McDonald’s Corporation is one of the world’s largest restaurant chains, operating in the Services sector and classified within the Restaurant industry. It was founded by Ray Kroc.
The company operates through both company-owned and franchised restaurants, with approximately 93% of its locations run by independent franchisees across more than 100 countries.
McDonald’s core business model is based on a franchise system that allows franchisees to manage their operations autonomously while benefiting from the company’s operational support and financial resources.
Under traditional franchise agreements, the company typically owns the land and buildings or secures long-term leases.
Franchisees, in turn, are responsible for investments in equipment, signage, furniture, and interior design.
This model enables McDonald’s to maintain high operational performance, with franchise agreements that generally span 20 years.
The company’s revenue streams are driven by rent payments, royalties (a percentage of sales), and initial franchise fees.
This structure provides a consistent cash flow, contributing to the company’s financial stability.
McDonald’s most popular products include hamburgers, cheeseburgers, the iconic Big Mac, chicken sandwiches, Chicken McNuggets, French fries, salads, ice cream, and soft drinks.
History and Founding of McDonald’s Corporation
The story of McDonald’s began in 1954 when Ray Kroc, a salesman for Multimixer milkshake machines, met brothers Richard (Dick) and Maurice (Mac) McDonald at their restaurant in San Bernardino, California.
Impressed by the efficiency of their operation — which offered a streamlined menu featuring hamburgers, French fries, and beverages — Kroc recognized a major expansion opportunity.
In 1955, Kroc founded McDonald’s System, Inc., the predecessor to the modern McDonald’s Corporation, and in 1961, he purchased the exclusive rights to the brand and its operating system.
Kroc’s vision was to build a network of high-quality restaurants offering standardized preparation methods to ensure the same taste and customer experience everywhere.
Over the decades, McDonald’s expanded globally, adapting its menu to local cultures and solidifying its position as the world leader in the fast-food industry.
Key milestones include the opening of its first international restaurant in Canada in 1967 and subsequent entries into markets such as China and Russia.
The company’s rapid growth was fueled by innovative marketing campaigns and the expansion of its franchise model.
In recent years, McDonald’s has advanced in technology and sustainability through investments in digital self-service kiosks, delivery apps, and sustainable packaging initiatives.
The company has also focused on menu innovation, introducing plant-based and healthier food options.
Today, McDonald’s Corporation remains the global leader in the fast-food sector, maintaining a strategy of sustainable growth through innovation, franchise expansion, and adaptation to evolving consumer trends.
Additional Information
The Company McDonald's Corporation (United States), is listed on NYSE with a market cap of $ 219.24 Billions, having an equity of $ -2.16 Billions.
With a total of 205.000 employees, the company is listed in the sector of Services and categorized in industry of Restaurants.
In the last 12 months the Company had a revenue of $ 26.26 Billions, which generated a profit in the amount of $ 8.42 Billions.
As for its main indicators, the Company has a P/E ratio of 26.05, a P/BV ratio of -101.36 and in the last 12 months the dividend yield of MCD was at 2.30%.
The Company is traded internationally through the ticker MCD.