MCDONALDS CORP

McDonald’s Corporation franchises and operates quick‑service restaurants worldwide, selling burgers, chicken, fries, beverages and breakfast items. The company generates revenue through company‑operated restaurant sales and a larger stream of franchised revenues—royalties, rent and fees—supported by a portfolio of owned real estate and standardized operating systems that drive scale and consistent cash generation.^[1]

Business Segments

• U.S.: Company-operated and franchised restaurant sales and franchised revenues; represents roughly 41% of consolidated revenues.^[2]
• International Operated Markets: Company‑operated and franchised activity across major non‑U.S. markets; about 49% of consolidated revenues.^[2]
• International Developmental Licensed Markets & Corporate: revenues from developmental licensees, affiliates and corporate activities; about 10% of consolidated revenues.^[2]

Competitive Position

• Recognized global brand and scale: Longstanding brand awareness and a massive global footprint drive high customer frequency and marketing efficiency.^[3]
• Franchise + real‑estate model: A large proportion of restaurants are franchised and many sites are owned/leased by the company, producing steady, high‑margin franchised revenues (royalties, rent).^[3]

Investment Considerations

• Cash generation and capital returns: The franchising model and property income historically support strong free cash flow and enable dividends and buybacks; investors value consistent cash returns.^[4]
• Growth levers: Expansion of net restaurant units, loyalty/digital adoption and menu/operational improvements can drive higher frequency and margin leverage across the system.^[4]
• Operational risks and cost pressure: Exposure to commodity prices, labor costs and supply‑chain disruptions can compress restaurant margins, particularly for company‑operated locations.^[2]
• Franchise and regulatory risks: The company’s performance depends on franchisee economics and relations; regulatory or legal developments affecting franchising practices or property arrangements could affect revenue and returns.^[2]