Last Updated on 11/03/2020 by GS Staff
McDonald’s Revenue Per Day
According to the 2016 McDonald’s Annual Report, the company made a total of $21,077,000,000 in revenues for the fiscal year ended December 31, 2019. If you take this number and divide it by 365 days per year, you will find that Mcdonald’s makes approximately $57,745,205 per day in revenue.
McDonald’s Net Income Per Day
However, revenue is money that comes in from the sales of breakfast, lunch, and dinner items such as Big Macs, Quarter Pounders, Egg McMuffins, or fees earned from the franchises. Revenue does not take into account expenses. To determine how profitable McDonald’s was in 2019, we have to look at their net income (profit) for the year. In simple terms, we can determine net income by taking revenue minus expenses.
McDonald’s had net income of $6,025,400,000 for the year ended December 31, 2019. When we divide this net income by 365 days per year, we find that McDonald’s earned about $16,507,945 per day in net income.
Main Sources of Income
McDonald’s had 38,695 restaurants worldwide at the end of 2019 in 119 countries. The majority of these restaurants were franchised locations (approximately 93%). A large portion of McDonald’s revenue came from fees collected through the franchises.
Generally, the fees paid by the franchised restaurants consist of an initial fee, rent, and royalties that are paid based on a percentage of sales earned at the franchised locations.
McDonald’s corporation relies heavily on the success of the franchises for its continued growth and profitability. According to the 2016 annual report, its long-term goal was to have 95% franchised locations. As previously stated they are at about 93% now.
The company indicates that franchises create more predictable revenue while also lowering costs. A big cost saving is with capital expenditures because the franchise picks up a lot of these costs.
Comparison – McDonald’s vs Wendy’s
Below we have provided a comparison of how much McDonald’s makes in a year and per day in comparison to Wendy’s. You can get an idea of the size of McDonald’s by looking at these figures.
|Restaurant||Revenue (2019)||Revenue Per Day||Net Income (2019)||Net Income Per Day||Number of Restaurants (approximate)|