How McDonald's makes money

Sources

• McDonald's Corporation annual report (Form 10-K), fiscal 2025 · McDonald's Corporation, filed with the U.S. Securities and Exchange Commission, 2025
• The journey to becoming a Franchisee · McDonald's USA, LLC, 2026
• The cost of franchise ownership · McDonald's USA, LLC, 2026

Every number

• $16.5Bsec.gov ·2025 · Revenues from franchised restaurants, 2025: rent, royalties and initial fees.
• $9.7Bsec.gov ·2025 · Sales by company-owned and operated restaurants, 2025.
• $647Msec.gov ·2025 · Other revenues, 2025: technology fees from franchisees and brand licensing.
• $26.9Bsec.gov ·2025 · Total revenues, 2025.
• $2.6Bsec.gov ·2025 · Franchised restaurants-occupancy expenses, 2025: McDonald's own lease costs and building depreciation as the landlord.
• $8.3Bsec.gov ·2025 · Company-owned and operated restaurant expenses, 2025: food and paper, payroll and benefits, occupancy and other.
• $564Msec.gov ·2025 · Other restaurant expenses, 2025.
• $3Bsec.gov ·2025 · Worked out: selling, general and administrative expenses, 2025, its two lines added (depreciation and amortization plus other).
• $2Msec.gov ·2025 · Other operating (income) expense, net, 2025.
• $12.4Bsec.gov ·2025 · Operating income, 2025.
• $1.6Bsec.gov ·2025 · Interest expense, net of capitalized interest, 2025.
• $87Msec.gov ·2025 · Nonoperating income, net, 2025.
• $2.3Bsec.gov ·2025 · Provision for income taxes, 2025.
• $8.6Bsec.gov ·2025 · Net income, 2025. The report rounds each line to the nearest million, so the lines above it can add up to a million dollars more or less.
• $129.7Bsec.gov ·2025 · Franchised sales worldwide, 2025: sales at restaurants run by franchisees, which aren't McDonald's revenue.
• $51.95Bsec.gov ·2025 · Franchised sales in the U.S., 2025.
• $7.37Bsec.gov ·2025 · Revenues from franchised restaurants in the U.S., 2025: rent, royalties and initial fees.
• 12.8%sec.gov ·2025 · Worked out from the 10-K: revenues from franchised restaurants (rent plus royalties plus fees) ÷ franchised sales, worldwide, 2025.
• 14.2%sec.gov ·2025 · Worked out from the 10-K: U.S. revenues from franchised restaurants (rent plus royalties plus fees) ÷ U.S. franchised sales, 2025.
• 45,356sec.gov ·2025 · McDonald's restaurants worldwide at the end of 2025.
• 22,570sec.gov ·2025 · Restaurants run by conventional franchisees at the end of 2025.
• 9,675sec.gov ·2025 · Restaurants run by developmental licensees at the end of 2025.
• 11,072sec.gov ·2025 · Restaurants run by foreign affiliates at the end of 2025.
• 2,039sec.gov ·2025 · Restaurants McDonald's owns and runs itself at the end of 2025.
• $3.7B–$3.9Bsec.gov ·2025 · Capital expenditures McDonald's expected for 2026, as given in its 2025 report.
• 6–12 monthsmcdonalds.com ·2026 · Length of McDonald's US franchisee training program.
• $10.4Bsec.gov ·2025 · Rent from franchised restaurants, 2025.
• $6Bsec.gov ·2025 · Royalties from franchised restaurants, 2025.
• $88Msec.gov ·2025 · Initial fees from franchised restaurants, 2025.
• $3Bsec.gov ·2025 · Food and paper at company-run restaurants, 2025.
• $2.9Bsec.gov ·2025 · Payroll and employee benefits at company-run restaurants, 2025.
• $2.4Bsec.gov ·2025 · Occupancy and other operating expenses at company-run restaurants, 2025.
• 46.1%sec.gov ·2025 · Operating margin, 2025, as printed in the report's MD&A.
• 95%sec.gov ·2025 · Share of McDonald's restaurants run by franchisees at the end of 2025 (the report says about this much).
• 4.5%sec.gov ·2025 · Worked out from the 10-K: restaurants McDonald's runs itself ÷ all restaurants, end of, 2025.
• 75sec.gov ·2025 · The developmental licensed segment covers more than this many countries.
• 82.5%sec.gov ·2025 · Worked out from the 10-K: U.S. franchised margins ÷ U.S. revenues from franchised restaurants, 2025.
• 11.6%sec.gov ·2025 · Worked out from the 10-K: U.S. company-operated margins ÷ U.S. company-operated sales, 2025.
• 84.2%sec.gov ·2025 · Worked out from the 10-K: franchised margins ÷ revenues from franchised restaurants, worldwide, 2025.
• 14.7%sec.gov ·2025 · Worked out from the 10-K: company-operated margins ÷ company-operated sales, worldwide, 2025.
• 90%sec.gov ·2025 · Franchised margins' share of McDonald's restaurant margin dollars, 2025 (the report says approximately this much).
• 56%sec.gov ·2025 · Share of the land under restaurants in its consolidated markets that McDonald's owns, end of 2025 (the report says approximately this much).
• 80%sec.gov ·2025 · Share of the buildings for restaurants in its consolidated markets that McDonald's owns, end of 2025 (the report says approximately this much).
• $22.8Bsec.gov ·2025 · Net property and equipment under franchise arrangements at the end of 2025.
• $7.1Bsec.gov ·2025 · Land included in the property under franchise arrangements at the end of 2025.
• $31.5Bsec.gov ·2025 · Future gross minimum rent payments due to McDonald's under existing conventional franchise arrangements, end of 2025.
• 20 yearssec.gov ·2025 · The usual length of a McDonald's franchise or license agreement.
• $750,000mcdonalds.com ·2026 · Non-borrowed, unencumbered personal funds McDonald's USA typically requires of a franchise candidate (net), for buying an existing restaurant. A new restaurant needs more.
• $100,000mcdonalds.com ·2026 · Working capital McDonald's USA recommends per restaurant, on top of the required funds.
• 2,276sec.gov ·2025 · Restaurants opened in 2025.
• 396sec.gov ·2025 · Restaurants closed in 2025.
• 2,600sec.gov ·2025 · Restaurants McDonald's expected to open worldwide in 2026 (the report says approximately this many).
• 750sec.gov ·2025 · Of the 2026 openings, about this many in the U.S. and International Operated Markets.
• 1,800sec.gov ·2025 · Developmental licensees and affiliates were expected to put up the money for more than this many of the 2026 openings.
• 150,000 peoplesec.gov ·2025 · McDonald's company employees worldwide at the end of 2025 (the report says over this many); franchisees' crews aren't counted.