The world's largest fast-food chain. McDonald's went public in 1965. It operates roughly 13,500 stores in America and some 30,000 abroad, in over 100 countries. Around 95% of American outlets are run by franchisees; the share is similar overseas. Headquarters are in Chicago. Chris Kempczinski is the chief executive.
McDonald's revenue derives primarily from the licence fees, royalties and rents that franchise operators hand over to headquarters. Because franchisees bear the cost of ingredients and labour, tariffs and cost inflation hit them before they hurt the brand owner. JPMorgan Chase calculates that it would take cost inflation of 7.5% for McDonald's to feel any hit to net profit. Franchise operators are permitted to set their own prices, which explains why a Big Mac costs $4.36 in Austin but $7.06 in Seattle. The first Big Mac cost 45 cents in 1967.
McDonald's earns roughly 60% of its revenues in currencies other than the dollar, giving it a natural hedge against a weaker greenback.
A quarter of a century ago overly rapid expansion in the number of outlets and of products on offer made it harder for staff to keep up, hurting reliability. A price war with Burger King turned indecent, and advertising grew stale. Between late 1999 and early 2003 the company shed two-thirds of its market value.
Post-pandemic inflation pushed average McDonald's prices up by 40% from 2019. In July 2024 the company launched a $5 meal deal. In January 2025 it bundled this with a "buy one, add one for $1" offer and digital-only promotions in its app, called the McValue menu, fronted by John Cena, a wrestler turned actor.
McDonald's had 7,000 outlets in China in 2025 and plans to add 3,000 in the following three years, many in smaller cities and towns. Its Chinese operations are mostly owned by Citic Capital, a state-backed investor. Around 60% of McDonald's outlets in China are within a ten-minute cycle ride of another McDonald's (UBS). The push into rural areas brings the company up against cheaper Chinese fast-food brands such as Tastien and Wallace.
I am more bored than you could ever possibly be. Go back to work.