How McDonald's Makes Money (2026)
McDonald's makes money mainly from Rents from franchised restaurants. Its FY2025 total revenue was $26,885 million ($26.9 billion), with Rents from franchised restaurants the biggest disclosed revenue line at $10,442 million ($10.4 billion) and 38.8% of total revenue (computed from the 10-K FY2025). Rent from franchisees is McDonald’s biggest revenue line, ahead of company-operated restaurant sales and royalties.
Last checked 2026-10-18 on the official pages.
Revenue breakdown
Amounts in millions of USD. Shares are computed from the filing.
| Revenue line | Value | % of total | Filing |
|---|---|---|---|
| Company-owned and operated restaurant sales | $9,690 million ($9.7 billion) | 36.0% | 10-K FY2025 ↗ |
| Rents from franchised restaurants | $10,442 million ($10.4 billion) | 38.8% | 10-K FY2025 ↗ |
| Royalties from franchised restaurants | $6,018 million ($6.0 billion) | 22.4% | 10-K FY2025 ↗ |
| Initial franchise fees | $88 million | 0.3% | 10-K FY2025 ↗ |
| Other revenues | $647 million | 2.4% | 10-K FY2025 ↗ |
| Total revenue | $26,885 million ($26.9 billion) | — | 10-K FY2025 ↗ |
The hidden model
Rent from franchisees is McDonald’s biggest revenue line, ahead of company-operated restaurant sales and royalties.
The annual franchise-revenue table reports rents, royalties and initial fees. verified
Revenues from franchised restaurants consisted of: In millions 2025 2024 2023 Rents $ 10,442 $ 10,017 $ 9,840 Royalties 6,018 5,606 5,531 Initial fees 88 92 66 Revenues from franchised restaurants $ 16,548 $ 15,715 $ 15,437
Franchised restaurants account for most restaurant margin dollars. verified
Franchised margins represented approximately 90% of restaurant margin dollars.
Business models
Watch the episode
How McDonald's Makes More From Rent Than Burgers 🍔
How McDonald's earns more from rent than from selling burgers in its own restaurants.
Premieres 20 Oct 2026, 17:00 CEST (Europe/Copenhagen) ↗
- McDonald's · Restaurants
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Frequently asked questions
How does McDonald's make money?
McDonald's makes money mainly from Rents from franchised restaurants. Its FY2025 total revenue was $26,885 million ($26.9 billion), with Rents from franchised restaurants the biggest disclosed revenue line at $10,442 million ($10.4 billion) and 38.8% of total revenue (computed from the 10-K FY2025). Rent from franchisees is McDonald’s biggest revenue line, ahead of company-operated restaurant sales and royalties.
What is McDonald's’ business model?
McDonald's’ business model is Franchise and Real Estate. Franchisees invest in local operations and pay for the brand and operating system. Where the franchisor controls property, rent can accompany sales-based royalties. Rent from franchisees is McDonald’s biggest revenue line, ahead of company-operated restaurant sales and royalties.
What is McDonald's’ hidden model?
Rent from franchisees is McDonald’s biggest revenue line, ahead of company-operated restaurant sales and royalties.