Property, Plant and Equipment Disclosure
Asset Age Ratios (Summary)
Average Age
Estimated Total Useful Life
Estimated Age, Time Elapsed Since Purchase
Estimated Remaining Life

McDonald’s Corp., balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Land	7,253)	7,081)	6,686)	6,488)	6,349)
Buildings and improvements on owned land	20,487)	20,059)	18,934)	18,666)	18,219)
Buildings and improvements on leased land	13,417)	13,322)	12,492)	13,283)	13,365)
Equipment, signs and seating	2,586)	2,693)	2,499)	3,032)	3,119)
Other	434)	414)	427)	448)	425)
Property and equipment, at cost	44,177)	43,570)	41,038)	41,917)	41,477)
Accumulated depreciation and amortization	(18,882)	(18,662)	(17,264)	(17,196)	(16,518)
Net property and equipment	25,295)	24,908)	23,774)	24,721)	24,958)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Property and equipment, at cost	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	McDonald’s Corp. property and equipment, at cost increased from 2022 to 2023 and from 2023 to 2024.
Net property and equipment	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	McDonald’s Corp. net property and equipment increased from 2022 to 2023 and from 2023 to 2024.

McDonald’s Corp., asset age ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Average age ratio	51.14%	51.15%	50.26%	48.54%	47.02%
Estimated total useful life (years)	25	24	24	23	24
Estimated age, time elapsed since purchase (years)	13	12	12	11	11
Estimated remaining life (years)	12	12	12	12	13

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	McDonald’s Corp. average age ratio of depreciable property, plant and equipment deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	McDonald’s Corp. estimated total useful life of depreciable property, plant and equipment increased from 2022 to 2023 and from 2023 to 2024.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	McDonald’s Corp. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2022 to 2023 and from 2023 to 2024.
Estimated remaining life		McDonald’s Corp. estimated remaining life of depreciable property, plant and equipment increased from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization	18,882)	18,662)	17,264)	17,196)	16,518)
Property and equipment, at cost	44,177)	43,570)	41,038)	41,917)	41,477)
Land	7,253)	7,081)	6,686)	6,488)	6,349)
Asset Age Ratio
Average age¹	51.14%	51.15%	50.26%	48.54%	47.02%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Average age = 100 × Accumulated depreciation and amortization ÷ (Property and equipment, at cost – Land)
= 100 × 18,882 ÷ (44,177 – 7,253) = 51.14%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	McDonald’s Corp. average age ratio of depreciable property, plant and equipment deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Property and equipment, at cost	44,177)	43,570)	41,038)	41,917)	41,477)
Land	7,253)	7,081)	6,686)	6,488)	6,349)
Depreciation and amortization expense for property and equipment	1,500)	1,502)	1,454)	1,531)	1,469)
Asset Age Ratio (Years)
Estimated total useful life¹	25	24	24	23	24

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Estimated total useful life = (Property and equipment, at cost – Land) ÷ Depreciation and amortization expense for property and equipment
= (44,177 – 7,253) ÷ 1,500 = 25

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Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	McDonald’s Corp. estimated total useful life of depreciable property, plant and equipment increased from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization	18,882)	18,662)	17,264)	17,196)	16,518)
Depreciation and amortization expense for property and equipment	1,500)	1,502)	1,454)	1,531)	1,469)
Asset Age Ratio (Years)
Time elapsed since purchase¹	13	12	12	11	11

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation and amortization expense for property and equipment
= 18,882 ÷ 1,500 = 13

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Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	McDonald’s Corp. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Net property and equipment	25,295)	24,908)	23,774)	24,721)	24,958)
Land	7,253)	7,081)	6,686)	6,488)	6,349)
Depreciation and amortization expense for property and equipment	1,500)	1,502)	1,454)	1,531)	1,469)
Asset Age Ratio (Years)
Estimated remaining life¹	12	12	12	12	13

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Estimated remaining life = (Net property and equipment – Land) ÷ Depreciation and amortization expense for property and equipment
= (25,295 – 7,253) ÷ 1,500 = 12

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Asset age ratio	Description	The company
Estimated remaining life		McDonald’s Corp. estimated remaining life of depreciable property, plant and equipment increased from 2022 to 2023 and from 2023 to 2024.

McDonald’s Corp. (NYSE:MCD)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Disclosure

Asset Age Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life