Cost of Revenue

Payroll and employee benefits

McDonald's Payroll and employee benefits remained flat by 0.0% to $726.25M in Q4 2025 compared to the prior quarter. Year-over-year, this metric declined by 1.8%, from $739.75M to $726.25M. Over 4 years (FY 2021 to FY 2025), Payroll and employee benefits shows relatively stable performance with a 2.1% 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 may signal rising labor costs or staffing inefficiencies, whereas a decrease suggests improved labor productivity or optimized scheduling.

Detailed definition

This metric encompasses all wages, salaries, payroll taxes, and employee benefit expenses incurred at company-operated r...

Peer comparison

Comparable to 'Labor Costs' or 'Personnel Expenses' reported by other retail and restaurant operators.

Metric ID: is_mcd_restaurant_payroll_and_benefits

Historical Data

5 years
 FY'21FY'22FY'23FY'24FY'25
Value$2.68B$2.62B$2.89B$2.96B$2.91B
YoY Change—-2.2%+10.3%+2.5%-1.8%
Range$2.62B – $2.96B
CAGR+2.1%
Avg YoY Growth+2.2%
Median YoY Growth+0.4%

Frequently Asked Questions

What is McDonald's's payroll and employee benefits?
McDonald's (MCD) reported payroll and employee benefits of $726.25M in Q4 2025.
How has McDonald's's payroll and employee benefits changed year-over-year?
McDonald's's payroll and employee benefits decreased by 1.8% year-over-year, from $739.75M to $726.25M.
What is the long-term trend for McDonald's's payroll and employee benefits?
Over 4 years (2021 to 2025), McDonald's's payroll and employee benefits has grown at a 2.1% compound annual growth rate (CAGR), from $2.68B to $2.91B.
What does payroll and employee benefits mean?
The total labor-related expenses for staff working at company-owned restaurant locations.