McDonald's (MCD)

The business is built primarily around franchising. Most McDonald’s restaurants are owned and operated by independent franchisees, while the company earns revenue through rent, royalties, and fees tied to restaurant sales. This model gives McDonald’s exposure to global restaurant demand while limiting the capital intensity of running every location itself. It also operates a smaller number of company-owned restaurants, which help test new formats, menu changes, technology, and operating practices.

McDonald’s competes on speed, value, brand familiarity, and consistency, but it also invests heavily in digital ordering, loyalty programmes, delivery partnerships, drive-thru efficiency, and restaurant modernisation. The United States remains its largest single market, while major international operated and licensed markets provide significant additional scale. Its global footprint allows the company to benefit from local franchise expertise while maintaining a standardised brand identity.

For investors, McDonald’s is often viewed as a mature, cash-generative consumer company with defensive qualities, though it remains exposed to food costs, wage inflation, currency movements, consumer spending trends, and changing dietary preferences.