MCD.US: Franchise model & SSS resilience

Snapshot

Price

USD 295

Mkt cap

USD 210.0B

Company revenue

USD 26.5B

Div yield

0.023

Thesis

McDonald's is the franchise-system benchmark: capital-light royalties, SSS/traffic/digital as KPIs.

Business

Model: franchise royalties/rent + company stores. Flagships: core menu/value; McCafé; loyalty. Edge: brand+real estate+supply. Strategy: value, throughput, intl.

Value chain

Downstream consumers; upstream ag/packaging; franchisees midstream. Risks: food inflation; labor.

Valuation

Bond-like equity: yield + buybacks vs SSS.

Financial trend (~24 months)

Illustrative 8Q with YoY/QoQ:

Revenue · last 8Q

Interactive chart available in the reader.

Gross margin · last 8Q

Interactive chart available in the reader.

Operations

Global SSS, US traffic, franchisee cash flow.

Key financials

Key financials

Item	Value	YoY	Note
Global SSS	Low-single-digit	—	Traffic vs price
Company rev	~$26.5B	+2%	Franchise heavy
Franchise margin	High	—	Royalty model
CapEx / returns	Disciplined	—	Buybacks+div

Competition

Vs SBUX and YUM; lightest model, widest brand.

Peer map

Peer map

Company	Share/role	Margin	Strength	Weakness
McDonald's (self)	QSR leader	High franchise	Brand+franchise	Traffic cycles
Starbucks	Coffee QSR	Mid	Loyalty	China/labor
Yum! Brands	Multi-brand	High	Franchise	Less scale than MCD

Management

Management (24m)

Management (24m)

Role	Name	Since	24m change
CEO	Chris Kempczinski	2019	No change
CFO	Ian Borden	2023	No material change
Chair	Board Chair	—	See proxy

Stability: steady.

Outlook

Track SSS guide, value menu, buybacks/dividends.

Scenarios

Risks