Does McDonald's own its restaurants?

Mostly not. Of its 45,356 restaurants at the end of 2025, it ran 2,039 itself. Franchisees ran 22,570, licensees in far-off markets ran 9,675, and partly owned partners, mostly in China and Japan, ran 11,072.

Is McDonald's really a real estate company?

Rent from franchisees was its biggest single source of revenue in 2025: $10.4B, more than the $9.7B its own restaurants sold. But it's rent tied to a restaurant brand: it rises with the franchisees' sales, and royalties of $6B came on top.

How much money do you need to buy a McDonald's franchise?

To buy an existing restaurant, McDonald's USA typically requires at least $750,000 of a candidate's own, unborrowed money and recommends $100,000 of working capital for each restaurant, after training that takes 6–12 months. A brand-new restaurant takes more.

How much profit does McDonald's make?

McDonald's made $12.4B in operating income in 2025, about 46.1% of its revenue, far above Starbucks' 7.9%, because most of its money is rent and royalties. Its net income was $8.6B.

How many people work for McDonald's?

McDonald's itself employs over 150,000 people, in its own restaurants and offices. The crews in franchised restaurants work for the franchisees.

How companies make money

How McDonald's makes money

From McDonald's 2025 annual report · Every number cited · Updated October 2026

The short answer

McDonald's makes most of its money as a landlord and a brand, not by selling burgers itself. About 95% of its restaurants are run by franchisees, and in 2025 they paid McDonald's $10.4B in rent and $6B in royalties: well over half of its $26.9Bsec.gov ·2025 in revenue.

It keeps most of that money, because the franchisees pay for the food, the crew and everything inside the restaurant.

95%sec.gov ·2025
Restaurants run by franchisees
$16.5Bsec.gov ·2025
Rent, royalties and fees from franchisees
12.8%sec.gov ·2025
Of every dollar spent at a franchised McDonald's that reaches McDonald's
46.1%sec.gov ·2025
Operating margin: kept as operating profit

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A slice of other people's sales

Customers spent $129.7Bsec.gov ·2025 in 2025 at McDonald's restaurants run by franchisees. That money isn't McDonald's revenue: it's the franchisees' sales. What McDonald's takes is a slice, $16.5B in rent, royalties and fees, about 12.8%sec.gov ·2025 of every dollar. In the US the slice was about 14.2%sec.gov ·2025.

The rest pays for the franchisee's food, crew and running costs, and whatever's left is the franchisee's own profit. So McDonald's does best when its franchisees sell more.

McDonald's also runs some restaurants itself, and there it sells the meals and pays for everything: $9.7Bsec.gov ·2025 of sales in 2025.

Rent from franchisees: $10.4B

Royalties from franchisees: $6B

Sales at its own restaurants: $9.7B

Other, like technology fees: $647M

Where McDonald's $26.9Bsec.gov ·2025 of revenue came from in 2025, from its Form 10‑K. Fees for new restaurants were a small extra.

Sources:sec.gov ·2025

Why it keeps the land

In a classic McDonald's franchise, McDonald's provides the land and the building, and the franchisee pays to fit it out and run it. In its main markets McDonald's owns about 56% of the land and 80%sec.gov ·2025 of the buildings under its restaurants. The property it rents to franchisees was worth $22.8B on its books at the end of 2025, $7.1Bsec.gov ·2025 of it land.

Rent is a set minimum plus a share of sales, so it rises when sales do. Under deals already signed, franchisees owe at least $31.5Bsec.gov ·2025 of minimum rent in the years ahead. A deal usually runs 20 yearssec.gov ·2025, and when it ends, McDonald's still owns or leases the site.

Landlord or restaurant?

From a franchised restaurant, McDonald's collects less money but keeps most of it. From a restaurant it runs itself, it collects every dollar but pays for the food, the crew and the building. Franchised restaurants made about 90%sec.gov ·2025 of McDonald's restaurant margin dollars in 2025.

So why run any at all? McDonald's runs about 4.5%sec.gov ·2025 of its restaurants itself. Its report says they're where it trains people and tests new ideas and prices, and that running some is part of being a credible franchisor.

In the US
In the US · franchised restaurants: 82.5%
In the US · runs itself: 11.6%

Worldwide
Worldwide · franchised restaurants: 84.2%
Worldwide · runs itself: 14.7%

Share of each dollar McDonald's keeps from its restaurants before the head office, interest and taxes, worked out from its Form 10‑K for 2025.

Sources:sec.gov ·2025

Common questions

Does McDonald's own its restaurants?: Mostly not. Of its 45,356 restaurants at the end of 2025, it ran 2,039sec.gov ·2025 itself. Franchisees ran 22,570, licensees in far-off markets ran 9,675, and partly owned partners, mostly in China and Japan, ran 11,072sec.gov ·2025.
Is McDonald's really a real estate company?: Rent from franchisees was its biggest single source of revenue in 2025: $10.4B, more than the $9.7Bsec.gov ·2025 its own restaurants sold. But it's rent tied to a restaurant brand: it rises with the franchisees' sales, and royalties of $6Bsec.gov ·2025 came on top.
How much money do you need to buy a McDonald's franchise?: To buy an existing restaurant, McDonald's USA typically requires at least $750,000 of a candidate's own, unborrowed money and recommends $100,000mcdonalds.com ·2026 of working capital for each restaurant, after training that takes 6–12 monthsmcdonalds.com ·2026. A brand-new restaurant takes more.
How much profit does McDonald's make?: McDonald's made $12.4B in operating income in 2025, about 46.1%sec.gov ·2025 of its revenue, far above Starbucks' 7.9%sec.gov ·2025, because most of its money is rent and royalties. Its net income was $8.6Bsec.gov ·2025.
How many people work for McDonald's?: McDonald's itself employs over 150,000 peoplesec.gov ·2025, in its own restaurants and offices. The crews in franchised restaurants work for the franchisees.

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