McDonald's' strategy emphasizes its competitive strengths through a "MCD" framework: relevant marketing, core menu development, and the four Ds: digital, drive-thru, delivery, and development.
With a modernized restaurant real estate footprint after $9 billion in remodeling investments, McDonald’s is well positioned to take advantage of evolving digital ordering habits.
Bears
Franchise economics could deteriorate if commodity and wage inflation continue to outpace sales growth, particularly in markets like California. This could blunt development appetite for new store growth.
McDonald’s is the largest restaurant owner-operator in the world, with 2023 system sales of $130 billion across nearly than 42,000 stores and 115 markets. McDonald’s pioneered the franchise model, building its footprint through partnerships with independent restaurant franchisees and master franchise partners around the globe. The firm earns roughly 60% of its revenue from franchise royalty fees and lease payments, with most of the remainder coming from company-operated stores across its three core segments: the United States, internationally operated markets, and international developmental/licensed markets.