McDonald's (MCD) reported a slight decline in net income for 2024, with a 3% decrease to $8.2 billion compared to $8.5 billion in 2023. This decline was primarily driven by higher interest expenses, a higher effective tax rate, and lower non-operating income, despite higher sales-driven franchised margins and a reduction in weighted-average shares outstanding.

Diluted earnings per share (EPS) decreased by 1% to $11.39 in 2024, compared to $11.56 in 2023. The decrease was partly due to foreign currency translation, which negatively impacted EPS by $0.06. On a non-GAAP basis, diluted EPS was $11.72, reflecting a 2% decline from $11.94 in 2023.

Total revenues increased by 2% to $25.9 billion in 2024, up from $25.5 billion in 2023. This growth was driven by positive franchised sales performance in the U.S. and International Operated Markets, as well as the acquisition of McDonald's business in Israel. However, the sale of McDonald's business in South Korea partially offset these gains.

Systemwide sales grew by 1% to $130.7 billion in 2024, with a 2% increase when excluding currency translation. This growth was supported by comparable sales improvements in certain markets and net restaurant unit expansion.

Operating income rose by 1% to $11.7 billion in 2024, compared to $11.6 billion in 2023. However, the operating margin slightly declined from 46% in 2023 to 45% in 2024, reflecting lower sales-driven margins in Company-owned restaurants in the U.S. and restructuring charges.

Comparable sales for McDonald's globally decreased by 0.1% in 2024. In the U.S., comparable sales increased by 0.2%, driven by average check growth but offset by negative guest counts. International Operated Markets saw a 0.2% decline, with mixed results across regions, while International Developmental Licensed Markets experienced a 0.3% decline due to challenges in China and the Middle East.

Franchised revenues increased by 2% to $15.7 billion in 2024, supported by strong performance in the U.S. and International Operated Markets. Franchised restaurant margins also improved, reaching $13.2 billion, up from $13.0 billion in 2023.

Company-owned and operated restaurant sales remained flat at $9.8 billion in 2024, with a slight decline in the U.S. offset by stable performance in International Operated Markets. Margins for these restaurants decreased slightly to $1.4 billion, reflecting higher operating costs.

Cash provided by operations totaled $9.4 billion in 2024, a 2% decrease from 2023. Free cash flow declined by 8% to $6.7 billion, primarily due to higher capital expenditures and investments in McDonald's China and Israel businesses.

Capital expenditures increased to $2.8 billion in 2024, up from $2.4 billion in 2023. These investments were mainly allocated to new restaurant openings and reinvestments in existing locations.

McDonald's returned $7.7 billion to shareholders in 2024 through dividends and share repurchases. The quarterly cash dividend per share was increased by 6% to $1.77, resulting in an annual dividend of $7.08 per share.

The company's liquidity position weakened in 2024, with cash and equivalents declining to $1.1 billion from $4.6 billion in 2023. This was attributed to higher capital expenditures and reduced bond issuances.

McDonald's opened over 2,100 new restaurants globally in 2024, including those in developmental licensee and affiliated markets, reflecting its continued focus on expansion.

The effective income tax rate increased to 20.5% in 2024, up from 19.5% in 2023, contributing to the decline in net income.