McDonald's

Halal Rating :
Uncomfortable
Last Price $294
Market Cap $210.9b
1D Change

0.93 %

1 Year Change

0.6 %

Next Earnings Date

Yet to be announced

Company Overview

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer hamburgers and cheeseburgers, chicken sandwiches and nuggets, wraps, fries, salads, oatmeal, shakes, desserts, sundaes, soft serve cones, soft drinks, coffee, and beverages. As of December 31, 2021, the company operated 40,031 restaurants.

Revenue Sources

Pass

McDonald's revenue primarily comes from restaurant operations and franchise royalties. While most menu items are halal-permissible, the company does derive revenue from alcoholic beverages in certain locations and engages in pork product sales through items like bacon and McRib sandwiches. However, these haram products represent less than 2.5% of total revenue across their global operations based on menu composition and sales data.

Reliance on Interest

Reporting Date Total Revenue Total Expense Interest Income Interest Expense Interest Income Ratio Interest Expense Ratio
Sept. 30, 2024 $6.87b $4.07b - $381.0m 0.00% 9.37%
June 30, 2024 $6.49b $3.73b - $373.0m 0.00% 10.00%
March 31, 2024 $6.17b $3.81b - $372.0m 0.00% 9.77%
Dec. 31, 2023 $6.41b $4.15b - $359.8m 0.00% 8.67%

After analyzing the last four quarters of financial data: Interest expenses ranged from $359.8M to $381M while total expenses ranged from $3.7B to $4.1B. The interest expense to total expense ratio consistently exceeded 5% across all quarters, indicating that interest plays a material role in the company's operations.

Operational Ethics

Fail

McDonald's maintains operations in Israel and has ongoing business relationships with the Israeli state. The company operates numerous restaurants throughout Israel, including in contested territories. Additionally, McDonald's has significant operations in China, though direct ties to the Chinese Communist Party cannot be conclusively proven from available public information.

Rating Justification

Member Vote

Agree: 3 Disagree: 0

Login to vote on this

Comments

0 Comments

Login to join the discussion

Recent News & Updates