MCDONALDS CORP (MCD)

McDonald's Corporation franchises and owns and operates McDonald's restaurants, which serve a locally relevant menu of food and beverages in communities across more than 100 countries. Of the 45,356 restaurants at year-end 2025, approximately 95% were franchised. The Company describes itself as primarily a franchisor, and it also operates restaurants directly, which it says supports its credibility as a franchisor and provides a venue for training, testing innovations and refining operating standards, marketing concepts and pricing strategies. In 2025, consolidated revenues were $26.9 billion, Systemwide sales were $139.4 billion and operating income was $12.4 billion.

The Company's reportable segments are the U.S. and International Operated Markets, plus the International Developmental Licensed Markets & Corporate segment, which covers over 75 countries and corporate activities. Revenues come from sales by Company-owned and operated restaurants and from fees from conventional franchisees, developmental licensees and affiliates, under agreements that generally run 20 years. Under a conventional franchise, the Company generally owns or leases the land and building, and the franchisee pays for equipment, signs, seating and décor and pays rent and royalties based on a percent of sales, plus initial fees. Under developmental license and affiliate arrangements, the licensee provides the capital, including real estate, and the Company receives a royalty based on a percent of sales and generally initial fees. Affiliate arrangements are used mainly in China and Japan. Other revenues include technology and digital platform fees paid by franchisees and brand licensing revenues from consumer packaged goods. The menu includes hamburgers and cheeseburgers, the Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, chicken sandwiches, Chicken McNuggets, fries, shakes, McFlurry desserts, soft drinks, coffee and McCafé beverages, along with breakfast items in many markets.

McDonald's serves consumers worldwide through its restaurants, with menus that are substantially uniform but vary by region to suit local tastes. Its franchisees are independent operators, and the Company generally does not work with passive investors. Over two million people work in franchised restaurants, and the Company had over 150,000 employees at year-end 2025, about 70% of them outside the U.S. The Company measures its competitive position within the informal eating out segment, which includes quick-service restaurants, home delivery and takeaway providers, convenience stores, cafés and coffee shops. It competes mainly on price, convenience, service, experience, menu variety and product quality.

The Company and its franchisees buy food, packaging, equipment and other goods from numerous independent suppliers. These suppliers are subject to food safety and quality standards, third-party audits and a Supplier Code of Conduct. The "McDonald's" trademark and the Golden Arches Logo are considered of material importance. The Company is subject to U.S. and foreign laws covering advertising, franchising, health, safety, environment, competition, zoning, employment and taxation. Its growth strategy is called Accelerating the Arches.