McDonald's financial statements demonstrated consistent growth from 2002 to 2014, with steady increases in revenue, earnings, and asset utilization, buoyed by an upward trajectory in operating margins. This period also highlighted a robust correlation with market capitalization.

However, a shift occurred post-2014, where revenue began a downward trend, while earnings remained relatively stable, showing slight upward movement. Concurrently, dividend yield displayed a declining pattern after 2014.

Delving deeper into the financial structure, a notable surge in the debt ratio emerged post-2014, with total assets consistently lagging behind total liabilities. Between 2002 and 2014, total debt remained relatively stable, but from 2016 to 2018, it experienced an uptick, followed by a substantial escalation from 2018 to 2022.

This downturn was predominantly attributed to the pronounced rise in the debt ratio, exacerbating financial strain and intensifying pressure on the company's financial health.

INSIGHTS

To address the escalating debt ratio and stabilize financial performance, McDonald's should focus on strategic debt management strategies, such as refinancing high-cost debt, optimizing capital structure, and prudent investment decisions. Additionally, exploring avenues for revenue diversification and operational efficiency could help mitigate the impact of declining revenue streams and foster long-term sustainability.