What is McDonald's's leasehold improvements?

McDonald's (MCD) reported leasehold improvements of $15.51B in Q4 2025.

How has McDonald's's leasehold improvements changed year-over-year?

McDonald's's leasehold improvements increased by 15.6% year-over-year, from $13.42B to $15.51B.

What is the long-term trend for McDonald's's leasehold improvements?

Over 5 years (2020 to 2025), McDonald's's leasehold improvements has grown at a 3.0% compound annual growth rate (CAGR), from $13.36B to $15.51B.

What does leasehold improvements mean?

The total value of improvements made to rented properties that are capitalized as assets.

Leasehold improvements

Non-Current Assets

McDonald's Leasehold improvements increased by 15.6% to $15.51B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 15.6%, from $13.42B to $15.51B. Over 5 years (FY 2020 to FY 2025), Leasehold improvements shows an upward trend with a 3.0% CAGR.

Analysis

StatementBalance Sheet Statement

SectionNon-Current Assets

CategoryCapital Allocation

SignalContext dependent

VolatilityStable

First reportedQ4 2015

Last reportedQ3 2025

Parent metricPP&E (Net)

How to read this metric

An increase suggests active investment in store renovations or facility upgrades, while a decrease may indicate reduced capital spending on leased infrastructure.

Detailed definition

This represents the capitalized costs of alterations and improvements made to leased restaurant properties or office spa...

Peer comparison

Commonly reported by retail and restaurant chains with significant leased real estate portfolios.

Metric ID: ppe_leasehold_improvements

Historical Data

5 periods

	Q4 '21	Q4 '22	Q4 '23	Q4 '24	Q4 '25
Value	$13.28B	$12.49B	$13.32B	$13.42B	$15.51B
QoQ Change	—	-6.0%	+6.6%	+0.7%	+15.6%
YoY Change	—	-6.0%	+6.6%	+0.7%	+15.6%
% of PP&E (Net)	805.7%	732.1%	798.5%	855.7%	976.4%
Share Change	—	-73.6pp	+66.3pp	+57.2pp	+120.8pp

Range$12.49B – $15.51B

CAGR+16.7%

Avg YoY Growth+4.2%

Median YoY Growth+3.7%

Current Streak3 quarters growth

Frequently Asked Questions

What is McDonald's's leasehold improvements?: McDonald's (MCD) reported leasehold improvements of $15.51B in Q4 2025.
How has McDonald's's leasehold improvements changed year-over-year?: McDonald's's leasehold improvements increased by 15.6% year-over-year, from $13.42B to $15.51B.
What is the long-term trend for McDonald's's leasehold improvements?: Over 5 years (2020 to 2025), McDonald's's leasehold improvements has grown at a 3.0% compound annual growth rate (CAGR), from $13.36B to $15.51B.
What does leasehold improvements mean?: The total value of improvements made to rented properties that are capitalized as assets.