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Consumer Discretionary · NYSE: MCD

McDonald's: how the business works

McDonald's collects rent and royalties from franchisees who run about 95% of its 45,356 restaurants and runs the rest itself, with revenue of $26.9 billion in FY2025.

By · Checked against filings: . Editorial policy. Corrections

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McDonald's Corporation · Chicago, Illinois

Updated for Q3 FY2026 · checked

Revenue, FY2025
$26.9B
Net income, FY2025
$8.6B
Restaurants, Sep 30, 2026
46,554
Run by franchisees, Dec 31, 2025
About 95%
Employees, FY2025 10-K
Over 150,000

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

The short version

McDonald's in 5 points

  1. 1 · What it sells

    McDonald's franchises and runs McDonald's restaurants, 45,356 at the end of 2025 with about 95% run by franchisees, and had $26.9 billion of revenue in FY2025.

    More: what it sells

  2. 2 · Who pays it

    In FY2025, franchisees paid 61.6% of revenue as rent, royalties and fees, diners at company-run restaurants paid 36.0% and other sources 2.4%.

    More: who pays it

  3. 3 · What it keeps from $100

    Of every $100 that came in during FY2025, McDonald's kept $31.7 as net income after $229 million of restructuring charges, and its operating income was $46.1 per $100 of revenue.

    More: what it keeps from $100

  4. 4 · Where the operating profit comes from

    In FY2025, International Operated Markets earned 51.5% of operating income and the U.S. 46.9%, and franchised restaurants supplied about 90% of restaurant margin dollars.

    More: where the operating profit comes from

  5. 5 · The one thing to watch

    In Q3 FY2026 revenue rose 1% while operating income rose 7%, helped by $139 million of other operating income against $37 million a year earlier.

    More: the one thing to watch

Sources: From McDonald's FY2025 10-K and Q3 FY2026 earnings release · checked

See the full receipt and the management scorecard below

Sources (3)
Next: Where $100 goes

01Where the money goes · FY2025

Where does $100 of McDonald's' money go?

Of every $100 that came in (revenue plus other income), this is where it went.

McDonald's · FY2025

Receipt for every $100

Where $100 of McDonald's' money went in FY2025
Company-run restaurants (food, paper, pay, occupancy)$30.7
Selling, general and admin$11.3
Franchised restaurants' occupancy$9.7
Other restaurant and operating costs$2.1
Interest$5.9
Income tax$8.7
Kept as net income$31.7
Total$100

Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.

How this is worked out

Cityfort calculation from FY2025 10-K. Of every $100 that came in during FY2025 (revenue plus net nonoperating income): each line = line ÷ $26,972 million × 100.

Sources (1)
Next: The business in one line

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02The business in one line

What does McDonald's do?

Franchisees pay McDonald's rent and royalties based on their restaurants' sales, and diners pay at the restaurants it runs itself; after occupancy costs, McDonald's kept $84 of every $100 of franchise revenue in FY2025.

  • In FY2025 franchisees paid 61.6% of McDonald's revenue as rent (38.8%), royalties (22.4%) and initial fees (0.3%); company-run restaurants brought in 36.0%.
  • Franchised restaurants supplied about 90% of FY2025 restaurant margin dollars: $13.9 billion, against $1.4 billion from company-run restaurants.
Next: Who pays it

03Who pays it

Who pays McDonald's?

  • Franchisees: rent

    39%

    of revenue

    Rent on restaurant properties McDonald's owns or leases, usually a percent of sales with a minimum.

  • Franchisees: royalties

    22%

    of revenue

    A percent of franchised restaurants' sales.

  • Franchisees: initial fees

    0%

    of revenue

    Fees paid when a restaurant opens or a franchise is granted.

  • Diners at company-run restaurants

    36%

    of revenue

    Customers buying food at the 2,039 restaurants McDonald's ran itself at Dec 31, 2025.

  • Other

    2%

    of revenue

    Franchisee technology fees and brand licensing.

  • Franchisees: rent39%
  • Franchisees: royalties22%
  • Franchisees: initial fees0%
  • Diners at company-run restaurants36%
  • Other2%

How spread out the customers are

McDonald's FY2025 10-K reports no single customer or franchisee share of revenue. Most revenue depends on franchisees as a group: the 10-K lists franchisees' finances and relations as a risk.

Sources (1)
Next: Why it makes money

04Why it makes money

Why does McDonald's make money?

Franchisees pay rent and royalties on their sales, and those payments carry few direct costs for McDonald's.

In FY2025 franchised revenues were $16.5 billion and occupancy costs on those restaurants $2.6 billion, leaving $13.9 billion. Company-run restaurants had $9.7 billion of sales but kept $1.4 billion after food, pay and occupancy. So most profit comes from franchisees' sales, not from selling food.

Operating income per $100 of revenue

$44.6$46.1

FY2021 to FY2025

  1. McDonald's owns or leases restaurant land and buildings
  2. Franchisees invest in equipment and run the restaurants
  3. Franchisees pay rent and royalties as a percent of their sales
  4. Few costs sit against that income, so most is kept
  5. Cash pays for dividends, buybacks and new restaurants
  6. More restaurants and higher sales raise rent and royalties

↺ Step 6 feeds back into step 1.

Sources (2)
Next: Business segments

05Business segments · FY2025

Which businesses make up McDonald's?

  • U.S.

    40%

    Restaurants in the United States: 13,706 at Dec 31, 2025, about 95% franchised. It earned 46.9% of FY2025 operating income.

    Revenue $10.8B · Operating profit $5.8B

  • International Operated Markets

    51%

    Markets where McDonald's runs or franchises restaurants directly, including Australia, Canada, France, Germany, Italy, Poland, Spain and the U.K.: 10,845 restaurants, about 89% franchised. It earned 51.5% of FY2025 operating income.

    Revenue $13.6B · Operating profit $6.4B

  • International Developmental Licensed Markets & Corporate

    9%

    Markets run by licensees and affiliates, including China and Japan where McDonald's holds minority stakes, plus corporate costs: 20,805 restaurants, about 99% franchised. It earned 1.6% of FY2025 operating income.

    Revenue $2.4B · Operating profit $203M

How the mix changed

  • U.S.
  • International Operated Markets
  • International Developmental Licensed Markets & Corporate

Revenue by segment, FY2021 to FY2025.

US$

See the numbers
How the mix changed (US$)
YearU.S.International Operated MarketsInternational Developmental Licensed Markets & Corporate
FY2021$8.9B$12.2B$2.1B
FY2022$9.6B$11.3B$2.3B
FY2023$10.6B$12.4B$2.5B
FY2024$10.6B$12.6B$2.7B
FY2025$10.8B$13.6B$2.4B
Sources (2)
Next: How has it done

06The numbers · Consolidated · US$

How has McDonald's done?

Revenue

$26.9BFY2025

Revenue was $23.2 billion in both FY2021 and FY2022, then rose each year to $26.9 billion in FY2025.

US$

See the numbers
Revenue (US$)
PeriodRevenue (US$)
FY2021$23.2B
FY2022$23.2B
FY2023$25.5B
FY2024$25.9B
FY2025$26.9B
Q4 FY2024$6.4B
Q1 FY2025$6.0B
Q2 FY2025$6.8B
Q3 FY2025$7.1B
Q4 FY2025$7.0B
Q1 FY2026$6.5B
Q2 FY2026$7.1B
Q3 FY2026$7.2B

Net profit

$8.6BFY2025

Net income fell to $6.2 billion in FY2022, which carried $1.3 billion of charges on selling the Russia business and a $537 million France tax settlement, then reached $8.6 billion in FY2025.

US$

See the numbers
Net profit (US$)
PeriodNet profit (US$)EPS ($)
FY2021$7.5B$10.04
FY2022$6.2B$8.33
FY2023$8.5B$11.56
FY2024$8.2B$11.39
FY2025$8.6B$11.95
Q4 FY2024$2.0B$2.80
Q1 FY2025$1.9B$2.60
Q2 FY2025$2.3B$3.14
Q3 FY2025$2.3B$3.18
Q4 FY2025$2.2B$3.03
Q1 FY2026$2.0B$2.78
Q2 FY2026$2.4B$3.32
Q3 FY2026$2.5B$3.51

Profit kept per $100 of revenue

$31.9FY2025

Operating income was $46.1 per $100 of revenue in FY2025, up from $44.6 in FY2021; net income was $31.9 per $100 of revenue.

$ of profit per $100 of revenue (net margin)

See the numbers
Profit kept per $100 of revenue ($ of profit per $100 of revenue (net margin))
YearNet marginEBITDA margin
FY202132.5%52.6%
FY202226.6%48.5%
FY202333.2%53.4%
FY202431.7%53.3%
FY202531.9%54.3%

Free cash flow

$7.2BFY2025

Free cash flow (cash from operations minus capital expenditures) rose from $6.7 billion in FY2024 to $7.2 billion in FY2025, while capital expenditures rose to $3.4 billion.

US$ · cash from operations minus spending on plants and equipment

See the numbers
Free cash flow (US$ · cash from operations minus spending on plants and equipment)
YearCash from operationsCapital spendingFree cash flow
FY2021$9.1B$2.0B$7.1B
FY2022$7.4B$1.9B$5.5B
FY2023$9.6B$2.4B$7.3B
FY2024$9.4B$2.8B$6.7B
FY2025$10.6B$3.4B$7.2B
See all yearly numbers
McDonald's annual financials, FY2021–FY2025, US$
YearRevenueEBITDANet profitEPS ($)Operating cashCapexFree cash
FY2021$23.2B$12.2B$7.5B$10.04$9.1B$2.0B$7.1B
FY2022$23.2B$11.2B$6.2B$8.33$7.4B$1.9B$5.5B
FY2023$25.5B$13.6B$8.5B$11.56$9.6B$2.4B$7.3B
FY2024$25.9B$13.8B$8.2B$11.39$9.4B$2.8B$6.7B
FY2025$26.9B$14.6B$8.6B$11.95$10.6B$3.4B$7.2B

EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Dec 31; McDonald's fiscal year is the calendar year, so Q3 FY2026 is July–September 2026). Net profit is the share belonging to the company's owners.

Download McDonald's's yearly and quarterly numbers (CSV, with source ids)

Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares

Sources (10)
Next: What they said, and what happened

07Who runs it

Who runs McDonald's, and did they deliver?

  • Christopher J. Kempczinski

    Chairman and Chief Executive Officer · since 2019

    CEO since November 2019 and Chairman since May 2024. 2025 total pay was $20.6 million.

  • Skye Anderson

    President, McDonald's USA · since 2026

    Appointed Aug 4, 2026; previously Chief Operating Officer of McDonald's USA, with over 26 years at the company. She replaced Joseph Erlinger, who stays as an adviser until early 2027.

  • James D. Farley, Jr.

    Director · since 2026

    Elected Feb 4, 2026, when the board grew to 12; named to the Audit & Finance and Corporate Responsibility committees on Mar 30, 2026.

What they said, and what happened

4 too early to tell

  1. Said on Feb 24, 2026

    McDonald's said in its FY2025 10-K that it expected a 2026 operating margin in the mid-to-high 40% range.

    What happened

    McDonald's reported a GAAP operating margin of 47.6% for the first nine months of 2026 and repeated the outlook on Nov 4, 2026. Full-year results are not out yet.

    Too early to tell

  2. Said on Feb 24, 2026

    McDonald's said it expected 2026 capital expenditures of $3.7 billion to $3.9 billion, with about 2,600 restaurant openings.

    What happened

    On Nov 4, 2026 McDonald's revised the outlook to capital expenditures of about $3.7 billion and about 2,500 openings. Capital expenditures were $1.5 billion in the first half of 2026. Restaurants rose from 45,356 at Dec 31, 2025 to 46,554 at Sep 30, 2026, after closures.

    Too early to tell

  3. Said on Feb 24, 2026

    McDonald's said it expected 2026 free cash flowCash from operations minus spending on buildings and equipment. Learn more conversion in the low-to-mid 80% range.

    What happened

    McDonald's repeated this on Nov 4, 2026. Full-year cash flow is not out yet.

    Too early to tell

  4. Said on Sep 23, 2026

    At its Sep 23, 2026 Investor Day McDonald's targeted an operating margin in the low-to-mid 50% range and free cash flow conversion in the mid-to-high 80% range by 2030.

    What happened

    The target year is 2030.

    Too early to tell
Sources (8)
Next: What could go wrong

08What could go wrong

What could go wrong for McDonald's?

  • Debt

    Large debt and negative shareholders' equity

    McDonald's owed $39.9 billion at Jun 30, 2026 and held $0.8 billion of cash, with a shareholders' deficit of $1.0 billion. Interest expense was $1.6 billion in FY2025. The 10-K lists a credit-rating cut or higher funding costs as a risk.

    Watch Interest expense in each release and the S&P and Moody's ratings in the next 10-K.

  • Demand

    Fewer U.S. guests

    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.

    Watch U.S. comparable sales and the guest-count wording in each release.

  • Other

    Profit growth helped by other operating income

    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.

    Watch "Other operating (income) expense, net" and gains on restaurant sales in each quarter.

  • Execution

    Depends on franchisees' finances

    Franchisees paid 61.6% of FY2025 revenue, and the 10-K lists their finances and relations as a risk. Under its NEXT plan McDonald's said it plans about $8.5 billion of rent relief and capital support for franchisees through 2036.

    Watch Partnering support and franchised restaurant margins in each 10-K and 10-Q.

  • Currency

    Currency moves

    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.

    Watch Growth in constant currency versus reported growth in each release.

  • Demand

    China sales

    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.

    Watch China comparable sales and equity in earnings of affiliates in each release.

  • Raw-material prices

    Labor and food costs

    Company-run restaurants spent $8.3 billion on food, paper, pay and occupancy in FY2025 against $9.7 billion of sales. The 10-K lists labor availability and cost, and commodity and operating costs, as risks.

    Watch Company-operated restaurant margins in each release.

Sources (5)
Next: Supporters vs. critics

09Both sides

What do supporters and critics point to?

Facts each side points to. We don't say which side is right.

What supporters point to

  • Franchised restaurants supplied about 90% of FY2025 restaurant margin dollars, under conventional franchise agreements that generally run 20 years.
  • Restaurants grew from 41,822 at Dec 31, 2023 to 46,554 at Sep 30, 2026.
  • Operating income rose from $10.4 billion in FY2021 to $12.4 billion in FY2025.
  • Free cash flow was $7.2 billion in FY2025, and the 10-K says dividends have been raised every year for 50 years.
  • The S&P BBB+ and Moody's Baa1 ratings are the same in the FY2023, FY2024 and FY2025 10-Ks.

What critics point to

  • Shareholders' equity was negative in every year from FY2021 to FY2025, and debt was $39.9 billion at Jun 30, 2026.
  • U.S. comparable sales fell 0.2% in Q3 FY2026, with negative comparable guest counts.
  • Q3 FY2026 operating income rose 7% on revenue up 1%, helped by $139 million of other operating income against $37 million.
  • Capital expenditures rose from $2.0 billion in FY2021 to $3.4 billion in FY2025, and the NEXT plan adds about $8.5 billion of franchisee support through 2036.
  • China had negative comparable sales in Q3 FY2026 even as it added 893 restaurants in a year.
Next: What to watch next

10What to watch next

What should you watch next at McDonald's?

Next event

Q4 FY2026 results

Date not announced yet.

  • The Q3 FY2026 10-Q

    It was not on EDGAR when checked on Nov 6, 2026. It gives Q3 cash flow and the Sep 30, 2026 balance sheet, which this page does not yet show.

  • U.S. guest counts

    U.S. comparable sales fell 0.2% in Q3 FY2026. The CEO said the U.S. improved as the quarter went on, after changes on value.

  • Cost of the NEXT plan

    McDonald's said on Sep 23, 2026 it plans about $3 billion a year of baseline capital expenditures in 2027–2030 plus franchisee support, while targeting a low-to-mid 50% operating margin by 2030.

Next: Key facts

11Key facts

Key facts about McDonald's

What does McDonald's do?
McDonald's Corporation franchises and runs McDonald's restaurants. It had 45,356 restaurants at Dec 31, 2025, about 95% run by franchisees, and 46,554 in 114 countries at Sep 30, 2026. McDonald's revenue was $26.9 billion in FY2025 (calendar 2025).
How does McDonald's make money?
In FY2025 McDonald's revenue of $26.9 billion came from rent paid by franchisees (38.8%), royalties on franchisees' sales (22.4%), initial franchise fees (0.3%), sales at company-operated restaurants (36.0%) and other revenues such as technology fees and brand licensing (2.4%).
Who are McDonald's customers?
McDonald's has two kinds of payers. Franchisees paid 61.6% of its FY2025 revenue as rent, royalties and fees. Diners at the 2,039 restaurants McDonald's ran itself at Dec 31, 2025 paid 36.0%.
How much does McDonald's earn from franchised restaurants?
McDonald's franchised revenues were $16.5 billion in FY2025: $10.4 billion of rent, $6.0 billion of royalties and $88 million of initial fees. After $2.6 billion of occupancy costs, franchised restaurant margins were $13.9 billion, about 90% of McDonald's restaurant margin dollars.
How much do McDonald's company-operated restaurants bring in?
McDonald's company-operated restaurants had sales of $9.7 billion in FY2025 and costs of $8.3 billion for food, paper, pay and occupancy, leaving restaurant margins of $1.4 billion. McDonald's ran 2,039 restaurants itself at Dec 31, 2025.
Is McDonald's profitable?
Yes. McDonald's had operating income of $12.4 billion and net income of $8.6 billion in FY2025, on revenue of $26.9 billion. In Q3 FY2026 (July to September 2026) net income was $2.5 billion, up 9% from a year earlier.
What is McDonald's revenue by segment?
In FY2025 McDonald's International Operated Markets segment had revenue of $13.6 billion (50.7%), the U.S. $10.8 billion (40.3%) and International Developmental Licensed Markets & Corporate $2.4 billion (9.0%).
Who owns McDonald's?
McDonald's is widely held with one vote per share. Filings show Vanguard Capital Management with 7.52% (Mar 31, 2026), BlackRock with 7.3% (data as of Dec 31, 2023, cited in the 2026 proxy) and State Street with 5.1% (Jun 30, 2026). Directors and executive officers held less than 1% on Mar 1, 2026.
Why is McDonald's shareholders' equity negative?
McDonald's has bought back so many shares that treasury stock at cost ($79.3 billion at Dec 31, 2025) exceeds retained earnings ($70.3 billion). Shareholders' equity was a deficit of $1.8 billion at Dec 31, 2025 and $1.0 billion at Jun 30, 2026.
How much does McDonald's pay in dividends?
McDonald's declared dividends of $7.17 per share for FY2025 and paid $5.1 billion in cash dividends that year. On Nov 4, 2026 it declared a quarterly dividend of $1.93 per share, 4% more than the previous $1.86.
Sources (7)
Next: Go deeper

Terms on this page

Each explains the term in plain English, with the same number from other companies on Cityfort.

Go deeper

More detail from the same filings. Open any section.

12What it sells

12What it sells

What does McDonald's sell?

McDonald's is mostly a landlord and brand owner. Independent franchisees run about 95% of McDonald's restaurants and pay it rent and a share of sales. McDonald's runs the other restaurants itself and keeps their sales.

  • Rent from franchisees ($10.4B in FY2025)

    Under a conventional franchise, McDonald's generally owns or leases the land and building long term, and the franchisee pays rent, usually a percent of sales with a minimum.

  • Royalties ($6.0B)

    Franchisees pay a royalty based on a percent of their restaurants' sales.

  • Initial fees ($88M)

    Paid when a new restaurant opens or a new franchise is granted. Conventional franchise agreements generally run 20 years.

  • Company-operated restaurants ($9.7B)

    Food sold at the 2,039 restaurants McDonald's ran itself at Dec 31, 2025.

  • Other revenues ($647M)

    Fees from franchisees that recover part of McDonald's technology and digital platform costs, plus brand licensing for packaged goods sold in stores.

What it does

  • Does: Owns or leases the land and buildings of many franchised restaurants and charges franchisees rent
  • Does: Collects royalties on franchisees' sales
  • Does: Runs about 2,000 restaurants itself
  • Does: Holds minority stakes in the businesses that run McDonald's in mainland China (48%) and Japan (35%)

What it does not do

  • Does not: Does not count franchisees' food sales as its revenue: of $139.4 billion of FY2025 Systemwide sales, McDonald's revenue was $26.9 billion
  • Does not: Does not employ the staff of franchised restaurants
Sources (1)
13How the money flows

13How the money flows · FY2025

How does money flow through McDonald's?

Money in

  • Rent from franchisees$10.4B
  • Royalties from franchisees$6.0B
  • Initial fees from franchisees$88M
  • Sales at company-run restaurants$9.7B
  • Other revenues$647M
  • Nonoperating income, net$87M

The company

McDonald's

$27.0B came in

Money out

  • Company-run restaurants (food, paper, pay, occupancy)$8.3B
  • Selling, general and admin costs$3.0B
  • Franchised restaurants' occupancy costs$2.6B
  • Other restaurant and operating costs$566M
  • Interest$1.6B
  • Income tax$2.3B
  • Net income$8.6B
  1. Franchisees paid McDonald's $16.5 billion in FY2025 as rent, royalties and initial fees.
  2. Diners at company-run restaurants paid $9.7 billion, and other revenues added $0.6 billion.
  3. Running company-run restaurants cost $8.3 billion, and occupancy costs of franchised restaurants were $2.6 billion.
  4. Selling, general and admin costs took $3.0 billion, leaving $12.4 billion of operating income.
  5. After $1.6 billion of interest and $2.3 billion of tax, $8.6 billion was left as net income.
Sources (1)
14What it needs to run

14What it needs to run

What does McDonald's need to run?

  • Land and buildings

    McDonald's owned about 56% of the land and about 80% of the buildings for restaurants in its consolidated markets. Net property and equipment was $28.2 billion at Dec 31, 2025.

  • Franchisees

    Under a conventional franchise the franchisee pays for equipment, signs, seating and décor. About 95% of restaurants were franchised at Dec 31, 2025.

  • People

    Over 150,000 employees, about 70% outside the U.S., according to the FY2025 10-K.

  • Drive thrus and delivery

    Nearly 29,000 restaurants had drive thrus and nearly 41,000 offered delivery, according to the FY2025 10-K.

  • Borrowed money

    Long-term debt was $40.0 billion at Dec 31, 2025; 97% was at fixed rates (including swaps) and 39% was in foreign currencies.

Sources (1)
15Where growth could come from

15Where growth could come from

Where could McDonald's' growth come from?

McDonald's said on Nov 4, 2026 that for 2026 it expects new restaurants to add about 2.5% to Systemwide sales growth in constant currency, an operating margin in the mid-to-high 40% range, interest expense up 4% to 6%, a tax rate of 21% to 23% and free cash flow conversion in the low-to-mid 80% range.
Management statement, Nov 4, 2026. Reported as a statement, not our forecast.

  • New restaurants

    Working

    46,554 restaurants, Sep 30, 2026

    Up from 44,599 a year earlier. China had 8,395 restaurants, 893 more than a year earlier. McDonald's opened 2,276 and closed 396 restaurants in 2025.

    Status: Working, on track against what the company said.

  • International Operated Markets

    Working

    Revenue $13.6B in FY2025

    Segment revenue rose from $12.6 billion in FY2024; operating income rose from $5.9 billion to $6.4 billion. Q3 FY2026 operating income was $1.8 billion, up from $1.76 billion.

    Status: Working, on track against what the company said.

  • U.S. sales

    Mixed

    U.S. comparable sales −0.2%, Q3 FY2026

    U.S. comparable sales (a company measure) rose 6.8% in Q4 FY2025 and 3.9% in Q1 FY2026, then 0.8% and −0.2%. The CEO said in the Q3 release that the U.S. improved "as the quarter progressed following our intervention on value."

    Status: Mixed, partly on track.

  • Loyalty program

    Working

    $41B loyalty-member sales, 12 months to Sep 2026

    Systemwide sales to loyalty members (a company measure that includes franchised restaurants) were nearly $37 billion in FY2025 and $41 billion in the 12 months to Sep 30, 2026, in 70 markets.

    Status: Working, on track against what the company said.

  • McDonald's > NEXT plan

    New

    Target: operating margin low-to-mid 50% range by 2030

    At its Sep 23, 2026 Investor Day McDonald's set 2030 targets and said it plans about $8.5 billion of support for franchisees (rent relief and capital) through 2036, about $5 billion of it through 2030.

    Status: New, recently announced.

Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.

Sources (7)
16The company's own measures (non-GAAP)

16The company's own measures · FY2025 and Q3 FY2026

What do McDonald's' own measures show?

Adjusted (non-GAAP) figures and sales measures are McDonald's own, shown next to the official (GAAP) number. They are never added together.

  • Official (GAAP): Diluted EPS, FY2025

    $11.95

    Company's own measure: Non-GAAP diluted EPS, FY2025 (McDonald's measure)

    $12.20

    Leaves out restructuring charges under McDonald's Accelerating the Organization program ($229 million before tax in FY2025).

  • Official (GAAP): Operating income, FY2025

    $12.4B

    Company's own measure: Non-GAAP operating income, FY2025 (McDonald's measure)

    $12.6B

    Same exclusion. McDonald's states a non-GAAPThe company's own "adjusted" numbers, not the official (GAAP) ones. Always read them next to the official figure. Learn more operating margin of 46.9% against a GAAP operating margin of 46.1%.

  • Official (GAAP): Diluted EPS, Q3 FY2026

    $3.51

    Company's own measure: Non-GAAP diluted EPS, Q3 FY2026 (McDonald's measure)

    $3.57

    Leaves out $56 million before tax ($0.06 a share) of restructuring charges.

  • Official (GAAP): Revenue, FY2025

    $26.9B

    Company's own measure: Systemwide sales, FY2025

    $139.4B

    Sales at all McDonald's restaurants, company-run and franchised. Franchisees' sales are not McDonald's revenue; McDonald's earns rent and royalties on them.

  • Official (GAAP): Revenue growth, FY2025 (Cityfort calculation from FY2025 10-K)

    3.7%

    Company's own measure: Comparable sales growth, FY2025

    3.1%

    Change in sales at all restaurants, company-run and franchised, open at least thirteen months, excluding currency effects and hyperinflationary markets.

  • Official (GAAP): Revenue growth, Q3 FY2026 (Cityfort calculation from Q3 FY2026 earnings release)

    1.1%

    Company's own measure: Comparable sales growth, Q3 FY2026

    1.5%

    Same definition. By segment: U.S. −0.2%, International Operated Markets 1.4%, International Developmental Licensed Markets 4.2%.

  • Official (GAAP): Revenue, 12 months to Sep 30, 2026 (Cityfort calculation from the Q4 FY2025 to Q3 FY2026 earnings releases)

    $27.8B

    Company's own measure: Systemwide sales to loyalty members, 12 months to Sep 30, 2026

    $41.0B

    Sales to customers who identify as loyalty members at company-run and franchised restaurants in 70 markets; most of it is franchisees' sales, not McDonald's revenue.

These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.

Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out

Sources (5)
17Financial strength and debt

17Financial strength · Jun 30, 2026

How much debt does McDonald's have?

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.
  • Total debt$39.9B
  • Cash and investments$822M
  • Net debt (debt minus cash)$39.0B
  • Net worth (shareholders' money)−$1.0B
Interest cover
7.8×
how many times operating profit covers interest
  • Debt is long-term debt as reported ($39,863 million at Jun 30, 2026); McDonald's classifies its commercial paper as long-term. Net debt is a Cityfort calculation from the Q2 FY2026 10-Q, and the 3.7 times figure from it and the FY2025 10-K.
  • Lease liabilities are separate and not counted as debt here: $14.7 billion at Jun 30, 2026.
  • Shareholders' equity was negative in every year on this page: a deficit of $1.8 billion at Dec 31, 2025 and $1.0 billion at Jun 30, 2026. Treasury stock bought back at cost ($79.3 billion at Dec 31, 2025) exceeds retained earnings ($70.3 billion), so debt-to-equity is not shown.
  • At Dec 31, 2025, 97% of debt was at fixed rates (including swaps), 39% was in foreign currencies and $3.2 billion was due in 2027. The 10-K's maturity table shows $0 due in 2026 after classifying $1.5 billion of short-term obligations as long-term, backed by a credit line to June 2028. The FY2025 10-K states total debt as 105% of total capitalization.
  • Interest coverage (FY2025 operating income ÷ interest expense) is a Cityfort calculation from the FY2025 10-K. A $4.0 billion credit line was unused at Dec 31, 2025 and runs to June 2028.
Sources (2)
18Who owns it

18Who owns it · ownership as of Mar 23, 2026

Who owns McDonald's?

McDonald's has one class of common stock, one vote per share, held by over 5.2 million shareholders. The 23 directors and executive officers held 1,756,901 shares on Mar 1, 2026, which the proxy calls less than 1% (0.25% of the Mar 23, 2026 share count: Cityfort calculation from the 2026 proxy statement).
Officers and directors (as a group), shares
0.3%
Share classes
McDonald's share classes: shares outstanding (millions) and votes per share
ClassShares (millions)Votes per shareHeld by% of shares% of votesTraded
Common stock (Shares outstanding on Jun 30, 2026 (Q2 FY2026 10-Q cover); 710.8 million on the Mar 23, 2026 record date.)707.61–––Yes
Holders of 5% or more
McDonald's holders of 5% or more, from the proxy statement or later Schedule 13G filings; each row shows its own date
HolderSharesVotesAs ofSourceNote
Vanguard Capital Management7.5%–Apr 30, 2026S26Schedule 13G, holding as of Mar 31, 2026 (53,486,415 shares). Not in the proxy table.
BlackRock7.3%–Apr 7, 2026S20Proxy figure (51,974,467 shares), based on a Schedule 13G/A filed Jan 26, 2024 with data as of Dec 31, 2023.
State Street5.1%–Aug 7, 2026S25Schedule 13G, holding as of Jun 30, 2026 (36,120,258 shares).
The Vanguard Group0.0%–Mar 27, 2026S20, S27The 2026 proxy listed 10.03% (71,635,329 shares) from an earlier filing. A Schedule 13G/A filed Mar 27, 2026 shows 0 shares after a Jan 12, 2026 internal realignment; its subsidiaries now report separately.

From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.

Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes

Sources (5)
19What it does with profit

19What it does with profit

What does McDonald's do with its profit?

Dividends are declared per share; payout = dividends declared per share ÷ diluted EPS (Cityfort calculation from the FY2023 and FY2025 10-Ks). The FY2025 10-K says McDonald's has paid dividends for 50 consecutive years and raised them every year, and returned $7.1 billion to shareholders in 2025. On Nov 4, 2026 it declared a quarterly dividend of $1.93, up 4%.

Dividend per share

$7.17FY2025

Dividend paid for each share, by financial year.

$ per share

See the numbers
Dividend per share ($ per share)
YearDividend per shareShare of profit paid out
FY2021$5.2552.3%
FY2022$5.6667.9%
FY2023$6.2353.9%
FY2024$6.7859.5%
FY2025$7.1760.0%

  • Buyback · Nov 21, 2024

    Board authorized buying back up to $15.0 billion of shares, effective Jan 1, 2025, with no expiry date.

    $15.0B

  • Buyback · Dec 31, 2025

    Bought back 6.7 million shares in 2025; cash paid for treasury stock was $2,056 million.

    $2.1B

  • Buyback · Jun 30, 2026

    Cash paid for treasury stock in the first half of 2026.

    $1.3B

Sources (3)
20Governance signals

20Governance signals

What do McDonald's' governance filings show?

Auditor
Ernst & Young LLP
Auditor changes
None in the period covered
Audit qualifications
None reported
Related-party dealings
This version of the page does not summarize the related-person transactions section of the 2026 proxy. Audit fees paid to Ernst & Young were $11.2 million for 2025, up from $9.9 million for 2024.
Credit rating
S&P and Moody's (as stated in McDonald's FY2025 10-K) BBB+ (S&P) / Baa1 (Moody's) for long-term debt; A-2 / P-2 for commercial paper (outlook not stated in the 10-K; the same ratings appear in the FY2023 and FY2024 10-Ks), Feb 24, 2026

A credit rating describes the company's ability to repay debt. It is not a rating of the share.

Flags to know about

  • other

    Chair and CEO roles combined

    Christopher Kempczinski has been CEO since November 2019 and also Chairman since May 2024.

  • other

    CEO pay ratio

    The 2026 proxy states a CEO pay ratio of 1,082 to 1. The median employee was a crew member in Poland paid $19,020.

  • disclosure

    Free cash flow wording in the FY2025 10-K

    The FY2025 10-K's discussion on p.19 calls FY2025 free cash flow a decrease of $510 million. Its cash flow statement shows an increase of $514 million, from $6,672 million to $7,186 million, and p.8 calls it an 8% increase.

Sources (4)
21What the market paid

21What the market paid · price as of Nov 5, 2026

What did the market pay for McDonald's on Nov 5, 2026?

Price as of Nov 5, 2026 (shown for education; prices change daily).

Price as of Nov 5, 2026: McDonald's closed at $278.04 (Nasdaq historical data; McDonald's is listed on the NYSE). Times 707.6 million shares (Jun 30, 2026) that is a market value of about $196.8 billion (Cityfort calculation from the Nov 5, 2026 closing price and the Q2 FY2026 10-Q cover). P/E is price ÷ earnings per share: 22.0 on diluted EPS of $12.64 for the 12 months to Sep 30, 2026 (Cityfort calculation from the Q4 FY2025 to Q3 FY2026 earnings releases). The declared quarterly dividend of $1.93 adds up to $7.72 a year, 2.8% of that price.

Share price
$278.04
Market value (market cap)
$196.8B
P/E
22×

More price-based ratios · as of Nov 5, 2026

Each ratio divides a number from the company's filings by the market value or share price on Nov 5, 2026. Prices change daily, so these ratios do too.

Shares used for the market value: 707.6 million ($278.04 × 707.6 million shares ≈ $196.8B). Source: Form 10-Q, Q2 2026 (quarter ended Jun 30, 2026); Definitive proxy statement (DEF 14A), 2026 annual meeting

Source: MCD historical prices, closing price Nov 5, 2026 (Nasdaq historical data); Form 10-Q, Q2 2026 (quarter ended Jun 30, 2026); Earnings release, Q3 2026 (Form 8-K, Ex. 99.1) and 3 more

Sources (8)
22How it got here

22How it got here

How did McDonald's get here?

  1. 2021

    Milestone

    Sale of McDonald's Japan shares

    FY2021 income included $339 million of net gains before tax, mainly from selling part of McDonald's stake in McDonald's Japan.

  2. 2022

    Crisis

    Exit from Russia

    McDonald's sold its Russia business and booked $1.3 billion of charges in FY2022; it also paid a $537 million France tax-audit settlement.

  3. 2023

    Business-model change

    Accelerating the Organization

    McDonald's booked charges for its Accelerating the Organization restructuring: $290 million in FY2023 (with related items), $221 million in FY2024 and $229 million in FY2025.

  4. 2024

    Business-model change

    Bigger stake in China

    On Jan 30, 2024 McDonald's raised its stake in the business running McDonald's in mainland China, Hong Kong and Macau from 20% to 48%, paying $1.8 billion.

  5. 2024

    Milestone

    South Korea sold, Israel bought

    McDonald's sold its South Korea business and acquired its Israel business in 2024. After the South Korea sale, company-run sales in its licensed-markets segment fell 49% in FY2025.

  6. 2024

    Milestone

    CEO becomes Chairman

    CEO Christopher Kempczinski also became Chairman in May 2024.

  7. 2026

    Milestone

    New head of McDonald's USA

    Skye Anderson became President of McDonald's USA on Aug 4, 2026.

  8. 2026

    Business-model change

    McDonald's > NEXT

    At its Sep 23, 2026 Investor Day McDonald's set 2030 targets and planned about $8.5 billion of support for franchisees through 2036.

Sources (6)

23Sources and changes

Where every number on this page comes from

Sources (23 documents)
  1. S1Form 10-K, fiscal year 2025 (ended Dec 31, 2025) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 24, 2026
  2. S2Form 10-K, fiscal year 2024 (ended Dec 31, 2024) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 25, 2025
  3. S3Form 10-K, fiscal year 2023 (ended Dec 31, 2023) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 22, 2024
  4. S4Form 10-K, fiscal year 2022 (ended Dec 31, 2022) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 24, 2023
  5. S5Form 10-Q, Q2 2026 (quarter ended Jun 30, 2026) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Aug 7, 2026
  6. S11Earnings release, Q3 2026 (Form 8-K, Ex. 99.1) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Nov 4, 2026
  7. S12Supplemental information, Q3 2026 (Form 8-K, Ex. 99.2) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Nov 4, 2026
  8. S13Earnings release, Q2 2026 (Form 8-K, Ex. 99.1) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Aug 4, 2026
  9. S14Earnings release, Q1 2026 (Form 8-K, Ex. 99.1) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · May 7, 2026
  10. S15Earnings release, Q4 and full year 2025 (Form 8-K, Ex. 99.1) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 11, 2026
  11. S16Earnings release, Q3 2025 (Form 8-K, Ex. 99.1) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Nov 5, 2025
  12. S17Earnings release, Q2 2025 (Form 8-K, Ex. 99.1) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Aug 6, 2025
  13. S18Earnings release, Q1 2025 (Form 8-K, Ex. 99.1) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · May 1, 2025
  14. S19Earnings release, Q4 and full year 2024 (Form 8-K, Ex. 99.1) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 10, 2025
  15. S20Definitive proxy statement (DEF 14A), 2026 annual meeting · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 7, 2026
  16. S21Form 8-K, Item 7.01, Ex. 99.1: McDonald's > NEXT strategy and financial targets (Investor Day) · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Sep 23, 2026
  17. S22Form 8-K, Item 5.02 and Ex. 99.1: President, McDonald's USA transition · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Aug 4, 2026
  18. S23Form 8-K, Item 5.02: James D. Farley, Jr. elected director · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Feb 10, 2026
  19. S24Form 8-K/A, Item 5.02: Farley committee appointments · McDonald's Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Apr 2, 2026
  20. S25Schedule 13G, State Street Corporation (event Jun 30, 2026) · SEC EDGAR · Tier 1: company or exchange filing · Aug 7, 2026
  21. S26Schedule 13G, Vanguard Capital Management (event Mar 31, 2026) · SEC EDGAR · Tier 1: company or exchange filing · Apr 30, 2026
  22. S27Schedule 13G/A, The Vanguard Group (event Mar 13, 2026; 0 shares after internal realignment) · SEC EDGAR · Tier 1: company or exchange filing · Mar 27, 2026
  23. S29MCD historical prices, closing price Nov 5, 2026 (Nasdaq historical data) · Nasdaq, Inc. · Tier 1: company or exchange filing · Nov 6, 2026
Changes to this page (v1 · Nov 6, 2026)
  1. v1 · Nov 6, 2026First version, through Q3 FY2026 (quarter ended Sep 30, 2026) from the Nov 4, 2026 release. The Q3 FY2026 10-Q was not yet filed, so the balance sheet is as of Jun 30, 2026. (first version)

Numbers come only from tier 1 and tier 2 sources. Read how we research.

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