McDonald's vs. Starbucks: how they make money

• Franchisees: rent · 38.8% of revenueRent on restaurant properties McDonald's owns or leases, usually a percent of sales with a minimum.
• Franchisees: royalties · 22.4% of revenueA percent of franchised restaurants' sales.
• Franchisees: initial fees · 0.3% of revenueFees paid when a restaurant opens or a franchise is granted.
• Diners at company-run restaurants · 36.0% of revenueCustomers buying food at the 2,039 restaurants McDonald's ran itself at Dec 31, 2025.
• Other · 2.4% of revenueFranchisee technology fees and brand licensing.

• Customers in company-operated coffeehouses · 81.6% of revenuePeople buying drinks and food in the 13,397 coffeehouses Starbucks runs: 10,902 in North America and 2,495 elsewhere.
• Licensees · 12.2% of revenueCompanies that run 28,210 Starbucks coffeehouses, including the China joint venture. They buy products and equipment from Starbucks and pay royalties and other fees.
• Other channels · 6.2% of revenueMostly packaged coffee and tea sold through Nestlé to grocery stores, warehouse clubs and foodservice.

FY2025

FY2026

Debt

$39.9B

Cash and investments

$822M

On Jun 30, 2026.

At Jun 30, 2026 McDonald's owed $39.9 billion and held $0.8 billion of cash; net debt was about 3.7 times its FY2025 cash from operations.

Debt

$13.3B

Cash and investments

$3.9B

On Sep 27, 2026.

At Sep 27, 2026, Starbucks's debt exceeded its cash and short-term investments by $9.4 billion, about 1.9 years of FY2026 operating cash flow.

• One class of shares.
• Officers and directors as a group: 0.3% of shares (as of Mar 23, 2026).
• Vanguard Capital Management: 7.5% (as of Apr 30, 2026).
• BlackRock: 7.3% (as of Apr 7, 2026).
• State Street: 5.1% (as of Aug 7, 2026).
• 1 more holders on the McDonald's page.

• One class of shares.
• Officers and directors as a group: 0.0% of shares (as of Jan 16, 2026).
• Capital Research Global Investors: 9.0% (as of May 14, 2026).
• Capital World Investors: 8.2% (as of Aug 12, 2026).
• Vanguard Capital Management LLC: 7.5% (as of Apr 30, 2026).
• 1 more holders on the Starbucks page.

• Fewer U.S. guests (demand)U.S. comparable sales fell 0.2% in Q3 FY2026, and McDonald's said comparable guest counts were negative. U.S. company-run restaurant margins fell 16% to $75 million in the quarter.
• Profit growth helped by other operating income (other)In Q3 FY2026 revenue rose 1% while operating income rose 7%. Other operating income was $139 million against $37 million a year earlier, including $97 million of gains on selling restaurant businesses.
• Currency moves (currency)International Operated Markets brought in 50.7% of FY2025 revenue, and 39% of debt was in foreign currencies at Dec 31, 2025. The 10-K lists exchange rates among the risks of its global scope.
• China sales (demand)McDonald's said China had negative comparable sales in Q3 FY2026, while China restaurants grew by 893 to 8,395. McDonald's carried its 48% China stake at $2.0 billion at Dec 31, 2025.

• Labor costs and unions (other)Coffeehouse operating expenses, mainly staff wages and benefits and occupancy, took $45.34 per $100 of FY2026 revenue. Unions had representation rights at about 6% of US company-operated stores in the FY2025 10-K. Starbucks says the risk of a material loss from union-related lawsuits is remote.
• China is now a minority stake (customer or supplier concentration)Since Mar 30, 2026 Starbucks owns 40% of the China joint venture and earns product sales and royalties from it. International revenue was $1.3 billion in Q4 FY2026, against $2.1 billion a year earlier.
• Dividends above net income (liquidity)Dividends paid were 111.8% of net income in FY2026 and 149.3% in FY2025. Free cash flow of $3.7 billion covered FY2026 dividends of $2.8 billion.
• Competition (competition)The FY2025 10-K says Starbucks faces intense competition from specialty coffee shops, quick-service restaurants and ready-to-drink coffee makers, and competes for prime locations and staff.