Every month, McDonald’s owner/operators send their financials up the line and receive a single number in return. Most owner/operators know the arithmetic behind the score. What’s harder to see is how the ratios pull on one another. A new loan can strengthen working capital while raising leverage and lowering estimated net equity, and without a clear read on which ratio moved your score, it’s difficult to know which lever will move it back.

This guide walks multi-unit owner/operators, finance leads, and next generation candidates through the five ratios that carry the most weight in a financial viability review: cash flow coverage, estimated net equity %, working capital, liability turnover, and leverage. For each one, you’ll learn what the number measures, the benchmark to aim for, and where to start when it slips. You’ll also find a quick service prime cost benchmark and a daily, weekly, and monthly review rhythm to help protect unit-level profitability, from cash position to food over base. And if your score has already fallen below the standard, you’ll find three first moves that don’t require new financing.

Aprio’s Restaurant, Franchise, & Hospitality team has worked alongside McDonald’s owner/operators for more than 50 years. We prepare and send monthly financial statements to McDonald’s, provide outsourced restaurant accounting, and review the ratios alongside the numbers. Our aim is simple: when a number starts to slip, you hear about it in a conversation with your advisor rather than in a “does not meet” rating.

Download the guide below as a practical reference to review before your next monthly submission goes out.

Harness the Power of Ratios: How McDonald’s Scores Your Financial Viability Download