McDonald's operating costs and expenses by type 2023 | Statista (2024)

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McDonald's operating costs and expenses by type 2023 | Statista? ›

McDonald's reported total operating costs and expenses amounting to 13.8 billion U.S. dollars during the 2023 financial year. Company-operated restaurant expenses, including food and paper, payroll and employee benefits, and occupancy and other operating expenses, accounted for the largest sum of the company's costs.

McDonald's annual operating expenses for 2023 were $13.847B, a 0.26% increase from 2022. McDonald's annual operating expenses for 2022 were $13.812B, a 7.34% increase from 2021. McDonald's annual operating expenses for 2021 were $12.867B, a 8.27% increase from 2020.

Cost Structure

McDonald's primary sources of expenses include food and packaging costs, labor costs, and rent and lease expenses. The company's focus on operational efficiency and supply chain management helps to keep these costs under control.

McDonald's annual operating income for 2023 was $11.647B, a 24.28% increase from 2022. McDonald's annual operating income for 2022 was $9.371B, a 9.51% decline from 2021. McDonald's annual operating income for 2021 was $10.356B, a 41.4% increase from 2020.

Cost structure McDonald's costs include variable costs and fixed costs. The variable cost for each product is the producing and selling cost assigned to one burger or one cup of coffee. The fixed costs include rents, utility, and costs of equipment.

The cost of franchising a McDonald's can range from $1 million to $2.3 million, depending on the location and size of the restaurant. Additionally, the annual cost of operations and inventory can range from $500,000 to $1.8 million.

Operating expenses are those expenses that are necessary for the day-to-day running of the business. This can include rent, utilities, insurance, and, in some cases, food.

Here are some examples of cost structures that businesses may encounter: Fixed Costs: These are costs that remain relatively constant regardless of the level of production or sales. Rent or Lease Payments: The cost of renting office space or a manufacturing facility.

McDonald's. As one of the cost leaders in the fast-food industry, McDonald's optimizes its production costs, uses standardized menus, and has efficient supply chain management. This has allowed them to achieve economies of scale, providing customers with consistent quality and value at affordable prices.

Variable costs for McDonald's include food and drink, transportation costs, paper products (paper bags and boxes), plastic products (cups), and wage workers.

How much does McDonald's make per month? ›

The company was founded by Richard and Maurice McDonald. In 1948, they opened their first restaurant in San Bernardino, California. Ray Kroc became involved with the company in 1954 and he purchased the franchise from them in 1961. Today, McDonald's is owned by The Walt Disney Company and Berkshire Hathaway Inc.

As mentioned, McDonald's has earned over $7.3 billion in rental income so far in 2023. This represents 63.5% of the revenue it has generated from its franchisees this year. And it represents 38% of the company's overall revenue, making real estate the biggest moneymaker.

Fixed costs tend to be costs that are based on time rather than the quantity produced or sold by your business. Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs.

Fixed expenses generally cost the same amount each month (such as rent, mortgage payments, or car payments), while variable expenses change from month to month (dining out, medical expenses, groceries, or anything you buy from a store).

Creating a budget is essential to saving for your life goals, and an important part of establishing one includes knowing the difference between your fixed and variable expenses. Fixed expenses are costs that typically remain the same in price and frequency, while variable expenses are costs that can change regularly.

In North America, fast food king McDonald's operated and franchised by far the largest proportion of restaurants in its home country of the United States, accounting for 13,449 units in 2023. Meanwhile, there were 1,466 McDonald's establishments in Canada that same year.

Apple operating expenses for the twelve months ending December 31, 2023 were $267.048B, a 2.38% decline year-over-year. Apple annual operating expenses for 2023 were $268.984B, a 2.15% decline from 2022. Apple annual operating expenses for 2022 were $274.891B, a 7.02% increase from 2021.

There are 18,332 McDonald's in North America as of February 2021. Within its home country, the USA, it operates 13,683 units spread across 4,649 cities. Canada came in second, accounting for more than 1,400 units in the same fiscal year.