McDonald's (MCD) 10-Q2 May 222022 Q1 Quarterly reportFinancial data

Company Profile

Cover

Cover	3 Months Ended
Cover	Mar. 31, 2022shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	1-5231
Entity Registrant Name	McDONALD’S CORPORATION
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	739,546,930
Document Fiscal Period Focus	Q1
Amendment Flag	false
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0000063908

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash and equivalents	$ 2,335.7	$ 4,709.2
Accounts and notes receivable	1,674.1	1,872.4
Inventories, at cost, not in excess of market	49.6	55.6
Prepaid expenses and other current assets	597	511.3
Total current assets	4,656.4	7,148.5
Other assets
Investments in and advances to affiliates	1,177.2	1,201.2
Goodwill	2,813.9	2,782.5
Miscellaneous	4,416.9	4,449.5
Total other assets	8,408	8,433.2
Lease right-of-use asset, net	13,378.6	13,552
Property and equipment
Property and equipment, at cost	41,773.1	41,916.6
Accumulated depreciation and amortization	(17,338.4)	(17,196)
Net property and equipment	24,434.7	24,720.6
Total assets	50,877.7	53,854.3
Current liabilities
Accounts payable	718.6	1,006.8
Lease liability	691.9	705.5
Income taxes	593.5	360.7
Other taxes	270.7	236.7
Accrued interest	322.4	363.3
Accrued payroll and other liabilities	1,637.5	1,347
Total current liabilities	4,234.6	4,020
Long-term debt	33,988.8	35,622.7
Long-term lease liability	12,871.8	13,020.9
Long-term income taxes	1,889.8	1,896.8
Deferred revenues - initial franchise fees	743	738.3
Other long-term liabilities	1,092	1,081
Deferred income taxes	2,048.5	2,075.6
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	16.6	16.6
Additional paid-in capital	8,307.1	8,231.6
Retained earnings	57,614	57,534.7
Accumulated other comprehensive income (loss)	(2,641.9)	(2,573.7)
Common stock in treasury, at cost; 921.1 and 915.8 million shares	(69,286.6)	(67,810.2)
Total shareholders’ equity (deficit)	(5,990.8)	(4,601)
Total liabilities and shareholders’ equity (deficit)	$ 50,877.7	$ 53,854.3

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheet (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Preferred stock, par value	$ 0	$ 0
Preferred stock, authorized	165,000,000	165,000,000
Preferred stock, issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	3,500,000,000	3,500,000,000
Common stock, issued	1,660,600,000	1,660,600,000
Common stock in treasury, shares	913,400,000	915,200,000

Condensed Consolidated Statemen

Condensed Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues
Sales by Company-operated restaurants	$ 2,302.4	$ 2,161.5
Revenues from franchised restaurants	3,262.8	2,877.4
Other revenues	100.4	85.7
Total revenues	5,665.6	5,124.6
Operating costs and expenses
Company-operated restaurant expenses	1,959.2	1,817.6
Franchised restaurants-occupancy expenses	584	571.5
Other restaurant expenses	72.3	67.2
Selling, general & administrative expenses
Depreciation and amortization	92.7	76
Other	584.3	490.4
Other operating (income) expense, net	60.5	(179.4)
Total operating costs and expenses	3,353	2,843.3
Operating income	2,312.6	2,281.3
Interest expense	287.3	300
Nonoperating (income) expense, net	484.1	28.6
Income before provision for income taxes	1,541.2	1,952.7
Provision for income taxes	436.8	415.5
Net income	$ 1,104.4	$ 1,537.2
Earnings per common share-basic (in dollars per share)	$ 1.49	$ 2.06
Earnings per common share-diluted (in dollars per share)	1.48	2.05
Dividends declared per common share (in dollars per share)	$ 1.38	$ 1.29
Weighted average shares outstanding-basic (in shares)	742.6	745.8
Weighted average shares outstanding-diluted (in shares)	747.6	751

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 1,104.4	$ 1,537.2
Foreign currency translation adjustments:
Gain (loss) recognized in accumulated other comprehensive income ("AOCI"), including net investment hedges	(84.2)	(87.7)
Reclassification of (gain) loss to net income	0	10.7
Foreign currency translation adjustments-net of tax benefit (expense) of (59.0) and (90.3)	(84.2)	(77)
Cash flow hedges:
Gain (loss) recognized in AOCI	27.4	23.1
Reclassification of (gain) loss to net income	(10.1)	15
Cash flow hedges-net of tax benefit (expense) of (5.0) and (11.2)	17.3	38.1
Defined benefit pension plans:
Gain (loss) recognized in AOCI	0.1	0.7
Reclassification of (gain) loss to net income	(1.4)	(10.9)
Defined benefit pension plans-net of tax benefit (expense)  of 0.0 and 0.0	(1.3)	(10.2)
Total other comprehensive income (loss), net of tax	(68.2)	(49.1)
Comprehensive income	$ 1,036.2	$ 1,488.1

Condensed Consolidated Statem_3

Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Other comprehensive income (loss), foreign currency translation adjustment, tax	$ (59)	$ (90.3)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax	(5)	(11.2)
Other comprehensive income (loss), pension and other postretirement benefit plans, tax	$ 0	$ 0

Condensed Consolidated Statem_4

Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating activities
Net income	$ 1,104.4	$ 1,537.2
Charges and credits:
Depreciation and amortization	479.7	453.9
Deferred income taxes	(50.5)	(1.5)
Share-based compensation	54.3	27.3
Other	72	(130)
Changes in working capital items	473.4	237.1
Cash provided by operations	2,133.3	2,124
Investing activities
Capital expenditures	(401.2)	(368.7)
Purchases of restaurant businesses	(86.7)	(38.7)
Sales of restaurant businesses	16.5	29.6
Sales of property	4.9	32.8
Other	(88)	100.4
Cash used for investing activities	(554.5)	(244.6)
Financing activities
Net short-term borrowings	6	6.5
Long-term financing issuances	0	0
Long-term financing repayments	(1,350.6)	(1,337.8)
Treasury stock purchases	(1,506.5)	(21.5)
Common stock dividends	(1,025.1)	(962.3)
Proceeds from stock option exercises	58.7	59.1
Other	(12.6)	(7.9)
Cash used for financing activities	(3,830.1)	(2,263.9)
Effect of exchange rates on cash and cash equivalents	(122.2)	(44.9)
Cash and equivalents decrease	(2,373.5)	(429.4)
Cash and equivalents at beginning of period	4,709.2	3,449.1
Cash and equivalents at end of period	$ 2,335.7	$ 3,019.7

Condensed Consolidated Statem_5

Condensed 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	1,537.2			1,537.2
Other comprehensive income (loss), net of tax	(49.1)				(10.2)	38.1	(77)
Comprehensive income	1,488.1
Common stock cash dividends	(962.3)			(962.3)
Treasury stock purchases (in shares)								(0.1)
Treasury stock purchases	(21.5)							$ (21.5)
Share-based compensation	27.3		27.3
Stock option exercises and other (in shares)								0.8
Stock option exercises and other	57.8		28.2					$ 29.6
Ending Balance (in shares) at Mar. 31, 2021		1,660.6						914.5
Ending Balance at Mar. 31, 2021	(7,235.5)	$ 16.6	7,959.1	54,483	(297.8)	(73.2)	(2,264.9)	$ (67,058.3)
Beginning Balance (in shares) at Dec. 31, 2021		1,660.6						915.8
Beginning 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	1,104.4			1,104.4
Other comprehensive income (loss), net of tax	(68.2)				(1.3)	17.3	(84.2)
Comprehensive income	1,036.2
Common stock cash dividends	(1,025.1)			(1,025.1)
Treasury stock purchases (in shares)								(6.1)
Treasury stock purchases	(1,506.5)							$ (1,506.5)
Share-based compensation	54.3		54.3
Stock option exercises and other (in shares)								0.8
Stock option exercises and other	51.3		21.2					$ 30.1
Ending Balance (in shares) at Mar. 31, 2022		1,660.6						921.1
Ending Balance at Mar. 31, 2022	$ (5,990.8)	$ 16.6	$ 8,307.1	$ 57,614	$ (180.8)	$ (7.5)	$ (2,453.6)	$ (69,286.6)

Condensed Consolidated Statem_6

Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Common stock cash dividends (in dollars per share)	$ 1.38	$ 1.29

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	McDonald’s Corporation, the registrant, together with its subsidiaries, is referred to herein as the "Company." The Company, its franchisees and suppliers, are referred to herein as the "System." Basis of Presentation The accompanying condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements contained in the Company’s December 31, 2021 Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. The results for the quarter ended March 31, 2022 do not necessarily indicate the results that may be expected for the full year.

Restaurant Information

Restaurant Information	3 Months Ended
Restaurant Information	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Restaurant Information	Restaurant Information The following table presents restaurant information by ownership type: Restaurants at March 31, 2022 2021 Conventional franchised 21,558 21,496 Developmental licensed 7,981 7,705 Foreign affiliated 8,013 7,283 Total Franchised 37,552 36,484 Company-operated 2,792 2,676 Total Systemwide restaurants 40,344 39,160 Company-operated restaurants include 827 restaurants in Russia and Ukraine that were temporarily closed during the first quarter 2022 due to the ongoing military conflict in the region.

Per Common Share Information

Per Common Share Information	3 Months Ended
Per Common Share Information	Mar. 31, 2022
Earnings Per Share [Abstract]
Per Common Share Information	Per Common Share InformationDiluted 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 5.0 million shares and 5.2 million shares for the quarters 2022 and 2021, respectively. Share-based compensation awards that would have been antidilutive, and therefore were not included in the calculation of diluted weighted-average shares, totaled 1.7 million shares and 3.6 million shares for the quarters 2022 and 2021, respectively.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
Recent Accounting Pronouncements	Mar. 31, 2022
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Leases In July 2021, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2021-05, "Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments" ("ASU 2021-05"). The pronouncement amends the current guidance on classification for a lease that includes variable lease payments that do not depend on an index or rate. Under the amended guidance, a lessor must classify as an operating lease any lease that would otherwise be classified as a sales-type or direct financing lease and that would result in the recognition of a selling loss at lease commencement. ASU 2021-05 is effective for fiscal years beginning after December 15, 2021, including applicable interim periods. The Company adopted the new standard effective January 1, 2022. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (“ASU 2020-04”). The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The adoption of ASU 2020-04 will not have a material impact on the Company's consolidated financial statements. Updates to Significant Accounting Policies Long-lived Assets and Goodwill Long-lived assets and Goodwill are typically 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 or if an indicator of impairment exists. The recent military conflict between Russia and Ukraine has created significant uncertainty and risk in these McDonald’s markets. As such, the Company conducted an analysis after temporarily suspending operations in Russia and Ukraine during the first quarter of 2022. The Company continues to monitor the economic uncertainty, while assessing the financial impact and outlook for restaurant operations in these markets. As a result of the Company's analysis, and in consideration of the totality of events and circumstances, there was no impairment recorded during the first quarter of 2022. As of March 31, 2022, the Company’s net investment in Russia and Ukraine was approximately $600 million, primarily consisting of building and equipment assets. In addition, there was approximately $725 million of cumulative foreign currency translation losses reflected in the AOCI section of the condensed consolidated statement of shareholder’s equity at March 31, 2022.

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Tax Disclosure	Income Taxes The effective income tax rate was 28.3% and 21.3% for the quarters ended 2022 and 2021, respectively. The tax rate for the quarter ended 2022 was impacted by the non-deductibility for tax purposes of the $500 million of nonoperating expense to reserve for a potential settlement related to an international tax matter. Excluding the impacts of the $500 million of nonoperating expense and current and prior year strategic gains and charges, the effective income tax rate was 21.3% and 20.9% for the quarters ended 2022 and 2021, respectively.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company measures certain financial assets and liabilities at fair value. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The Company did not have any significant changes to the valuation techniques used to measure fair value as described in the Company's December 31, 2021 Annual Report on Form 10-K.

Financial Instruments and Hedgi

Financial Instruments and Hedging Activities	3 Months Ended
Financial Instruments and Hedging Activities	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
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 following table presents the fair values of derivative instruments included on the Condensed Consolidated Balance Sheet: Derivative Assets Derivative Liabilities In millions Balance Sheet Classification March 31, 2022 December 31, 2021 Balance Sheet Classification March 31, 2022 December 31, 2021 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 39.8 $ 42.4 Accrued payroll and other liabilities $ (6.2) $ (3.3) Interest rate Prepaid expenses and other current assets 21.8 0.3 Accrued payroll and other liabilities — — Foreign currency Miscellaneous other assets 32.6 28.0 Other long-term liabilities (1.6) (0.5) Interest rate Miscellaneous other assets — 8.6 Other long-term liabilities (41.3) (4.1) Total derivatives designated as hedging instruments $ 94.2 $ 79.3 $ (49.1) $ (7.9) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ 3.2 $ 9.5 Accrued payroll and other liabilities $ — $ — Foreign currency Prepaid expenses and other current assets — 0.5 Accrued payroll and other liabilities (4.0) — Equity Miscellaneous other assets 185.1 200.3 Total derivatives not designated as hedging instruments $ 188.3 $ 210.3 $ (4.0) $ — Total derivatives $ 282.5 $ 289.6 $ (53.1) $ (7.9) The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the quarters ended March 31, 2022 and 2021, respectively: Location of gain or loss Gain (loss) Gain (loss) Gain (loss) recognized in In millions 2022 2021 2022 2021 2022 2021 Foreign currency Nonoperating income/expense $ 13.5 $ 29.9 $ 14.1 $ (17.8) Interest rate Interest expense 21.8 — (1.1) (1.6) Cash flow hedges $ 35.3 $ 29.9 $ 13.0 $ (19.4) Foreign currency denominated debt Nonoperating income/expense $ 259.0 $ 379.7 $ — $ 16.2 Foreign currency derivatives Nonoperating income/expense 4.4 26.6 Foreign currency derivatives (1) Interest expense $ 2.3 $ 3.7 Net investment hedges $ 263.4 $ 406.3 $ — $ 16.2 $ 2.3 $ 3.7 Foreign currency Nonoperating income/expense $ (4.5) $ 2.3 Equity Selling, general & administrative expenses (21.5) 20.4 Equity Other operating income/expense, net — (4.7) Undesignated derivatives $ (26.0) $ 18.0 (1) The amount of gain (loss) recognized in income related to components excluded from effectiveness testing. Fair Value Hedges The Company enters into fair value hedges to reduce the exposure to changes in fair values of certain liabilities. The Company enters into fair value hedges that convert a portion of its fixed rate debt into floating rate debt by use of interest rate swaps. At March 31, 2022, the carrying amount of fixed-rate debt that was effectively converted was an equivalent notional amount of $1.0 billion, which included a decrease of $41.3 million of cumulative hedging adjustments. For the quarter ended March 31, 2022, the Company recognized a $46.1 million loss on the fair value of interest rate swaps, and a corresponding gain on the fair value of the related hedged debt instrument to interest expense. Cash Flow Hedges The Company enters into cash flow hedges to reduce the exposure to variability in certain expected future cash flows. To protect against the reduction in value of forecasted foreign currency cash flows (such as royalties denominated in foreign currencies), the Company uses foreign currency forwards to hedge a portion of anticipated exposures. The hedges cover up to the next 18 months for certain exposures and are denominated in various currencies. As of March 31, 2022, the Company had foreign currency derivatives outstanding with an equivalent notional amount of $1.4 billion that hedged a portion of forecasted foreign currency denominated cash flows. To protect against the variability of interest rates on anticipated bond issuances, the Company may use treasury locks to hedge a portion of expected future cash flows. As of March 31, 2022, the Company had derivatives outstanding with a notional amount of $500 million that hedge a portion of forecasted cash flows. Based on market conditions at March 31, 2022, the $7.5 million in cumulative cash flow hedging losses, after tax, is not expected to have a significant effect on earnings over the next 12 months. Net Investment Hedges The Company uses foreign currency denominated debt (third-party and intercompany) as well as foreign currency derivatives to hedge its investments in certain foreign subsidiaries and affiliates. Realized and unrealized translation adjustments from these hedges are included in shareholders' equity in the foreign currency translation component of Other comprehensive income ("OCI") and offset translation adjustments on the underlying net assets of foreign subsidiaries and affiliates, which also are recorded in OCI. As of March 31, 2022, $12.2 billion of the Company's third-party foreign currency denominated debt, $1.5 billion of the Company's intercompany foreign currency denominated debt, and $267.4 million of foreign currency derivatives were designated to hedge investments in certain foreign subsidiaries and affiliates. Undesignated Derivatives The Company enters into certain derivatives that are not designated for hedge accounting. Therefore, the changes in the fair value of these derivatives are recognized immediately in earnings together with the gain or loss from the hedged balance sheet position. As an example, the Company enters into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its supplemental benefit plan liabilities. Changes in the fair value of these derivatives are recorded in Selling, general & administrative expenses together with the changes in the 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. The changes in the fair value of these derivatives are recognized in Nonoperating (income) expense, net, along with the currency gain or loss from the hedged balance sheet position. Credit Risk The Company is exposed to credit-related losses in the event of non-performance by its derivative counterparties. The Company did not have significant exposure to any individual counterparty at March 31, 2022 and has master agreements that contain netting arrangements. For financial reporting purposes, the Company presents gross derivative balances in the financial statements and supplementary data, including for counterparties subject to netting arrangements. Some of these agreements also require each party to post collateral if credit ratings fall below, or aggregate exposures exceed, certain contractual limits. At March 31, 2022, the Company was required to post an immaterial amount of collateral due to the negative fair value of certain derivative positions. The Company's counterparties were not required to post collateral on any derivative position, other than on certain hedges of the Company’s supplemental benefit plan liabilities where the counterparties were required to post collateral on their liability positions.

Franchise Arrangements

Franchise Arrangements	3 Months Ended
Franchise Arrangements	Mar. 31, 2022
Leases [Abstract]
Franchise Arrangements	Franchise Arrangements Revenues from franchised restaurants consisted of: Quarters Ended March 31, In millions 2022 2021 Rents $ 2,081.1 $ 1,826.1 Royalties 1,168.7 1,038.7 Initial fees 13.0 12.6 Revenues from franchised restaurants $ 3,262.8 $ 2,877.4

Segment Information

Segment Information	3 Months Ended
Segment Information	Mar. 31, 2022
Segment Reporting [Abstract]
Segment Information	Segment Information The Company 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 March 31, 2022. • International Operated Markets - comprised of markets or countries in which the Company operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain and the U.K. The segment is 83% franchised as of March 31, 2022. As of March 31, 2022, all Company-owned restaurants in Russia and Ukraine were temporarily closed due to the ongoing military conflict in the region. • 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 March 31, 2022. The following table presents the Company’s revenues and operating income by segment: Quarters Ended March 31, In millions 2022 2021 Revenues U.S. $ 2,175.6 $ 2,075.5 International Operated Markets 2,922.1 2,556.2 International Developmental Licensed Markets & Corporate 567.9 492.9 Total revenues $ 5,665.6 $ 5,124.6 Operating Income U.S. $ 1,151.0 $ 1,125.5 International Operated Markets 1,129.2 953.8 International Developmental Licensed Markets & Corporate 32.4 202.0 Total operating income $ 2,312.6 $ 2,281.3

Subsequent Events

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2022
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 April 1, 2022, the Company completed the sale of Dynamic Yield, a technology company acquired in 2019, which specializes in personalization and decision logic technology. Dynamic Yield’s technology has been deployed to McDonald’s drive thrus and ordering kiosks in several markets globally. The Company expects to record a pre-tax gain on the sale of approximately $260 million and cash proceeds of approximately $320 million (subject to final working capital adjustments) in the second quarter of 2022. There were no other subsequent events that required recognition or disclosure.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements contained in the Company’s December 31, 2021 Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. The results for the quarter ended March 31, 2022 do not necessarily indicate the results that may be expected for the full year.

Recent Accounting Pronounceme_2

Recent Accounting Pronouncements (Policies)	3 Months Ended
Recent Accounting Pronouncements (Policies)	Mar. 31, 2022
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements Leases In July 2021, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2021-05, "Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments" ("ASU 2021-05"). The pronouncement amends the current guidance on classification for a lease that includes variable lease payments that do not depend on an index or rate. Under the amended guidance, a lessor must classify as an operating lease any lease that would otherwise be classified as a sales-type or direct financing lease and that would result in the recognition of a selling loss at lease commencement. ASU 2021-05 is effective for fiscal years beginning after December 15, 2021, including applicable interim periods. The Company adopted the new standard effective January 1, 2022. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (“ASU 2020-04”). The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The adoption of ASU 2020-04 will not have a material impact on the Company's consolidated financial statements.
Long-lived Assets and Goodwill	Long-lived Assets and GoodwillLong-lived assets and Goodwill are typically 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 or if an indicator of impairment exists.

Restaurant Information (Tables)

Restaurant Information (Tables)	3 Months Ended
Restaurant Information (Tables)	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Restaurant Information by Ownership Type	The following table presents restaurant information by ownership type: Restaurants at March 31, 2022 2021 Conventional franchised 21,558 21,496 Developmental licensed 7,981 7,705 Foreign affiliated 8,013 7,283 Total Franchised 37,552 36,484 Company-operated 2,792 2,676 Total Systemwide restaurants 40,344 39,160

Financial Instruments and Hed_2

Financial Instruments and Hedging Activities (Tables)	3 Months Ended
Financial Instruments and Hedging Activities (Tables)	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Values of Derivative Instruments Included on Consolidated Balance Sheet	The following table presents the fair values of derivative instruments included on the Condensed Consolidated Balance Sheet: Derivative Assets Derivative Liabilities In millions Balance Sheet Classification March 31, 2022 December 31, 2021 Balance Sheet Classification March 31, 2022 December 31, 2021 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 39.8 $ 42.4 Accrued payroll and other liabilities $ (6.2) $ (3.3) Interest rate Prepaid expenses and other current assets 21.8 0.3 Accrued payroll and other liabilities — — Foreign currency Miscellaneous other assets 32.6 28.0 Other long-term liabilities (1.6) (0.5) Interest rate Miscellaneous other assets — 8.6 Other long-term liabilities (41.3) (4.1) Total derivatives designated as hedging instruments $ 94.2 $ 79.3 $ (49.1) $ (7.9) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ 3.2 $ 9.5 Accrued payroll and other liabilities $ — $ — Foreign currency Prepaid expenses and other current assets — 0.5 Accrued payroll and other liabilities (4.0) — Equity Miscellaneous other assets 185.1 200.3 Total derivatives not designated as hedging instruments $ 188.3 $ 210.3 $ (4.0) $ — Total derivatives $ 282.5 $ 289.6 $ (53.1) $ (7.9)
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 quarters ended March 31, 2022 and 2021, respectively: Location of gain or loss Gain (loss) Gain (loss) Gain (loss) recognized in In millions 2022 2021 2022 2021 2022 2021 Foreign currency Nonoperating income/expense $ 13.5 $ 29.9 $ 14.1 $ (17.8) Interest rate Interest expense 21.8 — (1.1) (1.6) Cash flow hedges $ 35.3 $ 29.9 $ 13.0 $ (19.4) Foreign currency denominated debt Nonoperating income/expense $ 259.0 $ 379.7 $ — $ 16.2 Foreign currency derivatives Nonoperating income/expense 4.4 26.6 Foreign currency derivatives (1) Interest expense $ 2.3 $ 3.7 Net investment hedges $ 263.4 $ 406.3 $ — $ 16.2 $ 2.3 $ 3.7 Foreign currency Nonoperating income/expense $ (4.5) $ 2.3 Equity Selling, general & administrative expenses (21.5) 20.4 Equity Other operating income/expense, net — (4.7) Undesignated derivatives $ (26.0) $ 18.0 (1) The amount of gain (loss) recognized in income related to components excluded from effectiveness testing.

Franchise Arrangements (Tables)

Franchise Arrangements (Tables)	3 Months Ended
Franchise Arrangements (Tables)	Mar. 31, 2022
Leases [Abstract]
Revenues from Franchised Restaurants	Revenues from franchised restaurants consisted of: Quarters Ended March 31, In millions 2022 2021 Rents $ 2,081.1 $ 1,826.1 Royalties 1,168.7 1,038.7 Initial fees 13.0 12.6 Revenues from franchised restaurants $ 3,262.8 $ 2,877.4

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
Segment Information (Tables)	Mar. 31, 2022
Segment Reporting [Abstract]
Revenues and Operating Income by Segment	The following table presents the Company’s revenues and operating income by segment: Quarters Ended March 31, In millions 2022 2021 Revenues U.S. $ 2,175.6 $ 2,075.5 International Operated Markets 2,922.1 2,556.2 International Developmental Licensed Markets & Corporate 567.9 492.9 Total revenues $ 5,665.6 $ 5,124.6 Operating Income U.S. $ 1,151.0 $ 1,125.5 International Operated Markets 1,129.2 953.8 International Developmental Licensed Markets & Corporate 32.4 202.0 Total operating income $ 2,312.6 $ 2,281.3

Restaurant Information (Restaur

Restaurant Information (Restaurant Information by Ownership Type) (Details) - Restaurant	Mar. 31, 2022	Mar. 31, 2021
Franchisor Disclosure [Line Items]
Number of restaurants	40,344	39,160
Franchised
Franchisor Disclosure [Line Items]
Number of restaurants	37,552	36,484
Franchised \| Conventional franchised
Franchisor Disclosure [Line Items]
Number of restaurants	21,558	21,496
Franchised \| Developmental licensed
Franchisor Disclosure [Line Items]
Number of restaurants	7,981	7,705
Franchised \| Affiliated
Franchisor Disclosure [Line Items]
Number of restaurants	8,013	7,283
Company-operated
Franchisor Disclosure [Line Items]
Number of restaurants	2,792	2,676

Restaurant Information (Additio

Restaurant Information (Additional Information) (Details)	3 Months Ended
Restaurant Information (Additional Information) (Details)	Mar. 31, 2022Restaurant
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of restaurants, suspended operations	827

Per Common Share Information (D

Per Common Share Information (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Dilutive effect of share-based compensation (in shares)	5	5.2
Antidilutive share-based compensation awards (in shares)	1.7	3.6

Recent Accounting Pronounceme_3

Recent Accounting Pronouncements (Details)	3 Months Ended
Recent Accounting Pronouncements (Details)	Mar. 31, 2022USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Impairment of long-lived assets and goodwill	$ 0
Cumulative foreign currency translation losses	725,000,000
Russia and Ukraine
Revenues from External Customers and Long-Lived Assets [Line Items]
Building and equipment assets in Russia and Ukraine	$ 600,000,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	28.30%	21.30%
Tax impacts of reserve for international tax settlement	$ 500
Effective income tax rate excluding international tax settlement reserve	21.30%	20.90%

Fair Value Measurements (Detail

Fair Value Measurements (Details) $ in Billions	Mar. 31, 2022USD ($)
Fair Value Disclosures [Abstract]
Debt obligations, fair value	$ 35.4
Debt obligations, carrying amount	$ 34

Financial Instruments and Hed_3

Financial Instruments and Hedging Activities (Fair Values of Derivative Instruments Included on Consolidated Balance Sheet) (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Derivatives, Fair Value [Line Items]
Derivative Assets	$ 282.5	$ 289.6
Derivative Liabilities	(53.1)	(7.9)
Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	94.2	79.3
Derivative Liabilities	(49.1)	(7.9)
Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	188.3	210.3
Derivative Liabilities	(4)	0
Foreign currency \| Prepaid expenses and other current assets \| Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	39.8	42.4
Foreign currency \| Prepaid expenses and other current assets \| Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	0	0.5
Foreign currency \| Accrued payroll and other liabilities \| Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(6.2)	(3.3)
Foreign currency \| Accrued payroll and other liabilities \| Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(4)	0
Foreign currency \| Miscellaneous other assets \| Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	32.6	28
Foreign currency \| Other long-term liabilities \| Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Liabilities	(1.6)	(0.5)
Equity \| Prepaid expenses and other current assets \| Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	3.2	9.5
Equity \| Accrued payroll and other liabilities \| Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Equity \| Miscellaneous other assets \| Derivatives not designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	185.1	200.3
Interest rate \| Prepaid expenses and other current assets \| Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	21.8	0.3
Interest rate \| Accrued payroll and other liabilities \| Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Liabilities	0	0
Interest rate \| Miscellaneous other assets \| Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Assets	0	8.6
Interest rate \| Other long-term liabilities \| Derivatives designated as hedging instruments
Derivatives, Fair Value [Line Items]
Derivative Liabilities	$ (41.3)	$ (4.1)

Financial Instruments and Hed_4

Financial Instruments and Hedging Activities (Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flow hedges
Cash flow hedges
Gain (loss) recognized in AOCI	$ 35.3	$ 29.9
Gain (loss) reclassified into income from AOCI	13	(19.4)
Net investment hedges
Net investment hedges
Gain (loss) recognized in AOCI	263.4	406.3
Gain (loss) reclassified into income from AOCI	0	16.2
Gain (loss) recognized in income on derivative	2.3	3.7
Derivatives not designated as hedging instruments
Net investment hedges
Gain (loss) recognized in income on derivative	(26)	18
Foreign currency \| Cash flow hedges
Cash flow hedges
Gain (loss) recognized in AOCI	13.5	29.9
Gain (loss) reclassified into income from AOCI	14.1	(17.8)
Foreign currency \| Derivatives not designated as hedging instruments
Net investment hedges
Gain (loss) recognized in income on derivative	(4.5)	2.3
Interest rate \| Cash flow hedges
Cash flow hedges
Gain (loss) recognized in AOCI	21.8	0
Gain (loss) reclassified into income from AOCI	(1.1)	(1.6)
Foreign currency denominated debt \| Net investment hedges
Net investment hedges
Gain (loss) recognized in AOCI	259	379.7
Gain (loss) reclassified into income from AOCI	0	16.2
Foreign currency derivatives \| Net investment hedges
Net investment hedges
Gain (loss) recognized in AOCI	4.4	26.6
Foreign currency derivatives \| Net investment hedges
Net investment hedges
Gain (loss) recognized in income on derivative	2.3	3.7
Equity \| Derivatives not designated as hedging instruments
Net investment hedges
Gain (loss) recognized in income on derivative	(21.5)	20.4
Equity \| Derivatives not designated as hedging instruments
Net investment hedges
Gain (loss) recognized in income on derivative	$ 0	$ (4.7)

Financial Instruments and Hed_5

Financial Instruments and Hedging Activities (Additional Information) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Cumulative cash flow hedging gain (losses), after tax	$ (7.5)
Debt
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates	12,200
Intercompany Debt
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates	1,500
Cash flow hedges
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, notional amount	500
Net investment hedges
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, notional amount	267.4
Gain (loss) on the fair value of interest rate swaps	2.3	$ 3.7
Interest Rate Risk \| Fair Value Hedging
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Increase (decrease) of cumulative hedging adjustments	(41.3)
Gain (loss) on the fair value of interest rate swaps	(46.1)
Royalty Arrangement
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, notional amount	$ 1,400
Period covered by hedge	18 months
Interest Rate Swap
Derivative Instruments and Hedging Activities Disclosure [Line Items]
Derivative, notional amount	$ 1,000

Franchise Arrangements (Detail)

Franchise Arrangements (Detail) - USD ($) $ in Millions	3 Months Ended
Franchise Arrangements (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Rents	$ 2,081.1	$ 1,826.1
Royalties	1,168.7	1,038.7
Initial fees	13	12.6
Revenues from franchised restaurants	$ 3,262.8	$ 2,877.4

Segment Information (Additional

Segment Information (Additional Information) (Details)	Mar. 31, 2022
U.S.
Noncontrolling Interest [Line Items]
Percentage of segment franchised	95.00%
International Operated Markets
Noncontrolling Interest [Line Items]
Percentage of segment franchised	83.00%
International Developmental Licensed Markets & Corporate
Noncontrolling Interest [Line Items]
Percentage of segment franchised	98.00%

Segment Information (Revenues a

Segment Information (Revenues and Operating Income by Segment) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Revenues	$ 5,665.6	$ 5,124.6
Operating Income	2,312.6	2,281.3
U.S.
Segment Reporting Information [Line Items]
Revenues	2,175.6	2,075.5
Operating Income	1,151	1,125.5
International Operated Markets
Segment Reporting Information [Line Items]
Revenues	2,922.1	2,556.2
Operating Income	1,129.2	953.8
International Developmental Licensed Markets & Corporate
Segment Reporting Information [Line Items]
Revenues	567.9	492.9
Operating Income	$ 32.4	$ 202

Subsequent Events Subsequent Ev

Subsequent Events Subsequent Events (Details) - Dynamic Yield - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Forecast $ in Millions	3 Months Ended
	Jun. 30, 2022USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pre-tax gain (loss) on disposal	$ 260
Cash proceeds of disposal	$ 320