McDonald’s Corporation

McDonald's owns, operates, and franchises quick-service restaurants serving hamburgers, chicken sandwiches, fries, breakfast items, and beverages in over 100 countries [Yahoo Finance]. The company earns money two ways: it runs some restaurants directly, and it collects royalty fees and rent from independent franchise owners who operate most locations under the McDonald's brand [Yahoo Finance].

McDonald's Corporation operates over 40,000 restaurants worldwide under a franchise model, serving burgers, chicken, fries, and beverages [Yahoo Finance]. The company reported strong Q1 2026 results with U.S. same-store sales up 3.9%, driven by value meals under $3 and aggressive discounting to attract budget-conscious customers [Yahoo Finance]. However, management warns that low-income consumers are pulling back on fast-food spending due to inflation pressures, and company-owned restaurant margins remain under strain from higher labor costs [Yahoo Finance].

McDonald's is profitable with strong cash generation, but carries significant debt and faces margin pressure at company-owned stores.