McDonald's Corporation
McDonald's Corp. operates a global restaurant system built around franchised and company-operated McDonald's locations serving burgers, chicken, breakfast, beverages and desserts. The company earns revenue mainly from franchise rent and royalties, plus sales from company-operated restaurants, while using digital, delivery and drive-thru to drive guest traffic and systemwide sales.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueRoyalties, rent and other fees from franchised restaurants and licensees.
Food and beverage sales from restaurants the company directly operates.
Mobile app, loyalty, personalized offers and related customer engagement tools.
Delivery-enabled sales and partnerships with delivery providers.
Initial fees, development-related income and other ancillary restaurant revenue.
Customers
McDonald's serves end consumers who buy meals for convenience, value and familiarity, with demand spanning breakfast, lunch, dinner and snacking occasions. On the business side, the company’s key counterparties are franchisees, developmental licensees and affiliates that operate restaurants under McDonald's brand standards and pay fees tied to sales. Digital users and loyalty members are increasingly important because they generate repeat visits, personalized offers and higher-frequency ordering.
Buy burgers, chicken, fries, breakfast and beverages for convenience, value and familiarity.
Use the app, offers and rewards to order more frequently and engage with the brand.
Order from home or work through app and third-party delivery channels for convenience.
Operate restaurants under McDonald's system and pay rent, royalties and fees.
Buy locally adapted menus in more than 100 countries, supporting global scale.
Strategy
McDonald's strategy centers on the “4D’s”: digital, delivery, drive-thru and restaurant development, supported by menu innovation and a stronger consumer platform. Management is also modernizing the organization through GBS and technology investments to improve speed, efficiency and execution while protecting the core menu and brand consistency.
Higher engagement can increase visit frequency, personalization and systemwide sales.
Delivery expands occasions and app ordering improves convenience and data capture.
Iconic products drive traffic, while menu innovation keeps the brand relevant.
New openings and faster service support guest counts and market share.
Technology and GBS are intended to improve speed, efficiency and decision-making.
Geography
McDonald's operates in more than 100 countries, with reporting focused on the U.S., International Operated Markets, and International Developmental Licensed Markets & Corporate. The company says delivery reaches nearly 90% of restaurants across about 100 markets, and the Middle East conflict has weighed on sales in developmental licensed markets. Currency translation also matters because results are exposed to movements in the euro, Australian dollar, Canadian dollar and other major currencies.
Risks
McDonald's is exposed to franchisee health, consumer spending shifts, foreign exchange and geopolitical disruption because most restaurants are franchised and the business depends on systemwide sales. The company also faces execution risk in digital, delivery and menu innovation, plus margin pressure from labor, food, occupancy and promotional activity in a highly competitive quick-service market.
A heavily franchised model depends on operators investing in and running restaurants effectively.
The company said the war in the Middle East has negatively impacted sales in developmental licensed markets.
Exposure: International Developmental Licensed Markets
Quick-service demand is sensitive to value perception and discretionary spending.
Exposure: Comparable sales and guest counts
A large international footprint means reported results move with exchange rates.
The strategy relies on app adoption, loyalty engagement and delivery mix improvement.
Exposure: Technology rollout and partner integration
Accounting
Judgemental itemsFranchise rent/royalties, company-operated sales and initial fees are recognized differently and affect comparability.
Impact: Mix shifts can change reported growth even when systemwide sales are stable
International earnings are translated into U.S. dollars, creating reported volatility.
Impact: Constant-currency results may differ materially from reported results
Accelerating the Organization has generated recurring charges and store-related costs.
Impact: Can reduce operating income and obscure underlying trends
Restaurant closures and portfolio changes create non-recurring expenses.
Impact: Affects other operating expense and operating margin
The business model uses long-term restaurant and franchise arrangements with significant contractual terms.
Impact: Can influence balance sheet leverage and expense timing
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Last updated: 11/08/2026