What is McDonald's's food and paper costs?

McDonald's (MCD) reported food and paper costs of $751.50M in Q4 2025.

How has McDonald's's food and paper costs changed year-over-year?

McDonald's's food and paper costs increased by 0.4% year-over-year, from $748.75M to $751.50M.

What is the long-term trend for McDonald's's food and paper costs?

Over 4 years (2021 to 2025), McDonald's's food and paper costs has grown at a -0.7% compound annual growth rate (CAGR), from $3.10B to $3.01B.

What does food and paper costs mean?

The total cost of ingredients and packaging used by company-owned restaurants.

Cost of Revenue

Food and paper costs

McDonald's Food and paper costs remained flat by 0.0% to $751.50M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 0.4%, from $748.75M to $751.50M. Over 4 years (FY 2021 to FY 2025), Food and paper costs shows relatively stable performance with a -0.7% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementIncome Statement

SectionCost of Revenue

CategoryEfficiency

SignalLower is better

VolatilityModerate

First reportedQ1 2013

Last reportedQ4 2025

How to read this metric

An increase relative to revenue suggests rising commodity costs or inefficient inventory management, while a decrease indicates improved procurement or menu pricing power.

Detailed definition

This metric represents the direct costs associated with food, beverage ingredients, and packaging materials utilized in...

Peer comparison

Comparable to 'Cost of Goods Sold' or 'Food and Beverage Costs' in other restaurant and hospitality chains.

Metric ID: is_mcd_food_and_paper_costs

Historical Data

5 years

	FY'21	FY'22	FY'23	FY'24	FY'25
Value	$3.10B	$2.74B	$3.04B	$3.00B	$3.01B
YoY Change	—	-11.6%	+11.0%	-1.4%	+0.4%

Range$2.74B – $3.10B

CAGR-0.7%

Avg YoY Growth-0.4%

Median YoY Growth-0.5%

Frequently Asked Questions

What is McDonald's's food and paper costs?: McDonald's (MCD) reported food and paper costs of $751.50M in Q4 2025.
How has McDonald's's food and paper costs changed year-over-year?: McDonald's's food and paper costs increased by 0.4% year-over-year, from $748.75M to $751.50M.
What is the long-term trend for McDonald's's food and paper costs?: Over 4 years (2021 to 2025), McDonald's's food and paper costs has grown at a -0.7% compound annual growth rate (CAGR), from $3.10B to $3.01B.
What does food and paper costs mean?: The total cost of ingredients and packaging used by company-owned restaurants.