompany Transactions | (0.70%) | 0.20% | 0.10% |
Effective Income Tax Rate Reconciliation, Global Intangible Low-Taxed Income, Percent | 0.50% | 0.40% | 0.30% |
Effective Income Tax Rate Reconciliation Foreign Derived Intangible Income | (2.70%) | (4.20%) | (2.60%) |
Tax law changes | 0% | 0% | (3.90%) |
Foreign tax credit redetermination regulations | 0% | 1.40% | 0% |
Other, net | (2.30%) | (0.80%) | (0.30%) |
Effective income tax rates | 19.50% | 21.10% | 17.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Income Tax Disclosure [Abstract] | |||||
Operating loss carryforwards | $ 1,112.8 | ||||
Indefinite operating loss carryforwards | 924.8 | ||||
Gain (loss) on sale of stock in subsidiary or equity method investee | 537 | ||||
Income tax benefit, deferred taxes | $ 364 | ||||
Unrecognized tax benefits | 587.7 | [1] | $ 647 | [1] | 1,504.9 |
Effective tax rate adjustment | 588 | ||||
Reasonably possible decrease in unrecognized tax benefit within the next 12 months | 262 | ||||
Accrued interest and penalties related to income tax matters | $ 24.9 | 24.7 | |||
Provision for income taxes, interest and penalties expense related to tax matters | 90.5 | $ 24.4 | |||
Other Tax Expense (Benefit) | $ 239 | ||||
[1] Of this amount, $318.5 million and $619.6 million are included in Long-term income taxes for 2023 and 2022, respectively, and $269.2 million and $27.3 million are included in Income taxes for 2023 and 2022, respectively, on the Consolidated Balance Sheet. |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at January 1 | $ 647 | [1] | $ 1,504.9 | |
Decreases for positions taken in prior years | (82.1) | (579.4) | ||
Increases for positions taken in prior years | 27.5 | 49.8 | ||
Increases for positions related to the current year | 40.5 | 100.3 | ||
Settlements with taxing authorities | (45.2) | (428.1) | ||
Lapsing of statutes of limitations | 0 | (0.5) | ||
Balance at December 31 | [1] | 587.7 | 647 | |
Long-term income taxes | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at January 1 | 619.6 | |||
Balance at December 31 | 318.5 | 619.6 | ||
Prepaid expenses and other current assets | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at January 1 | 27.3 | |||
Balance at December 31 | $ 269.2 | $ 27.3 | ||
[1] Of this amount, $318.5 million and $619.6 million are included in Long-term income taxes for 2023 and 2022, respectively, and $269.2 million and $27.3 million are included in Income taxes for 2023 and 2022, respectively, on the Consolidated Balance Sheet. |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule Of Employee Benefit Plans [Line Items] | ||
Supplemental benefit plan liabilities | $ 402,700,000 | $ 380,000,000 |
Investment, indexed to Market Indices Fair Value | 191,500,000 | |
Level 1 | ||
Schedule Of Employee Benefit Plans [Line Items] | ||
Derivative assets | $ 188,600,000 | |
Maximum | ||
Schedule Of Employee Benefit Plans [Line Items] | ||
Future participant contributions percentage | 20% |
Debt Financing - Additional Inf
Debt Financing - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Line of Credit Facility [Line Items] | ||
Weighted-average interst rate on short-term borrowings | 5.40% | 5.20% |
Commercial Paper | $ 347.6 | |
Thereafter | 4,293.4 | |
Other Long-Term Debt | 24,439.3 | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Unused Line of credit | $ 4,000 | |
Revolving Credit Facility | Unused lines of Credit | ||
Line of Credit Facility [Line Items] | ||
Unused Line of credit agreement, fees | 0.08% | |
Outside the U.S. | ||
Line of Credit Facility [Line Items] | ||
Foreign currency bank line borrowings | $ 119.9 | $ 264.5 |
Summary of Debt Obligations (De
Summary of Debt Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | ||
Debt Disclosure [Line Items] | ||||
Amounts outstanding | $ 39,567,100 | [1] | $ 36,142,400 | |
Fair value adjustments | [2] | (61,800) | (91,500) | |
Deferred debt costs | (160,000) | (147,400) | ||
Total debt obligations | 39,345,300 | 35,903,500 | ||
Total U.S. Dollar | ||||
Debt Disclosure [Line Items] | ||||
Amounts outstanding | $ 24,480,100 | $ 23,132,000 | ||
Total U.S. Dollar | Fixed | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 4.20% | 4% | |
Amounts outstanding | $ 23,382,600 | $ 22,382,000 | ||
Total U.S. Dollar | Floating | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 6.90% | 6.60% | |
Amounts outstanding | $ 1,097,500 | $ 750,000 | ||
Total Euro | ||||
Debt Disclosure [Line Items] | ||||
Amounts outstanding | $ 11,111,800 | $ 9,025,300 | ||
Total Euro | Fixed | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 2.40% | 1.60% | |
Amounts outstanding | $ 10,780,600 | $ 8,704,100 | ||
Total Euro | Floating | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 6.60% | 5.10% | |
Amounts outstanding | $ 331,200 | $ 321,200 | ||
Total Australian Dollar | ||||
Debt Disclosure [Line Items] | ||||
Amounts outstanding | $ 953,200 | $ 953,100 | ||
Total Australian Dollar | Fixed | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 3.40% | 3.40% | |
Amounts outstanding | $ 748,800 | $ 748,700 | ||
Total Australian Dollar | Floating | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 5.50% | 4.30% | |
Amounts outstanding | $ 204,400 | $ 204,400 | ||
Total British Pounds Sterling | Fixed | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 4.10% | 4.10% | |
Amounts outstanding | $ 1,585,100 | $ 1,504,100 | ||
Total Canadian Dollar | Fixed | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 3.10% | 3.10% | |
Amounts outstanding | $ 754,900 | $ 737,300 | ||
Total Japanese Yen | Fixed | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 2.90% | 2.90% | |
Amounts outstanding | $ 88,600 | $ 95,300 | ||
Total Other Currencies | ||||
Debt Disclosure [Line Items] | ||||
Amounts outstanding | [4] | $ 593,400 | $ 695,300 | |
Total Other Currencies | Fixed | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | 0.20% | 0.20% | ||
Amounts outstanding | $ 475,400 | $ 432,600 | ||
Total Other Currencies | Floating | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | 4.90% | 5.20% | ||
Amounts outstanding | $ 118,000 | $ 262,700 | ||
[1]Aggregate maturities for 2023 debt balances, before fair value adjustments and deferred debt costs, are as follows (in millions): 2024–$2,192.4; 2025–$3,092.7; 2026–$2,436.3; 2027–$3,113.0; 2028–$4,293.4; Thereafter-$24,439.3. These amounts include a reclassification of short-term obligations totaling $1.1 billion to long-term obligations as they are supported by a long-term line of credit agreement expiring in June 2028[2] The carrying value of underlying items in fair value hedges, in this case debt obligations, are adjusted for fair value changes to the extent they are attributable to the risk designated as being hedged. The related hedging instruments are also recorded at fair value on the Consolidated Balance Sheet. Weighted-average effective rate, computed on a semi-annual basis. |
Summary of Debt Obligations (Ta
Summary of Debt Obligations (Table Footnotes) (Detail) $ in Millions | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 2,192.4 |
2025 | 3,092.7 |
2026 | 2,436.3 |
2027 | 3,113 |
Thereafter | 4,293.4 |
Reclassification of short-term obligations to long-term obligations | $ 1,100 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Performance Share Units [Line Items] | |||
Share-based compensation plan, number of shares of common stock reserved for issuance | 32.1 | ||
Unrecognized compensation cost related to nonvested share-based compensation | $ 176.5 | ||
Nonvested share-based compensation, recognition period | 2 years | ||
Stock options, number of years to expire | 10 years | ||
Proceeds from stock option exercises | $ 259.8 | $ 248.2 | $ 285.7 |
RSUs vested, total fair value | $ 127.2 | 110.3 | 80 |
Stock Compensation Plan | |||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Performance Share Units [Line Items] | |||
Outstanding stock options | 20.4 | ||
Stock Option | |||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Performance Share Units [Line Items] | |||
Stock options exercised total intrinsic value | $ 304 | $ 242.2 | $ 302 |
Tax benefit realized from share-based compensation | 69.2 | ||
Restricted Stock Units (RSUs) | |||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Performance Share Units [Line Items] | |||
Tax benefit realized from share-based compensation | $ 25.1 | ||
Vesting percentage | 100% | ||
Vesting period | 3 years |
Share-based Compensation Expens
Share-based Compensation Expense and Effect on Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Share-based compensation expense | $ 175.2 | $ 166.7 | $ 139.2 |
After tax | $ 155.4 | $ 145.9 | $ 120.4 |
Earnings per common share-diluted (in dollars per share) | $ 0.21 | $ 0.20 | $ 0.16 |
Weighted Average Assumptions (D
Weighted Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Expected dividend yield | 2.30% | 2.20% | 2.40% |
Expected stock price volatility | 21.60% | 21.30% | 21.80% |
Risk-free interest rate | 3.90% | 1.90% | 0.70% |
Expected life of options (in years) | 5 years 9 months 18 days | 5 years 8 months 12 days | 5 years 8 months 12 days |
Fair value per option granted | $ 54.35 | $ 42.12 | $ 30.91 |
Summary of Status and Changes o
Summary of Status and Changes of Stock Option Grants (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares in millions | |||
Outstanding at beginning of year (in shares) | 11.4 | 12 | 13.4 |
Granted (in shares) | 1.2 | 1.6 | 2.1 |
Exercised (in shares) | (2) | (1.9) | (2.4) |
Forfeited/expired (in shares) | (0.1) | (0.3) | (1.1) |
Outstanding at end of year (in shares) | 10.5 | 11.4 | 12 |
Exercisable at end of year (in shares) | 7.2 | 7.7 | 7.8 |
Weighted- average exercise price | |||
Outstanding at beginning of year (in dollars per share) | $ 172.27 | $ 156.13 | $ 139.44 |
Granted (in dollars per share) | 266.70 | 252.97 | 215.73 |
Exercised (in dollars per share) | 133.76 | 128.08 | 115.29 |
Forfeited/expired (in dollars per share) | 244.95 | 225.93 | 160.50 |
Outstanding at end of year (in dollars per share) | 189.78 | $ 172.27 | $ 156.13 |
Exercisable at end of year (in dollars per share) | $ 165.22 | ||
Weighted- average remaining contractual life in years | |||
Outstanding at end of year | 5 years 6 months | ||
Exercisable at end of year | 4 years 4 months 24 days | ||
Aggregate intrinsic value in millions | |||
Outstanding at end of year | $ 1,116.1 | ||
Exercisable at end of year | $ 951.7 |
Summary of RSU Activity (Detail
Summary of RSU Activity (Detail) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares in millions | |||
Nonvested at beginning of year (in shares) | 1.2 | 1.3 | 1.3 |
Granted (in shares) | 0.5 | 0.5 | 0.6 |
Vested (in shares) | (0.4) | (0.4) | (0.4) |
Forfeited (in shares) | (0.1) | (0.2) | (0.2) |
Nonvested at end of year (in shares) | 1.2 | 1.2 | 1.3 |
Weighted- average grant date fair value | |||
Nonvested at beginning of year (in dollars per share) | $ 222.32 | $ 197.10 | $ 176.81 |
Granted (in dollars per share) | 255.14 | 242.82 | 206.92 |
Vested (in dollars per share) | 210.03 | 173.31 | 153.55 |
Forfeited (in dollars per share) | 244.58 | 205.61 | 168.38 |
Nonvested at end of year (in dollars per share) | $ 238.21 | $ 222.32 | $ 197.10 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jan. 30, 2024 | Dec. 31, 2023 |
Subsequent Event [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Business Combination, Price of Acquisition, Expected | $ 1,800 | |
Equity Method Investment, Increase (Decrease) In Ownership Percentage | 28% | |
China and Hong Kong [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage in McDonald's Japan | 20% | |
China and Hong Kong [Member] | Subsequent Event [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage in McDonald's Japan | 48% | |
CITIC Consortium | CITIC Consortium | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage in McDonald's Japan | 52% |