McDonald’s Corporation

McDonald's serves food and drinks at quick-service (fast-food) restaurants in more than 100 countries. Of its 45,356 restaurants at the end of 2025, about 95% were franchised. That means independent owners run them and pay McDonald's to use its brand and operating system. The company runs the rest itself, partly to train staff and test new ideas before rolling them out.

Revenue comes from sales at company-run restaurants and fees from franchisees. In a conventional franchise, McDonald's usually owns or leases the land and building, while the franchisee pays for equipment, signs and seating. The franchisee then pays rent plus royalties (a percentage of sales), along with initial fees when a restaurant opens. Agreements generally last 20 years. In some markets, licensees supply all the capital, including the real estate, and pay a royalty on sales. "Other" revenue comes from technology fees and licensing the brand for packaged goods. The setup aims for steady income, but it rises and falls with franchisees' sales.

For the year ended December 31, 2025, revenue totaled $26.9 billion. International Operated Markets supplied 51% ($13.6 billion) and the U.S. 40% ($10.8 billion). The remaining 9% ($2.4 billion) came from International Developmental Licensed Markets & Corporate, which covers more than 75 countries, including affiliate markets such as China and Japan, where McDonald's also owns a stake.

• In Q2 FY2026 (ended Jun 30, 2026), revenue was $7.10B, up 3.7% from a year earlier, and net income was $2.36B (+4.8%).
• For fiscal 2025, revenue was $26.89B (+3.7% year over year; +7.0% a year from FY2020 to FY2025) with a 31.9% net margin.

• Over FY2021–FY2025: $12.68B in buybacks and $22.60B in dividends.
• At least 9 consecutive annual increases: every fiscal year in the SEC data (FY2016–FY2025) shows an increase; the true streak may be longer.
• Regular dividends per share grew +7.3% a year over 5 years (FY2020–FY2025).
• Dividends took 59.7% of earnings and 71.2% of free cash flow in the latest fiscal year.
• Shares outstanding changed -5.3% from Sep 30, 2021 to Jun 30, 2026.

Rank among 1514 US companies

Market value at each year end

McDonald’s’s market value went from $101.08B at the end of 2016 to $187.98B on Nov 2, 2026, up 86%; since the end of 2025 it is down 14%.

Form 4 filings from 2025-10-27 to 2026-10-27 (25 read): 0 open-market purchases and 14 sales ($25.6M), 12 of them under pre-arranged 10b5-1 trading plans.

Large shareholders (13G filings)

ETFs with the most weight in MCD

1. Heavy reliance on independent franchisees. About 95% of restaurants were franchised at year-end 2025, so revenue largely tracks franchisee sales. McDonald's relies on owners it does not fully control to reinvest, follow standards and protect the brand.
2. Brand damage or food safety scares. Brand value rests partly on views of its food, sourcing and workplace practices. A food safety scare, bad publicity, social media criticism or a franchisee's actions could hurt sales, even when criticism is inaccurate.
3. Misjudging prices, value and changing tastes. McDonald's must balance value for customers with profit while keeping pace with shifting tastes, health trends and digital habits. Missteps in pricing, promotions or menus could push customers toward competitors.
4. Exposure to more than 100 countries. International Operated Markets supplied 50.7% of 2025 revenue. Weak foreign economies, currency swings, conflicts, social unrest or changing local rules can hurt sales and reduce the value of overseas earnings.
5. Higher labor costs and staff shortages. Restaurants need large crews: over two million people work in franchised McDonald's restaurants alone. Rising wages or trouble hiring can squeeze franchisee profits and margins at company-run restaurants.
6. Large debt load and credit risk. Total debt was about $39.9 billion against $822 million of cash as of June 30, 2026. A credit-rating cut or higher borrowing costs could reduce profits and financial flexibility.

• Sep 23, 2026 Investor presentation or announcement
• Aug 4, 2026 Executive or board change; Investor presentation or announcement
• Aug 4, 2026 Quarterly results released
• May 22, 2026 Shareholder vote results
• May 7, 2026 Quarterly results released
• Feb 11, 2026 Quarterly results released
• Feb 10, 2026 Executive or board change
• Nov 5, 2025 Quarterly results released

SEC filings show McDonald's raising its dividend every year from 2016 through 2025, at least nine straight increases. Dividends per share grew from $5.04 in 2020 to $7.17 in 2025, about 7.3% a year. In 2025 the dividend took 59.7% of earnings and 71.2% of free cash flow (cash from operations left after capital spending). The yield was 2.98% as of October 27, 2026. From 2021 through 2025, McDonald's paid $22.6 billion in dividends and $12.7 billion in buybacks. The share count fell 5.3% from September 2021 to June 2026.

In the 2008 financial crisis, the shares fell 21.4% at worst. Across the market's full slide, from October 2007 to March 2009, they ended down just 2.9%. They dropped 36.1% in the 2020 COVID crash and 17.2% in 2022, regaining their prior highs within about five months each time. Over the year to October 27, 2026, the price fell 17.4%. A single stock carries more risk than a diversified fund.