Unrecognized Tax Benefits - Income Tax Penalties and Interest Accrued
McDonald's Unrecognized Tax Benefits - Income Tax Penalties and Interest Accrued increased by 5.9% to $18M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 5.9%, from $17M to $18M. Over 5 years (FY 2020 to FY 2025), Unrecognized Tax Benefits - Income Tax Penalties and Interest Accrued shows a downward trend with a -36.7% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase indicates growing potential costs associated with tax disputes, while a decrease suggests the resolution of such risks.
Detailed definition
This represents the accrued interest and potential penalties associated with the unrecognized tax benefits mentioned abo...
Peer comparison
Standard component of tax risk disclosures for large, multinational enterprises.
unrecognized_tax_benefits_interest_penaltiesHistorical Data
| Q4 '21 | Q4 '22 | Q4 '23 | Q4 '24 | Q4 '25 | |
|---|---|---|---|---|---|
| Value | $183.6M | $24.7M | $25M | $17M | $18M |
| QoQ Change | — | -86.5% | +1.2% | -32.0% | +5.9% |
| YoY Change | — | -86.5% | +1.2% | -32.0% | +5.9% |
Unrecognized Tax Benefits - Income Tax Penalties and Interest Accrued at Other Companies
Frequently Asked Questions
- What is McDonald's's unrecognized tax benefits - income tax penalties and interest accrued?
- McDonald's (MCD) reported unrecognized tax benefits - income tax penalties and interest accrued of $18M in Q4 2025.
- How has McDonald's's unrecognized tax benefits - income tax penalties and interest accrued changed year-over-year?
- McDonald's's unrecognized tax benefits - income tax penalties and interest accrued increased by 5.9% year-over-year, from $17M to $18M.
- What is the long-term trend for McDonald's's unrecognized tax benefits - income tax penalties and interest accrued?
- Over 5 years (2020 to 2025), McDonald's's unrecognized tax benefits - income tax penalties and interest accrued has grown at a -36.7% compound annual growth rate (CAGR), from $177.4M to $18M.
- What does unrecognized tax benefits - income tax penalties and interest accrued mean?
- The estimated interest and penalties the company would owe if its uncertain tax claims are rejected by tax authorities.