Honda vs McDonald's: Revenue, Profit and Business Model
Honda reported ~$146B of revenue in FY2026 and a net loss of ~$2.8B. McDonald's reported $26.9B of revenue in FY2025 and $8.6B of net income.
Latest financial snapshot
Honda
- Latest revenue
- ~$146B (FY2026)
- Net income
- ~-$2.8B
- Net margin
- -1.9%
- Revenue growth
- +4.1% a year, FY2016–FY2026
McDonald's
- Latest revenue
- $26.9B (FY2025)
- Net income
- $8.6B
- Net margin
- 31.9%
- Revenue growth
- +1.0% a year, FY2016–FY2025
Financial summary
Honda
Honda's revenue rose from ~$97.5 billion (JPY 14.55 trillion) in FY2022 to ~$145 billion (JPY 21.69 trillion) in FY2025 as a weaker yen and strong US hybrid demand lifted results. FY2026 revenue edged up to $146 billion (JPY 21.80 trillion), but EV charges of ~$10.6 billion (JPY 1.58 trillion) produced a ~$2.78 billion (JPY 414.3 billion) operating loss and a ~$2.84 billion (JPY 423.9 billion) net loss. Without those charges, adjusted operating profit was ~$6.97 billion (JPY 1.04 trillion). In Q1 FY2027 (April to June 2026) operating profit hit a record ~$3.56 billion (JPY 530.7 billion) and net profit was ~$3.02 billion (JPY 450.9 billion), and Honda raised its FY2027 net profit forecast to ~$2.68 billion (JPY 400 billion).
McDonald's
McDonald's corporate revenue ($26.885 billion in 2025, up 3.7%) is a fraction of the roughly $139 billion that customers spend across the system, because franchised restaurant sales are not booked as company revenue. What the company does book is mostly franchise rent and royalties, which explains net income of $8.563 billion in 2025 and operating margins well above typical restaurant operators. In Q2 2026, revenue rose 4% (2% in constant currency) to about $7.1 billion, diluted EPS was $3.32 ($3.38 adjusted), and systemwide sales grew 5% to $37 billion. The company returns most free cash flow through dividends, which it has raised every year since 1976, and share buybacks.
Revenue and profit by year
Honda
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$146B | ~-$2.8B | -1.9% | +0.5% | Source |
| FY2025 | ~$145.3B | ~$5.6B | 3.9% | +6.2% | Source |
| FY2024 | ~$136.9B | ~$7.4B | 5.4% | +20.8% | Source |
| FY2023 | ~$113.3B | ~$4.4B | 3.9% | +16.2% | Source |
| FY2022 | ~$97.5B | ~$4.7B | 4.9% | +10.5% | Source |
| FY2021 | ~$88.2B | ~$4.4B | 5.0% | -11.8% | Source |
| FY2020 | ~$100B | ~$3.1B | 3.1% | -6.0% | Source |
| FY2019 | ~$106.5B | ~$4.1B | 3.8% | +3.4% | Source |
| FY2018 | ~$102.9B | ~$7.1B | 6.9% | +9.7% | Source |
| FY2017 | ~$93.8B | ~$4.1B | 4.4% | -4.1% | Source |
| FY2016 | ~$97.8B | ~$2.3B | 2.4% | — | Source |
McDonald's
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $26.9B | $8.6B | 31.9% | +3.7% | Source |
| FY2024 | $25.9B | $8.2B | 31.7% | +1.7% | Source |
| FY2023 | $25.5B | $8.5B | 33.2% | +10.0% | Source |
| FY2022 | $23.2B | $6.2B | 26.6% | -0.2% | Source |
| FY2021 | $23.2B | $7.5B | 32.5% | +20.9% | Source |
| FY2020 | $19.2B | $4.7B | 24.6% | -10.1% | Source |
| FY2019 | $21.4B | $6B | 28.2% | +0.5% | Source |
| FY2018 | $21.3B | $5.9B | 27.9% | -6.8% | Source |
| FY2017 | $22.8B | $5.2B | 22.8% | -7.3% | Source |
| FY2016 | $24.6B | $4.7B | 19.0% | — | Source |
Where the revenue comes from
Honda
- Automobiles~65%
Passenger vehicles, hybrids, EVs, SUVs, parts, accessories, and related service revenue sold through global dealer networks.
- Motorcycles~17%
Motorcycles, scooters, parts, and related products sold globally, especially in Asia and other high-volume mobility markets.
- Financial Services~16%
Vehicle loans, leases, dealer financing, and related finance products that support automobile and motorcycle demand.
- Power Products and Other~2%
Power equipment, marine engines, aircraft-related activity, and other mobility-adjacent operations.
McDonald's
- Franchise rent and royalties~45%
Franchise rent and royalties
- Company-operated restaurants~25%
Company-operated restaurants
- Licensing and delivery economics~15%
Licensing and delivery economics
Business model and strategy
Honda
How it makes money
Honda earns money in four reportable segments. Automobiles (Honda and Acura cars and light trucks, led by the CR-V, Civic, Accord and hybrid e:HEV models) generate most revenue, with North America the largest profit market. Motorcycles generate high-volume, high-margin sales, especially in India, Indonesia, Vietnam and Brazil, and posted record profit in FY2026.
Growth strategy
Honda reset its electrification plan in 2026. In March it cancelled the US-built Honda 0 SUV, 0 Saloon and Acura RSX EVs, and in May it scrapped its 2030 and 2040 EV sales targets, including the goal of selling only battery-electric and fuel-cell vehicles by 2040. The new plan leans on hybrids, a next-generation e:HEV system, motorcycles in emerging markets, and more flexible EV timing.
Competitive advantage
Honda's edge comes from three things. It leads the global motorcycle market with roughly 40% unit share, which gives it a profit base most automakers lack. Its two-motor hybrid system is competitive in the markets where hybrid demand is growing fastest, especially the US.
McDonald's
How it makes money
About 95% of McDonald's restaurants are owned and operated by franchisees or developmental licensees. The corporation makes money in three main ways: (1) rent, because it owns or leases the land and buildings at many franchised sites and charges franchisees rent, often tied to a percentage of sales; (2) royalties, a percentage of each restaurant's monthly sales;
Growth strategy
McDonald's growth plan, branded Accelerating the Arches, rests on marketing, core menu (burgers, chicken, coffee), and the 3 D's: digital, delivery, and drive-thru. The company targets roughly 50,000 restaurants worldwide by the end of 2027, with China, other developmental licensed markets, and the U.S. contributing the largest number of openings.
Competitive advantage
McDonald's advantage is scale that rivals cannot easily copy: more than 45,000 restaurants, control of prime real estate at many franchised sites, a long-tenured franchisee base that funds most store capital, and a supply chain that buys beef, potatoes, chicken, and packaging at volumes few chains match.
Questions about Honda vs McDonald's
Which company has higher revenue — Honda Motor Co., Ltd. or McDonald's Corporation?
Honda Motor Co., Ltd. reported ~$146B (FY2026), while McDonald's Corporation reported $26.9B (FY2025). By last reported revenue, Honda Motor Co., Ltd. is the larger business, with McDonald's Corporation reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Honda Motor Co., Ltd. vs McDonald's Corporation?
Honda Motor Co., Ltd.'s market capitalisation stands at $50.3B, while McDonald's Corporation's is $175.7B. McDonald's Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Honda Motor Co., Ltd..
Which is more financially efficient — Honda Motor Co., Ltd. or McDonald's Corporation?
Honda Motor Co., Ltd. generates $748k / employee in revenue per employee, while McDonald's Corporation generates $179k / employee. Honda Motor Co., Ltd. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Honda Motor Co., Ltd. and McDonald's Corporation make money?
Honda Motor Co., Ltd. and McDonald's Corporation generate revenue in fundamentally different ways. Honda Motor Co., Ltd.: Honda earns money in four reportable segments. McDonald's Corporation: About 95% of McDonald's restaurants are owned and operated by franchisees or developmental licensees.
Which company is valued higher relative to revenue — Honda Motor Co., Ltd. or McDonald's Corporation?
On a price-to-sales (P/S) basis, Honda Motor Co., Ltd. trades at 0.3x P/S and McDonald's Corporation at 6.5x P/S. McDonald's Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Honda Motor Co., Ltd.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Honda Motor Co., Ltd. bigger than McDonald's Corporation?
By last reported revenue, Honda Motor Co., Ltd. (~$146B (FY2026)) is the larger company compared to McDonald's Corporation ($26.9B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Honda vs McDonald's overview