McDonalds
Food & Beverage · Quick-Service Restaurants
- Avg unit volume
- $4.0M
- Royalty
- 5.0%
of weekly Net Sales
About McDonalds
McDonald's is a renowned brand that is passionate about providing delicious food options while consistently improving their quality. From their iconic Happy Meal® to their freshly cooked Quarter Pounder® burgers made with 100% fresh beef, McDonald's focuses on customer satisfaction and commitment to food excellence. They are dedicated to enhancing their menu and offering more balanced choices, prioritizing the use of high-quality ingredients. McDonald's nutrition calculator enables customers to access detailed nutritional information for their favorite meals, ensuring informed choices. With a team of chefs, dieticians, and suppliers, McDonald's food experts are deeply committed to ensuring the utmost quality and taste. McDonald's also offers a variety of options to cater to diverse preferences, ensuring everyone can find something they love. As a brand, McDonald's constantly evolves to provide what matters most to their valued customers.
Key terms
- Franchise fee
$45k
- Prorated initial franchise fee for shorter real estate tenure/terms
If real estate tenure or mutually agreed term is 10 years or less, the initial franchise fee is prorated based on the term.
- Credit on rebuild/relocate
Rebuild or relocate pays initial franchise fee less a credit for a portion of the previously paid initial fee at the earlier of after year 7 or end of previous term.
- BFL option
Franchisees who have an option to purchase assets under a BFL pay the $45,000 initial franchise fee when they exercise the option.
- Local advertising
4.0% of Net Sales
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing).
Growth
- Total locations13062
Franchised units open at year-end
- New openings221
Gross new units opened during the calendar year
- 1-year unit growth rate1.4%
Net unit growth versus prior year
- 3-year unit CAGR1.1%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio4.8×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$4.1M
Domestic traditional franchised McDonald’s restaurants open at least 1 year (2025)
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$2.1M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open—
Midpoint of average time from agreement to opening
- Royalty rate—
Percent of net sales paid to the franchisor
- Sales-to-investment ratio1.9×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Location footprint
Showing 464 of 966 mapped locations
Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.