McDonald’s Corporation: Under the Golden Arches, a Financial Juggernaut

Financial Performance and Multi-Year Trends

McDonald’s Corporation has demonstrated resilient financial performance over the past several years, rebounding from a pandemic slump to reach new highs. In 2019, before the pandemic, McDonald’s posted roughly $21 billion in revenue. The disruptions of 2020 saw sales dip (consolidated revenues fell to about $19 billion that year), but the company quickly recovered. By 2021, revenue was back above $23 billion, and growth continued. Full-year 2023 revenue hit $25.5 billion, up nearly 10% from 2022, marking an all-time high for the company. For 2024, revenues were roughly flat at $25.9 billion, reflecting stabilization after the prior year’s big jump. This trajectory underscores McDonald’s ability to not only regain lost ground but exceed its pre-pandemic scale.

Profitability has expanded even more impressively. McDonald’s operates with exceptionally high margins for a restaurant business – a direct result of its franchising-heavy model (discussed further below). In 2023, operating income was $11.6 billion (up 24% year-on-year) and the operating margin reached 46%. To put that in perspective, McDonald’s margins are multiple times higher than those of most restaurant peers; for example, Starbucks’ operating margin in 2023 was about 16%. McDonald’s margins have steadily climbed in recent years (operating margin was ~40% in 2021-2022), reflecting strategic cost control and the increased share of high-margin franchise revenue. Net income has similarly grown, boosted by strong sales and cost efficiencies – diluted earnings per share leaped 38% in 2023. Even accounting for one-time gains and charges in prior years (such as the 2022 exit from the Russia market and certain tax effects), the underlying trend is clear: McDonald’s profitability today is at record levels, thanks to rising sales and its efficient franchise-driven cost structure.

Several key growth drivers have fueled McDonald’s financial performance. One is menu strategy and marketing – the company has leveraged popular core items (like the Big Mac and fries) while introducing limited-time offerings and celebrity “meal” promotions that drove customer traffic. Another major driver is the expansion of digital sales: ordering through the mobile app, self-service kiosks, and delivery integrations has increased customer convenience and average spending. In McDonald’s top markets, digital platforms (including mobile orders and delivery) now account for a significant portion of systemwide sales, contributing meaningfully to recent revenue growth. The company’s loyalty program, launched in 2021, surpassed 150 million global members in 2023 and is aiming for 250 million by 2027 – a customer base that McDonald’s can directly engage with offers, personalized marketing, and rewards to drive repeat sales. Additionally, McDonald’s has maintained pricing power in an inflationary environment, strategically raising menu prices over 2021–2023. Those price increases, combined with steady customer demand, have boosted comparable sales. In 2022 and 2023, McDonald’s achieved strong same-store sales growth even as traffic counts in the broader restaurant industry began to normalize post-lockdowns. Altogether, effective marketing, menu innovation, digital initiatives, and pricing have enabled McDonald’s to grow revenue and profit faster than many competitors in the fast-food sector.

Notably, McDonald’s overall business footprint (inclusive of franchise locations) is far larger than its reported corporate revenue alone would suggest. Systemwide sales – which include total sales at franchisee-operated restaurants – provide a sense of the brand’s scale. McDonald’s systemwide sales topped $100 billion as early as 2019, and by 2023 had reached a staggering $129.5 billion globally. This figure, which grew about 30% from 2019 to 2023, underscores the massive volume of food and beverages moving through McDonald’s restaurants worldwide. It also highlights how the company’s shift toward franchising (which reduces corporate-reported revenue but not the system’s sales volume) can mask the growth of McDonald’s overall economic footprint. In summary, by the mid-2020s McDonald’s is delivering record sales and earnings, cementing its status as a financial juggernaut under the Golden Arches.

U.S. vs. International Segment Performance

McDonald’s is truly a global enterprise, with the United States and international markets each contributing heavily to its financial results. According to the company’s filings, roughly 40% of McDonald’s revenue comes from the U.S. market, while about 60% is generated internationally. The firm manages its empire in three broad geographic segments – the U.S.; International Operated Markets (major markets like Canada, the U.K., France, Germany, Australia, etc. that McDonald’s corporation directly runs or closely oversees); and International Developmental Licensed Markets (regions where local partners own and operate restaurants under franchise/license agreements). In the most recent breakdown, the U.S. accounted for approximately 41% of revenues, International Operated Markets about 49%, and the remaining 10% came from the licensed markets and corporate activities. This mix illustrates that while the U.S. remains McDonald’s single biggest country, a majority of sales now occur outside the United States, spread across dozens of countries.

Growth trends have differed somewhat between the U.S. and abroad. In the past few years, the U.S. business has been driven by strong same-store sales growth (helped by menu price increases and successful marketing campaigns like the BTS Meal and other celebrity collaborations). U.S. comparable sales rose about 5% in 2019 and surged in the double digits in 2021 as the economy reopened. The pace moderated in 2022–2023, but remained positive even amid higher menu prices. International markets have shown broad-based strength as well. Europe and other top overseas markets enjoyed robust sales in 2021–2023, partly due to pandemic recovery and also due to McDonald’s adaptations like expanding delivery and digital ordering in those regions. There have been headwinds too – for instance, currency exchange rates have at times dampened reported international revenue (a strong U.S. dollar in 2022 meant that overseas sales translated into fewer dollars, causing a slight revenue decline that year despite underlying growth). But on a constant-currency basis, McDonald’s international segment has been growing solidly. The company has also been expanding its restaurant count aggressively in certain international markets. For example, China (operated via a master franchisee) and other parts of Asia have seen rapid unit growth, and McDonald’s continues to see whitespace for new restaurants abroad. In 2023 alone, over 2,000 new McDonald’s restaurants opened worldwide, the highest rate of expansion in years – much of this development is in international markets with rising demand for quick-service dining.

It’s worth noting that McDonald’s U.S. operations differ in composition from its international ones in ways that affect the financials. The U.S. business is almost entirely franchised (around 95% of U.S. McDonald’s locations are owned by franchisees, not the company), generating revenue mainly through franchise royalties and rents. This yields very high margins on U.S. revenue. Internationally, McDonald’s directly owns a larger proportion of stores in certain countries (especially in the “International Operated” markets segment), meaning it records the full restaurant sales as revenue but also incurs the direct operating costs – resulting in a lower margin percentage on those sales. McDonald’s has been refranchising many of its overseas stores as well over the past decade to mirror the asset-light U.S. model. The end result is that franchise fees and royalty income are a major component of both U.S. and international revenue, but the exact mix varies by region. Despite these differences, both segments have been highly profitable: the U.S. remains McDonald’s cash cow, while the top international markets like Europe are delivering strong growth and now collectively outsell the U.S. in revenue.

The balance between U.S. and international exposure also gives McDonald’s a degree of diversification. When consumer spending softened in Europe or China during pandemic waves, the U.S. often offset some of that weakness, and vice versa. This global portfolio approach helped McDonald’s navigate uneven recoveries across countries. For instance, in early 2022, European sales rebounded sharply while parts of Asia were slower; by late 2022 into 2023, U.S. growth led the way as American consumers kept eating out despite inflation. McDonald’s scale in over 100 countries provides a natural hedge against regional downturns, even as it also subjects the company to foreign currency swings and varying local economic conditions. On the whole, McDonald’s has leveraged both its domestic stronghold and its international reach to deliver steady growth. Today, a burger bought in Paris or Tokyo contributes as much to McDonald’s top line (via royalties) as one sold in Chicago – a testament to how geographically diversified the Golden Arches have become.

Franchise Model and Real Estate Empire

A core reason for McDonald’s robust financial performance is its franchise-centric business model, which fundamentally shapes the company’s cost structure and income streams. Approximately 95% of McDonald’s 44,000 restaurants worldwide are operated by independent franchisees. In other words, McDonald’s itself directly owns and runs only a few thousand stores, while the vast majority are run by local owner-operators who pay McDonald’s for the right to do so. This model allows McDonald’s to grow rapidly with lower capital investment and gives it a stable, high-margin revenue source: franchisees pay royalties and rent based on their sales. These payments flow to McDonald’s as franchise revenue and rental income, which have minimal direct costs associated (McDonald’s isn’t buying burger ingredients or paying crew wages for franchised stores). Consequently, McDonald’s retains about 82% of every dollar of revenue from franchised restaurants as gross profit, compared to only roughly 16% of each dollar from company-operated restaurants. This disparity is striking – it means franchised sales are far more profitable to the corporation. Even though corporate-owned stores generate higher revenue per unit, they come with food, labor, and occupancy costs that dramatically reduce margins. By relying on franchisees to handle on-the-ground operations, McDonald’s keeps its own expense base lean.

Real estate is the twin pillar of this franchise strategy. McDonald’s isn’t just a fast-food company – it is often said to be one of the world’s biggest real estate companies in disguise. A famous adage from Harry Sonneborn, McDonald’s first CFO, captures it: “We are not technically in the food business. We are in the real estate business. The only reason we sell hamburgers is because they are the greatest producer of revenue, from which our tenants (franchisees) can pay us rent.”. Indeed, McDonald’s owns a vast property portfolio. The corporation frequently owns or holds long-term leases on the land and buildings for its restaurant locations, then leases those properties to franchisees at a markup. As of today, McDonald’s owns about 45% of the land and about 70% of the buildings for its restaurants worldwide. (For the rest of the locations, McDonald’s secures lease contracts from third-party landlords and subleases to franchisees). This strategy of being effectively the landlord to its franchise operators yields enormous rental income. In 2022, for example, franchisees in aggregate paid McDonald’s roughly $7.5 billion in rent (in addition to royalty fees) – a steady revenue stream that is largely locked in via long-term contracts. During economic downturns, this rental income provides a cushion even if restaurant sales temporarily dip. It also means a substantial portion of McDonald’s earnings come from property, not just Big Macs. Real estate exposure does come with responsibilities: McDonald’s invests in maintenance, renovations, and in some cases purchases of new sites. But over decades, the company has built up equity in prime locations (many McDonald’s sit at high-traffic intersections and valuable commercial plots). The sheer scale of McDonald’s real estate footprint is astounding – in the U.S. alone, McDonald’s and its franchisees occupy an estimated 58 million square feet of real estate across about 17,000 locations. Globally, the company serves customers in over 41,000 restaurants as of 2023, with a presence in 100+ countries, making the Golden Arches one of the most ubiquitous retail footprints on Earth.

The financial implications of this franchise-and-property model are significant. First, it produces a highly predictable cash flow – franchisees typically pay royalty rates around 4–5% of sales and rent averaging 8–15% of sales, under agreements that often run for 20 years or more. This means McDonald’s corporate revenue is less volatile than restaurant sales; even if a franchisee’s sales slow, McDonald’s still collects rent (and the rent often has fixed minimums). Second, the model yields exceptional restaurant-level economics: McDonald’s reports that franchised outlets contribute about 85% of its combined restaurant margin dollars, versus 15% from the remaining company-operated stores. As an illustration from earlier years, in 2014 McDonald’s franchisees paid the company about $9.2 billion in fees/rent and the company kept $7.6 billion as profit from that – whereas company-run stores brought in $18.2 billion in revenue but only $2.9 billion in profit after expenses. That pattern – fewer dollars at risk, but a higher percentage dropping to the bottom line – has only tilted more in favor of franchising in recent years as McDonald’s increased its franchise mix. Cost structure at McDonald’s Corporation is therefore very different from a traditional restaurant: the cost of food, paper, and crew labor at franchised restaurants does not appear on McDonald’s income statement at all (those are borne by franchisees). Instead, McDonald’s cost of sales mainly consists of restaurant occupancy costs (for those properties it owns or leases) and the expenses of running the much smaller number of company-operated restaurants. As a result, McDonald’s can achieve operating margins in the 40%+ range, unheard of in most food service businesses. It also faces lower risk on the front lines – during the COVID-19 lockdowns, for example, McDonald’s corporate profits were protected relative to many peers because franchisees absorbed the worst of individual store financial strain. (McDonald’s did provide rent deferrals and some support to franchisees, but ultimately the franchise model distributed losses across thousands of independent operators, ensuring the corporation remained profitable.)

To be sure, this model relies on maintaining healthy relationships with franchisees and careful oversight. Franchisees are required to reinvest in restaurant remodels and new equipment (like modern digital menu boards and dual drive-thru lanes) and McDonald’s provides the roadmap and incentives for them to do so. The company’s corporate staff focuses on innovation, marketing, and monitoring quality standards, while franchise owners execute locally. McDonald’s periodically faces franchisee discontent or pushback – for instance, over required spending on store upgrades or new technology fees – but by and large the franchise system has been mutually beneficial. It allows entrepreneurs to profit from McDonald’s brand power, while the corporation grows with limited capital outlay. The franchising strategy has also enabled McDonald’s to exit or turn around underperforming markets by selling operations to licensees (e.g. refranchising its China business in 2017, or its Russia business in 2022). This flexibility is a strategic advantage.

In summary, McDonald’s has perfected a model in which it owns the brand, the land, and the intellectual property, while letting franchise partners handle day-to-day restaurant operations. This generates a virtuous cycle of steady, high-margin income. The downside is that McDonald’s corporate revenue doesn’t rise as quickly as systemwide sales – since only royalties and rent (a fraction of each restaurant’s sales) hit McDonald’s top line. But the trade-off of quality over quantity in revenue has clearly paid off in robust profits. The combination of a franchised structure with a real estate empire behind it makes McDonald’s uniquely sturdy among restaurant companies. It is often said that even if McDonald’s stopped selling food, it could survive just by collecting rent – an exaggeration, but one that speaks to how vital property is in the McDonald’s equation. As we will see next, this model also positions McDonald’s as a significant player in some unexpected corners of the economy, such as intellectual property licensing.

Intellectual Property Licensing and Franchise Fees

An often underappreciated aspect of McDonald’s business is its role as a purveyor of intellectual property (IP) and branding. Every Big Mac sold by a franchisee is not only a burger sale, but also essentially a licensed product – the franchisee is paying for the use of McDonald’s trademarks, recipes, and operating system. In fact, McDonald’s can be viewed as one of the largest IP licensors in the foodservice world. According to internal research estimates, McDonald’s accounts for roughly 3% of all revenue in the U.S. intellectual property licensing industry. This is an impressive share when one considers the company of McDonald’s in that space: the American IP licensing market includes giants like media and entertainment franchises (think Disney, which alone holds over 13% share of the IP licensing industry). McDonald’s ranking among the top licensors reflects the enormous scale of fees it earns from licensing its brand and know-how to franchisees. In 2025, McDonald’s franchise royalty revenue in the U.S. was on the order of $2.3 billion(which contributes to that ~3% industry share). By comparison, the largest licensor, Walt Disney Co., earned about $9–10 billion from licensing its characters and content (over 13% of the industry). McDonald’s thus sits alongside Hollywood studios in terms of monetizing IP – a remarkable fact for a burger chain.

What does this mean in practical terms? McDonald’s collects royalty fees (often around 4% of sales) and marketing fees (~4% of sales) from franchise restaurants as payment for the use of its intellectual property – its brand name, Golden Arches logo, recipes, and the entire restaurant system intellectual capital. These fees are essentially the “license cost” of operating a McDonald’s. In addition, McDonald’s owns countless trademarks (from the Big Mac to the McCafé coffee brand) and its franchise agreements tightly govern their use. The company also holds patents and trade secrets for food preparation processes and equipment, though the branding is the main value driver. Because of its franchising reach, McDonald’s generates over $2 billion annually in pure franchise fees (distinct from rent) – which is comparable to a licensing firm at scale. In the U.S., McDonald’s and a handful of other franchisors (like other fast-food chains and hotel brands) collectively make up a significant segment of the IP licensing industry.

McDonald’s prominence in licensing is further evidenced by industry data that put it among the top three companies by market share in U.S. intellectual property licensing, behind only Walt Disney and a major media conglomerate (WarnerMedia). Notably, McDonald’s IP licensing has high profit margins – the company’s profitability in this arena (e.g. royalty profit margin ~45%) outperforms the average for the licensing industry. This again ties back to the earlier point: royalties are an extremely high-margin stream for McDonald’s, since the costs to maintain the brand (advertising spend, some operational guidance) are relatively small compared to the fees incoming. It’s an illustration of how McDonald’s leverage of its brand translates into financial muscle beyond just selling food. Every Happy Meal sold yields a bit of royalty; every franchisee essentially signs on to be a long-term licensee of McDonald’s intellectual property.

It’s also interesting to consider McDonald’s position in the broader “accommodation and food services” sector of the economy through this lens. That sector, which includes all restaurants, bars, catering, hotels, etc., is enormous – estimated around $1.7–1.8 trillion in annual revenue in the U.S. (2025). Despite being one of the largest restaurant companies, McDonald’s slice of that pie is relatively modest, highlighting how fragmented food service is. Internal estimates from MMCG’s database indicate McDonald’s held roughly 0.6% of U.S. accommodation and food service industry revenues in 2025, or about $11 billion of the ~$1.8 trillion market. This suggests that McDonald’s U.S. operational revenue, while significant, is well under 1% of the total industry – the domestic market is highly fragmented, with countless independent restaurants and other chains making up the rest. (For context, Starbucks has a slightly larger U.S. revenue share at around 1.6%, and Darden Restaurants – owner of Olive Garden, etc. – about 0.7%.) In other words, no single company dominates U.S. food service; McDonald’s is a leader, but the industry’s scale means even the biggest players like McDonald’s and Starbucks each have only single-digit fractions of the whole. This fragmentation underscores why McDonald’s focuses so much on franchising and intellectual property: growth comes one store at a time, and leveraging IP (brand and know-how) across tens of thousands of stores is how McDonald’s maximizes its reach in a very dispersed market.

Beyond pure economics, McDonald’s position as an IP licensor has strategic ramifications. The company’s brand strength – valued among the most recognized brands in the world – is both a moat and a responsibility. McDonald’s carefully guards its trademarks and brand image; for instance, it has pursued legal action to defend the Big Mac name in international disputes. The franchise agreements give McDonald’s the power to enforce operational standards, protecting the brand’s consistency (a Big Mac tastes the same in Nebraska as in New Delhi, by design). This uniformity and trust in the brand are what enable McDonald’s to continually license it out and expand. At the same time, as an IP provider, McDonald’s must keep its brand relevant. This has led the company to invest in marketing campaigns that sometimes burnish the corporate brand (such as corporate social responsibility messaging or global campaigns like “I'm Lovin’ It”) beyond just promoting individual products. The value of the McDonald’s name is at the heart of those royalty streams.

In summary, McDonald’s is not only the archetype of a franchising company – it is effectively in the business of monetizing its intellectual property on a massive scale. The company’s financial success owes a great deal to this fact: royalties and fees (which are born from IP) comprised more than 60% of McDonald’s $25.5B revenue in 2023. That makes McDonald’s one of the largest licensing operations in any industry. By pairing IP licensing with real estate rental streams, McDonald’s has created a powerful one-two punch of predictable, asset-backed income. This model has set McDonald’s apart from rivals and will continue to shape its strategic opportunities and risks, as we discuss next.

Industry Position and Peer Benchmarking

McDonald’s occupies a unique and enviable position in the global restaurant industry. It is the largest fast-food company in the world by systemwide sales and one of the top two by market capitalization (often trading places with Starbucks for the title of most valuable restaurant company). Yet, as noted, in the context of the entire U.S. food service sector McDonald’s share is under 1%, reflecting a huge competitive landscape with many players. Let’s put McDonald’s in perspective against some major peers:

• Starbucks – the Seattle-based coffee giant is a key peer, as both companies compete for quick-service food dollars and have enormous global footprints. Interestingly, Starbucks’ revenue has surpassed McDonald’s in recent years: in fiscal 2023 Starbucks generated about $35 billion in revenue, significantly more than McDonald’s $25.5 billion. The difference is largely due to business models – Starbucks owns and operates a majority of its stores (especially in the U.S.), so its revenue includes the full sales of lattes and snacks, whereas McDonald’s, with its franchised model, only reports fees from most restaurants. However, when it comes to profits, McDonald’s still comes out on top. McDonald’s operating profit (over $11.6B in 2023) was roughly double Starbucks’, and McDonald’s net income was also higher. McDonald’s global systemwide sales (all franchise and company sales combined) of $129+ billion are about twice the estimated system sales of Starbucks. In terms of footprint, McDonald’s had about 44,000 restaurants in 2024, whereas Starbucks had around 37,000 stores (including licensed locations). Starbucks has more U.S. revenue than McDonald’s (as noted, ~$28B vs ~$11B in 2025 for McDonald’s U.S. segment), but McDonald’s leads in many international markets for fast food. Both companies are increasingly converging in some areas – McDonald’s has been pushing its McCafé beverages to capture more coffee market share, while Starbucks offers more food – yet their core offerings differ. From an investor lens, McDonald’s delivers higher margins and dividends, whereas Starbucks delivers higher top-line growth. McDonald’s also slightly edges Starbucks in market capitalization as of early 2026 (about $215 billion vs Starbucks’ ~$135 billion), reflecting the market’s appreciation of McDonald’s stable earnings.

• Yum! Brands – Yum is another global fast-food franchisor, owning the KFC, Pizza Hut, and Taco Bell brands. In terms of restaurant count, Yum’s system actually has more outlets (around 55,000 combined restaurants globally across its concepts) compared to McDonald’s 44,000. However, Yum’s footprint is split among three brands and heavily skewed to certain markets (for instance, KFC is huge in China and Taco Bell is U.S.-focused). Yum’s revenue is much smaller – about $6.5–7 billion annually – because like McDonald’s, Yum franchises the vast majority of its restaurants and therefore reports mainly royalty income. That means Yum’s revenue figure isn’t directly comparable to McDonald’s (McDonald’s reports more revenue largely because it also includes rent and still has some company-operated stores, whereas Yum is almost 100% franchised). One notable point is that Yum, like McDonald’s, enjoys high operating margins (routinely 30%+). When comparing McDonald’s to Yum, McDonald’s is larger on virtually every metric: higher system sales (McDonald’s $129B vs. Yum’s roughly $60–65B system sales), higher profits (McDonald’s $8–9B net income vs. Yum’s ~$1.3B net in 2023), and a larger market cap (~$215B vs. ~$40B for Yum). However, Yum demonstrates how other franchisors have followed in McDonald’s footsteps – focusing on an asset-light model and global expansion. Both companies are exposed to similar issues like health trends and franchisee relations. McDonald’s has a broader menu and more uniform global brand compared to Yum’s portfolio of brands. Also, McDonald’s average unit volumes (sales per restaurant) are generally higher than those of KFC, Pizza Hut, or Taco Bell, reflecting its strong brand pull and real estate quality.

• Darden Restaurants – Darden is a large U.S. full-service restaurant operator (owner of Olive Garden, LongHorn Steakhouse, etc.). It makes for an interesting contrast because Darden’s model is the opposite of McDonald’s: Darden owns and operates all its restaurants (no franchising of its main brands) and focuses on sit-down dining rather than quick-service. Darden’s annual revenue is around $10–12 billion, roughly on par with McDonald’s U.S. revenue. But Darden’s margins are far slimmer (operating margins in the mid-teens) and its restaurant count is about 1,900 – a tiny fraction of McDonald’s scale. McDonald’s single-handedly generates more profit than the entire full-service casual dining segment’s top players combined. This underscores the scale advantage and efficiency of McDonald’s franchised fast-food model. In downturns, consumers often “trade down” from full-service dining to quick-service, which can benefit McDonald’s at companies like Darden’s expense. We saw this in 2022 when inflation squeezed consumer wallets – McDonald’s traffic held up well, even reportedly gaining some customers who might otherwise have gone to casual dining, thanks to McDonald’s value positioning.

• Other peers worth noting: Burger King (owned by Restaurant Brands International) is perhaps McDonald’s closest burger competitor globally but is significantly smaller in U.S. market share and profits. Restaurant Brands (which also owns Tim Hortons and Popeyes) has about a $30B market cap – a fraction of McDonald’s – and Burger King’s brand presence, while global, hasn’t matched McDonald’s consistency. Wendy’s is a distant third in the burger segment in the U.S. By and large, McDonald’s outranks all direct burger rivals in sales, number of locations, and financial strength. In the broader quick-service category, Subway actually has a comparable or greater number of outlets (~37,000) but far less system sales (due to lower volume per store) and a fracturing franchise system. Domino’s Pizza has built a huge delivery-based empire and leads in its niche, but its revenue and market cap are an order of magnitude smaller than McDonald’s. Starbucks and McDonald’s thus stand as the twin giants of the out-of-home dining world, each dominating different segments (coffee vs. burgers) with some overlap.

From an industry benchmarking standpoint, McDonald’s excels in several dimensions:

• Scale of Operations: With tens of thousands of locations and a presence in nearly every major population center, McDonald’s has unparalleled reach. It serves ~68 million customers daily (about 1% of the world’s population each day), a statistic very few companies in any industry can match. This scale gives McDonald’s immense purchasing power with suppliers and a deep well of customer data to inform decisions.

• Brand Value: Interbrand consistently ranks McDonald’s among the top global brands. The Golden Arches are more recognized than the cross of the Church, as the saying goes. This brand strength translates into customer loyalty and the ability to weather controversies or slow news cycles better than lesser-known competitors.

• Efficiency and Innovation: Operationally, McDonald’s wrote the book on fast-food efficiency (the “Speedee Service System” pioneered by the McDonald brothers in the 1940s). Today, the company continues to innovate with kitchen processes, order fulfillment (like improving drive-thru speeds), and supply chain management. Its sheer volume makes McDonald’s one of the largest purchasers of beef, potatoes, and chicken in the world, allowing it to work closely on agricultural innovation and stable supply chains. Peers often study McDonald’s as the gold standard in supply chain efficiency and franchisee training.

• Financial Metrics: McDonald’s delivers higher return on equity and assets than most peers. Its asset-light approach yields hefty free cash flows (over $7 billion in free cash flow in 2023). Even on a per-store basis, McDonald’s is highly profitable: average EBITDA per McDonald’s restaurant (including franchisee profits) is estimated to be among the highest in fast food, thanks to high volumes. McDonald’s also boasts an investment-grade credit rating(S&P rates it BBB+, Moody’s Baa1, both with stable outlooks), reflecting confidence in its cash flow and moderate leverage. Many peers, by contrast, carry lower ratings (Yum is similarly rated BBB, while purely franchised smaller chains can dip into junk status due to higher debt loads). McDonald’s strong credit standing allows it to raise capital at attractive rates – it issued $6 billion in bonds in 2020, for instance, to fund shareholder returns, taking advantage of low interest costs.

• Competitive Positioning: While quick-service dining is intensely competitive, McDonald’s has shown an ability to defend and even grow its market share through constant adaptation. It leads in the burger segment by a wide margin. However, competition isn’t static – McDonald’s faces evolving rivals from fast-casual upstarts (e.g., Shake Shack or Chipotle in certain menu areas) to global contenders (like Starbucks in breakfast or local chains in emerging markets). McDonald’s has generally managed to stay ahead via its scale, but it keeps a close eye on industry trends (for example, the rise of chicken sandwich wars in the late 2010s prompted McDonald’s to invest more in its Chicken McCrispy line to fend off Chick-fil-A and Popeyes). Its benchmarking against peers is as much about taste and marketing as financials – an area McDonald’s continues to invest heavily in.

In short, McDonald’s stands at or near the top of its industry by most measures, especially when considering profitability and global presence. It has a different profile from a typical restaurant company – more akin to a branded platform that extracts royalties – which consistently gives it a financial edge. The company’s scale and heft allow it to set industry standards (from food safety to employment practices to tech investments). Yet McDonald’s cannot become complacent; to maintain its position, it must navigate the macroeconomic currents and strategic shifts discussed next.

Macroeconomic and Operational Challenges

Like all businesses, McDonald’s is influenced by the broader macroeconomic environment. In recent years, a number of external factors have presented challenges (and some opportunities) for McDonald’s operations and financial results:

• Labor Shortages and Wage Inflation: The restaurant industry has been grappling with a tight labor market. Coming out of the pandemic, many restaurants (McDonald’s included) experienced difficulties in fully staffing their stores. Unemployment hit historic lows in 2022–2023 in the U.S. and parts of Europe, and the service sector in particular faced worker shortages as employees sought higher-paying or less demanding jobs. This forced McDonald’s franchisees to compete by raising wages and offering perks. According to the National Restaurant Association, restaurant labor costs in the U.S. jumped about 31% from 2020 to 2024. McDonald’s franchisees have increased starting pay in many markets (for example, many U.S. McDonald’s now offer well above minimum wage, plus signing bonuses in some cases). Additionally, new minimum wage laws have impacted McDonald’s. Notably, in California – one of McDonald’s largest markets – legislation in 2024 set a $20/hour minimum wage for fast-food workers, directly raising labor costs for franchisees in that state. Nationwide in the U.S., 21 states and dozens of cities hiked minimum wages on January 1, 2025 alone. Higher labor costs put pressure on restaurant profit margins and can lead franchisees to raise menu prices or automate certain tasks. McDonald’s has responded by accelerating automation trials (such as testing automated drive-thru ordering using AI, and experimenting with kitchen robotics in pilot locations). However, there’s a limit to how much frontline labor can be reduced without hurting customer service. Labor shortages also led some McDonald’s restaurants to shorten operating hours in 2021–2022 (e.g. fewer 24-hour locations) because they couldn’t staff overnight shifts. For a company long known for speedy service, ensuring adequate staffing while controlling wage costs is a delicate balance. From a corporate perspective, McDonald’s itself directly employs about 150,000 people (mostly in company-owned stores and corporate roles), but the extended McDonald’s “system” employs over 2 million including franchise restaurant crew. That makes McDonald’s one of the largest employers in the world, and broader labor trends – from unionization movements to workforce availability – are a significant concern. (Notably, there have been efforts to unionize fast-food workers and campaigns like the “Fight for $15” minimum wage push, which indirectly pressured McDonald’s to endorse higher wages).

• Commodity and Food Price Inflation: Restaurants are sensitive to the price of ingredients, and McDonald’s is no exception. The period of 2021–2022 saw sharp inflation in food commodities – beef, chicken, grains, dairy – partly due to supply chain disruptions and rebounding demand. For instance, the price of beef (for burger patties) reached record highs in 2022. McDonald’s franchisees had to absorb some of these cost increases and also pass through price hikes to consumers. Food commodity costs were reported to have risen around 20–30% from pre-pandemic levels by 2022 for many staples. An example: an egg shortage in 2023 (due to avian flu impacts on poultry flocks) caused egg prices to spike, but McDonald’s famously announced it would not impose surcharges on egg-based menu items, instead running promotions on Egg McMuffins to retain customer goodwill. Such decisions trade short-term margin for long-term loyalty. Overall, McDonald’s has some insulation against volatility because of its scale – it often locks in prices via futures contracts or long-term supplier agreements. Additionally, its menu flexibility (promoting cheaper ingredients when others are costly) helps manage food costs. Still, in 2022 McDonald’s food and paper costs (for company-operated restaurants) jumped considerably, and franchisees saw their food bills go up, squeezing their profits until menu prices were adjusted. By late 2023, commodity inflation had cooled, but the lesson remains: swings in commodity prices directly affect franchisee profitability and can influence McDonald’s menu pricing strategy. The company is also exploring ways to mitigate this, such as sourcing alternatives or optimizing portion sizes quietly (shrinkflation) if needed.

• Global Supply Chain and Tariffs: Being a global company, McDonald’s supply chain is subject to international trade issues. Recent years have featured trade tensions and tariffs – for example, U.S. tariffs on imported steel and aluminum increased the cost of kitchen equipment and construction for new restaurants. Tariffs on European goods and Chinese imports raised prices of certain food products, packaging materials, and equipment for the restaurant industry. An internal analysis noted that new U.S. tariffs on imports broadly squeezed restaurant margins, forcing price hikes in some cases. McDonald’s, with its huge volume, could partly shift sourcing to domestic suppliers to dodge some tariffs, but not all impacts can be avoided (for instance, a tariff on imported tomatoes would affect ketchup costs, etc.). Beyond tariffs, events like Brexit introduced trade complexities in Europe, and the war in Ukraine in 2022 disrupted agricultural exports, contributing to higher cooking oil and grain prices globally. McDonald’s has a large and well-diversified supplier network (often localizing supply chains for each country), which gives it resilience, but also means it is exposed to many localized issues. A drought in potato-growing regions can cause french fry supply scares (as happened in 2019 in some countries); a pandemic wave can shut down meat processing plants temporarily (as seen in 2020). The company manages these via contingency planning – e.g., shifting sourcing between suppliers or even between countries when needed. The scale of McDonald’s orders often puts it at the front of the line for supply, but it must sometimes pay a premium to secure ingredients in tight markets. Overall, supply chain robustness is a competitive advantage for McDonald’s, though rising input costs (from tariffs or other factors) inevitably flow through to either lower margins or higher menu prices.

• Regulatory Environment: McDonald’s operates under a mosaic of regulations across the world, and changes can significantly impact operations. We discussed labor regulations (minimum wage laws). Another area is food safety and health regulations. Governments are increasingly active in regulating nutrition – e.g., mandating calorie counts on menus (as in the U.S.), restricting trans fats (McDonald’s phased those out years ago), and even considering taxes on high-fat or high-sugar foods (several countries have soda taxes, which affect McDonald’s beverage sales). McDonald’s must continually adapt recipes and disclosures to comply with these rules. In some markets, there’s pressure to reduce portion sizes or marketing to children (such as banning toys in kids’ meals, which has been proposed in places for health reasons). Environmental regulations are another front: the European Union, for instance, has introduced rules to limit single-use plastics. McDonald’s Europe had to eliminate plastic straws and shift to paper packaging, and in France new laws require reusable dishware for dine-in customers at fast-food restaurants as of 2023 – a significant operational change for McDonald’s French franchisees who now must install dishwashing capacity and manage inventory of reusable trays, cups, etc. These regulations, aimed at sustainability, incur upfront costs but also align with McDonald’s own ESG goals (discussed later). On the tax front, changes in corporate tax rates or international tax agreements can influence McDonald’s net income (it benefits from various tax structures via its foreign subsidiaries licensing fees back to the U.S. parent, a common practice that could be affected by evolving global tax rules). Lastly, McDonald’s occasionally faces legal and compliance issues – e.g., inquiries into franchise practices, or antitrust concerns if, say, it’s deemed to have too much market power in some local market. While nothing on the antitrust front poses a serious threat (the fast-food industry is highly competitive), regulatory scrutiny is part of doing business at McDonald’s scale.

Despite these challenges, McDonald’s has shown an ability to adapt and even thrive amid macro pressures. During high inflation, it leaned on its value proposition to keep customer traffic, even as menu prices rose roughly 10% in the U.S. over 2022-2023. During labor shortages, it invested in automation and also worked to make restaurant jobs more attractive (career development programs, educational benefits, etc., which the company highlights as part of its social commitment). When commodity costs surged, McDonald’s simplified some menus to streamline purchasing and ensure efficiency (for example, temporarily limited specialty offerings to focus on core items). One advantage is that McDonald’s size allows it to absorb short-term shocks better than smaller competitors. Franchisees have an association and communication channel with corporate to voice concerns, and McDonald’s has provided financial support in extraordinary times (for instance, rent deferrals in 2020 for franchisees hit by COVID lockdowns).

From a macro standpoint, McDonald’s tends to be relatively recession-resistant. The fast-food segment often sees customers trade down to cheaper options when the economy is weak. McDonald’s experienced this in 2008-2009 (the company famously grew sales through the Great Recession, as consumers flocked to the Dollar Menu). The pandemic was a unique downturn where dining out was curtailed, but even then McDonald’s proved agile with drive-thru and delivery, recovering faster than many sit-down restaurants. As of early 2026, economists watching a potential economic slowdown would likely still consider McDonald’s a defensive play in the consumer sector – people will seek affordable comfort food even in tough times. The company’s challenge is more about adapting to structural changes (like technology and consumer preferences) than about cyclical demand, which has historically been steady for fast food. Nonetheless, inflation and labor costs in the 2020s have certainly tested how far McDonald’s can push efficiency. Thus, the company’s strategic focus has increasingly turned to innovation and long-term opportunities, which we examine in the final section.

Strategic Opportunities and Outlook (Digital, Delivery, ESG, and Beyond)

McDonald’s faces the future with a mix of significant opportunities and notable strategic risks. As a mature company in a dynamic industry, it is actively working on initiatives to drive growth and stay ahead of consumer trends. Here are some of the key areas of focus:

Digital Transformation and Delivery: McDonald’s is doubling down on what it calls the “4 D’s” – Digital, Delivery, Drive Thru, and Development. These are central to its growth strategy. On the digital front, McDonald’s has rapidly built one of the largest digital ecosystems in food retail. Its mobile app, which now has over 40 million active users in the U.S. and many more globally, enables order-ahead, loyalty rewards, and personalized promotions. Digital sales (from app, kiosk, and third-party aggregators) now account for a significant portion of McDonald’s system sales – in its top six markets, digital was about $20+ billion of sales in 2022, and the company is targeting $45 billion by 2027 from loyalty members alone. This presents a huge opportunity: digital orders tend to be larger (people add more to their cart) and allow for direct marketing. McDonald’s is leveraging data from its app to tailor deals to individual customer preferences and meal times. The delivery boom is another tailwind. McDonald’s was somewhat late to delivery, but by 2023 it offered delivery in over 35,000 restaurants across 100 countries, often via partnerships with Uber Eats, DoorDash, and others. Delivery has opened up a new revenue channel, especially in urban areas and during late-night hours. It does come with higher costs (fees to delivery providers, packaging needs), but consumers have shown they’re willing to pay a premium for McDonald’s delivered to their door. The challenge for McDonald’s is to integrate delivery more profitably – hence initiatives like adding delivery ordering to the in-house app (bypassing aggregator fees to some extent) and improving packaging for travel. Drive-thru remains a strength – about 70% of U.S. sales pre-pandemic were via drive-thru, and McDonald’s invested in drive-thru tech like digital menu boards and express lanes. It even acquired a tech startup in 2019 (Dynamic Yield) to do drive-thru menu personalization, demonstrating how serious it is about this core convenience channel. The next step might be automated order taking (AI voice systems) and further speed improvements. McDonald’s knows that speed and convenience are its competitive advantages; the company continues to test concepts like curbside pickup and even a new small-format restaurant design in Texas that is optimized solely for drive-thru and delivery orders (with no dining room). This kind of format innovation could be an avenue for expanding in dense urban or new market areas.

Menu Evolution and Product Innovation: While McDonald’s core menu is famously stable (the Big Mac, Fries, and Chicken McNuggets are perennial billion-dollar sellers), the company constantly tinkers with menu innovation to drive interest and meet changing tastes. A current opportunity is in the chicken category – chicken sandwiches and tenders are a fast-growing segment, and McDonald’s has been rolling out the McCrispy chicken sandwich globally, aiming to capture share from competitors like Chick-fil-A and Popeyes. The company sees chicken as “the next burger” in terms of growth. It also has introduced items like spicy nuggets, premium chicken sandwiches, and even tested plant-based meat alternatives. In partnership with Beyond Meat, McDonald’s experimented with a “McPlant” burger in select markets. While the initial U.S. tests saw lukewarm demand, McDonald’s is selling plant-based burgers in some places like the UK (the McPlant is now a permanent item there). As flexitarian and vegan trends grow, McDonald’s will likely refine and reintroduce plant-based options – it’s a strategic space to watch, though not yet a huge sales driver. Another area is customization and regional flavors. McDonald’s has increasingly embraced local specialties (such as a Chicken Maharaja Mac in India, or macaroons at French McCafés) which can become hits and even be exported to other markets. The company’s global scale means a successful idea in one country (say, the McSpicy fried chicken sandwich in Asia) can be quickly scaled elsewhere. Conversely, McDonald’s has leveraged its global cachet to do limited-time offers featuring international menu items in the U.S. (the “Worldwide Favorites” LTO brought Spain’s bacon cheddar fries and Canada’s maple BBQ burger to American menus briefly). These rotations keep the menu fresh. Healthier options have long been a challenge – salads were actually pulled from U.S. menus during the pandemic and haven’t returned, as demand was low. Instead, McDonald’s is focusing on making its existing items a bit healthier (e.g., reducing sodium, using fresh beef in Quarter Pounders instead of frozen, removing artificial preservatives). The balance McDonald’s strikes is in offering indulgence (its classic appeal) versus adapting to more health-conscious consumers. So far, indulgence and value seem to win; McDonald’s tried more overt health foods like kale bowls in certain markets and found little success, so its strategy has been to improve nutrition subtly without alienating the customer base that comes for comfort food. Breakfast remains a strong daypart (though not as dominant as a decade ago, due to competition from places like Starbucks and Dunkin’). McDonald’s made a splash by offering all-day breakfast in 2015, but actually pulled back during COVID (most locations now serve breakfast only in the morning again to simplify operations). There is an opportunity to re-energize breakfast – perhaps through new coffee options or partnership products (like the test of Krispy Kreme doughnuts being sold at some McDonald’s stores). Collaborations (e.g., the Krispy Kreme test, or celebrity endorsements like Travis Scott and BTS meals) have proven wildly successful in generating buzz and traffic, a strategy McDonald’s will likely continue. The overarching goal is to stay culturally relevant and “on trend” while preserving the classic items that define the brand.

ESG and Sustainability: Environmental, Social, and Governance (ESG) factors are increasingly important in the foodservice industry, and McDonald’s has been both scrutinized and lauded in this domain. On the environmental side, McDonald’s has set targets to reduce greenhouse gas emissions (aiming for a 36% reduction in restaurant and office emissions by 2030, and a 31% reduction in supply chain emissions, from a 2015 baseline). It’s also pledged to achieve net zero emissions by 2050. A huge contributor to its carbon footprint is its supply chain – notably beef production. McDonald’s is one of the largest beef purchasers globally, so it has initiatives for sustainable agriculture, such as supporting regenerative farming practices for beef and soy, and ending deforestation in its sourcing of beef, soy, coffee, and palm oil by 2030. These efforts are crucial not just for ethics but to ensure long-term supply stability. The company has made strides in packaging as well: as of 2021, 99% of McDonald’s guest packaging comes from renewable, recycled, or certified sources, and it’s working toward fully recyclable or compostable packaging in all restaurants. In Europe, as mentioned, McDonald’s has shifted to reusable dining ware for in-restaurant consumption to comply with new laws – an example of turning a regulation into a sustainability win. Another ESG focus is waste reduction; McDonald’s is piloting composting and recycling programs in various cities, acknowledging the immense volume of single-use cups and wrappers its business generates.

On the social front, McDonald’s labor practices and community impact are focal points. The company has publicized efforts to improve diversity and inclusion in its workforce and franchisee base. It has set goals to increase representation of women and minorities in leadership. Following some high-profile cases of harassment and racial discrimination lawsuits in the late 2010s, McDonald’s implemented new policies and training around workplace conduct, both at corporate and encouraging franchisees to follow suit. McDonald’s is also heavily involved in philanthropy through Ronald McDonald House Charities, providing housing and support for families with hospitalized children – an area where it garners goodwill and engages employees and franchisees in fundraising. Another social issue is nutrition and public health: McDonald’s has taken steps like offering apple slices and milk in Happy Meals by default to make kids’ meals healthier and to counter criticisms of contributing to childhood obesity. The company also committed to marketing healthier options to kids and not advertising soda in kids’ meal promotions. While skeptics may doubt how far such efforts go, they show McDonald’s responsiveness to public pressure.

For governance, McDonald’s has had some turbulence (the 2019 ousting of CEO Steve Easterbrook over a policy violation was a notable incident), but overall it’s considered to have solid governance practices and shareholder-friendly policies (steady dividends and share buybacks). In terms of risk management, McDonald’s includes ESG risks like climate and social reputation in its assessments now. For example, animal welfare is a rising concern – McDonald’s has committed to sourcing cage-free eggs (100% in many markets) and phasing out antibiotics in its meat supply. These moves are both ethically driven and preempt regulatory changes.

In essence, ESG trends present both a risk and an opportunity for McDonald’s. On one hand, failure to meet society’s evolving expectations could hurt the brand – e.g., being seen as environmentally unfriendly or exploitative of labor. On the other hand, McDonald’s size means it can be a leader in positive change. If it innovates in sustainable packaging or cuts emissions, it often forces the rest of the industry to follow. McDonald’s could benefit from cost savings in energy usage (many new restaurants have solar panels, LED lighting, etc.) and from improved public perception by hitting its ESG goals. Investors, too, are increasingly viewing McDonald’s through an ESG lens; the company has been included in sustainability indexes and is frequently asked about these topics on earnings calls now.

Looking Ahead – Opportunities vs. Risks: McDonald’s short-term outlook (as of 2026) remains strong – it continues to grow sales and is relatively insulated from economic swings. International expansion is still a big opportunity: markets like India, Southeast Asia, and Africa are underpenetrated for McDonald’s and offer long-term growth potential as incomes rise and Western-style fast food gains popularity. McDonald’s and its developmental licensees are likely to accelerate new unit openings in such regions (for instance, McDonald’s has been expanding aggressively in China and plans to open thousands of stores there in coming years via its local partners). Another opportunity is menu pricing power – McDonald’s has demonstrated that, due to its brand strength, it can raise prices without losing much traffic, provided it continues to deliver on convenience and consistency. This can help offset inflation and protect margins.

On the risk side, competition is a constant. Consumer tastes can be fickle; a new generation of diners might prefer healthier, local, or more upscale fast-casual experiences. McDonald’s must ensure it stays relevant – hence its ventures into digital engagement and trendy collaborations. There is also the risk of brand fatigue: McDonald’s has been ubiquitous for decades, and periodically it faces a cultural moment of backlash (be it for health concerns or labor issues). Managing brand goodwill is key – and that’s one reason McDonald’s invests heavily in marketing that connects emotionally (like nostalgic campaigns, sponsorships, and community programs).

Another risk is the franchisee relationship: franchisees are McDonald’s backbone, and if a significant number become unhappy (for example, over cost burdens or disagreements on strategy), it can hinder growth. In 2022–2023, there were reports of franchisee discontent over new grading systems McDonald’s put in place to assess restaurant quality, and over rising costs. McDonald’s will need to continuously balance pushing franchisees for improvements with keeping the business attractive for entrepreneurs (franchisee profitability needs to stay healthy, which currently it generally is – average U.S. franchisee restaurant cash flows have been strong in recent years, in part due to the sales boost from higher prices).

In conclusion, McDonald’s enters the mid-2020s as a financially robust, operationally sophisticated giant that is actively transforming itself for the future. It has proven adept at navigating economic ups and downs, leveraging its scale to mitigate challenges like inflation and labor costs. The company’s emphasis on digital and delivery positions it well for consumers’ evolving expectations of convenience. Its franchise and real estate model continues to be a source of competitive advantage and stability. McDonald’s is not without challenges – from intense competition to societal pressures – but its track record suggests a capacity to adapt. In many ways, McDonald’s now functions not just as a restaurant chain but as a platform – a platform for food retail, for franchise entrepreneurship, and for supply chain influence. This platform approach, underpinned by the golden arches known in virtually every corner of the globe, should allow McDonald’s to keep generating solid growth and remain a bellwether in the industry.

As the company looks toward its next chapter, financial professionals will be watching how effectively McDonald’s converts these strategic initiatives into sustained earnings momentum. If the past is any guide, the Golden Arches will continue to find a way to shine – through economic storms and changing consumer appetites – maintaining its role as a dominant force in global food service.

January 24, 2026, by a collective of authors at MMCG Invest, LLC, feasibility study consultants

Sources:

McDonald’s corporate disclosures and filings

• McDonald’s Corporation — 2023 Annual Report (Form 10‑K; PDF via McDonald’s IR) (revenue, operating income/margin, systemwide sales, strategy narrative, segment discussion).

• SEC EDGAR — McDonald’s Form 10‑K for FY ended 12/31/2023 (HTML) (restaurant count, franchised % disclosure, segment structure, risk factors).

• McDonald’s — FY 2023 results press release / newsroom posting (income statement line items incl. company-operated vs franchised revenues).

• McDonald’s — 2024 Annual Report to Shareholders (PDF) (management letter, operating model narrative, forward-looking priorities).

• McDonald’s — Investor Overview Deck (PDF; includes strategy + financial posture + ratings disclosure).

Footprint, customers served, ESG / purpose metrics

• McDonald’s Purpose & Impact Progress Report 2024–2025 (PDF) (system scale descriptors such as customers served and restaurant footprint).

Credit quality / ratings

• S&P Global Ratings — regulatory note rating action (BBB+ example) (rating action language and context).

• S&P Global Ratings — Global Corporate Credit Ratings list (issuer rating line item).

• McDonald’s Investor Overview Deck (discloses S&P BBB+ and Moody’s Baa1 in one place).

• Moody’s rating coverage (third-party repost / summary; Moody’s direct page is login-gated).

Industry macro context (cost inflation, labor pressures)

• National Restaurant Association — State of the Restaurant Industry 2025 (PDF) (macro cost pressures; sector conditions).

• Restaurant Business Online — analysis citing National Restaurant Association data (labor costs +31% between 2020–2024) (supports labor-cost escalation framing).

Peer benchmarking sources (for competitor financial comparisons)

• Starbucks — Fiscal 2023 Annual Report (PDF) (revenue, operating income, operating margin).

• Yum! Brands — 2023 Annual Report (interactive) (system sales scale, unit development commentary).

• Darden Restaurants — FY2024 full-year results release (revenue and operating income context for casual dining comparisons).

Business model explainers (franchise + real estate economics)

• SEC EDGAR — historical McDonald’s 10‑K language on owned land/buildings (real-estate ownership disclosure appears explicitly in prior filings).

• Investopedia — overview explainer on McDonald’s franchising + real estate economics (secondary source; useful for narrative framing).