MCDONALDS CORPMCD

MCDONALDS CORP Segments Disclosure

10-KFiled Feb 24, 20263 min read
Segment and Geographic Information
The Company operates under the following global organizational structure, which reflects how management reviews and evaluates operating performance:
•U.S. segment - the Company’s largest market. The segment is 95% franchised as of December 31, 2025.
•International Operated Markets segment - comprised of markets, or countries in which the Company owns and 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, 2025.
•International Developmental Licensed Markets & Corporate - comprised primarily of developmental licensee and affiliate markets in the McDonald’s System, including equity method investments in China and Japan, as well as Corporate activities. The International Developmental Licensed Markets are 99% franchised as of December 31, 2025.
The Company's chief operating decision makers ("CODMs") are the President and Chief Executive Officer ("CEO") and the Executive Vice President and Global Chief Financial Officer ("CFO"). Segment performance is evaluated based on one measure of a segment's profit or loss, operating income, which is used to allocate resources in the annual planning process. Throughout the year, the CODMs consider forecast to actual operating income results and variances against plan to evaluate segment performance and priorities related to allocation of capital and resources supporting organizational objectives.
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, deferred tax assets and office facilities.
In millions202520242023
U.S.$10,825 $10,631 $10,568 
International Operated Markets13,633 12,628 12,382 
International Developmental Licensed Markets & Corporate2,427 2,661 2,543 
Total Revenues$26,885 $25,920 $25,494 
U.S.$1,293 $1,294 $1,286 
International Operated Markets1,324 1,231 1,170 
International Developmental Licensed Markets & Corporate1 11 19 
Total Franchised restaurants-occupancy expenses$2,618 $2,536 $2,475 
U.S.$2,755 $2,780 $2,732 
International Operated Markets5,101 4,765 4,707 
International Developmental Licensed Markets & Corporate413 790 785 
Total Company-operated restaurant expenses$8,268 $8,334 $8,224 
U.S.$653 $654 $661 
International Operated Markets705 631 635 
International Developmental Licensed Markets & Corporate1,682 1,573 1,521 
Total Selling, general & administrative expenses$3,039 $2,858 $2,817 
U.S.$316 $170 $195 
International Operated Markets122 55 39 
International Developmental Licensed Markets & Corporate128 254 97 
Total Other segment items*$566 $480 $331 
U.S.$5,808 $5,733 $5,694 
International Operated Markets6,382 5,946 5,831 
International Developmental Licensed Markets & Corporate203 33 121 
Total Operating income$12,393 $11,712 $11,647 
U.S.$23,008 $22,547 $22,477 
International Operated Markets27,487 23,491 23,947 
International Developmental Licensed Markets & Corporate9,020 9,143 9,723 
Total Assets$59,515 $55,182 $56,147 
U.S.$1,277 $1,055 $963 
International Operated Markets2,048 1,661 1,340 
International Developmental Licensed Markets & Corporate40 58 54 
Total Capital expenditures$3,365 $2,775 $2,357 
U.S.$995 $980 $969 
International Operated Markets789 730 679 
International Developmental Licensed Markets & Corporate415 387 330 
Total Depreciation & amortization**$2,199 $2,097 $1,978 
*Other segment items is the difference between revenues less the significant expenses disclosed and operating income. This includes other restaurant expenses and other operating expenses detailed in the Other operating (income) expense, net footnote on page 55 of this Form 10-K.
**Total depreciation & amortization is included within the respective expense lines disclosed above, such as Company-operated restaurant expenses, Franchised restaurants-occupancy expenses, and Selling, general & administrative expenses.
Total long-lived assets, primarily property and equipment and lease right-of-use asset, were (in billions)–Consolidated: 2025–$44.0; 2024–$39.6; U.S. based: 2025–$20.8; 2024–$20.2.
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Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 25, 2025
2022Feb 24, 2023
2021Feb 24, 2022

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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