MCD · 10-Q · 2026Q2 · Full report

Franchisee Economics

MCDONALDS CORP · 2026-08-07 · Importance 17 · Surprise 24

McDonald’s heavily franchised model depends on franchisee sales growth, operational execution and willingness to invest in major initiatives. Franchisees may face constrained access to financing, higher interest rates and business risks that impair their ability to fund technology, value and promotional programs, restaurant development and capital-intensive reinvestment. Weak franchisee performance or inconsistent execution could reduce growth, harm the brand and adversely affect system results.

Key facts

• Of the 46,028 McDonald's restaurants at June 30, 2026, approximately 95% were franchised. source
• Our restaurant margins arise from two sources: fees from franchised restaurants (e.g., rent and royalties based on a percentage of sales) and, to a lesser degree, sales from Company-owned and operated restaurants. source