The burger joint could be a cash cow. We dug into the financials to find out just how much McDonald's franchises make a year.
How Much Do McDonald’s Restaurants Really Make Each Year?
Updated on Mar. 31, 2025
By now, we all know that those familiar golden arches mean there’s a quick and truly tasty meal ahead. So it’s no wonder that McDonald’s serves a supersized number of customers: more than 63 million a day in over 38,000 locations around the world. That’s a lot of burgers and french fries.
All that foot- and drive-thru traffic makes you wonder if the golden arches stand for golden earnings too. How much does McDonald’s make a year? Does the average McDonald’s rake in more cash than the Hamburglar swipes in all-beef patties?
To find out, we looked into McDonald’s annual revenue breakdown and its clever strategy for keeping the dinero rolling in. Read on for the details.
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How much does McDonald’s make a year?
McDonald’s global profits were $26 billion in 2024, with over $10 billion of that earned in the United States. Imagine the scale of that—it’s enough bank to buy every person on Earth a McCafe, with enough left over for some of us to have a second coffee.
The bottom line has surely come a long way since the first McDonald’s opened in the 1940s and hamburgers cost 15 cents. At that time, the company’s winning revenue was $200,000.
How much do McDonald’s franchise owners make annually?
If you didn’t know, here’s a key fact about McDonald’s: 95% of the fast-food outlets are owned by independent business owners (aka, franchisees), and they pull in, on average, $3,505,000 a year, though it varies from location to location.
Before you run out and attempt to snap up a McDonald’s franchise, you should know that opening your own Mickey D’s requires a ton of startup cash. The initial investment cost for a franchise is $1.5 to 2.6 million, according to Entrepreneur. You can’t take out a second mortgage on your house to foot that bill, either: McDonald’s requires franchisees to put down a minimum of $700,000 of nonborrowed personal resources, plus at least $100,000 in working capital.
To break it all down: You have to pony up 40% of the total investment cost when buying a new McDonald’s, or 25% of the cost if you’re buying an existing restaurant.
What is the McDonald’s revenue model, exactly?
McDonald’s makes most of its money through franchising. And a secret to its success is real estate investment: The company owns a lot of the restaurant buildings, making it a (well-paid) landlord. This model gives the iconic brand a steady, solid revenue stream without a whole lot of operational costs and risk.
In fact, 95% of its revenue comes from the restaurants its franchisees own, according to McDonald’s 2024 investor overview.
Of that big chunk of the (hot apple) pie, 50% of the money comes from conventional licenses—or ones in which the franchisee pays McDonald’s royalties and rent. Another 20% comes from developmental licenses, where the franchise owner pays the company only royalties (so McDonald’s does not own those buildings). Then there is 25% rolling in from royalties and equity proceeds from foreign-affiliated restaurants.
If you’re crunching the numbers along with us, you’ve already figured out that only 5% (!) of McDonald’s store-related profits comes from restaurants the company fully owns. Here’s a staggering stat: With its conventional franchise model, McDonald’s keeps around 82% of profit (by comparison, it keeps only 16% from its corporate-owned restaurants).
Is McDonald’s making more or less this year?
To get to the bottom of how much McDonald’s makes a year, you have to dig in to the company’s year-end statements. In 2024 in the United States, Mickey D’s eked out same-store growth of 0.2%, according to the company’s year-end disclosures. Globally, the same-store sales were slightly down (0.1%). But even in the U.S., there are signs sales are sliding. The fourth-quarter numbers for same-store sales fell 1.4%, the biggest drop in years.
What are the challenges to McDonald’s bottom line?
No doubt, fast-food industry earnings have been challenged in recent years, thanks to the slumping economy and the trend toward healthier eating. On top of that, the company has had to navigate a couple tough issues:
Foodborne illness
You may remember that in the fall of 2024, the company was at the center of an E. coli outbreak in the United States that was eventually traced to its onions. Across 14 states, 104 people got sick, 34 were hospitalized and one died, according to the Centers for Disease Control and Prevention (CDC). Thankfully, this outbreak is over.
Egg shortages
Across the quick-service restaurant industry, egg shortages and price hikes have dug into the bottom line. But McDonald’s has announced it won’t be adding an egg surcharge, unlike other fast-food brands, including Denny’s and Waffle House, which have added extra charges to make up for the challenges surrounding bird flu.
What can we expect from the future of McDonald’s?
Mickey D’s is a forward-looking company: In early 2025, McDonald’s CEO Chris Kempczinski took to his Instagram to share a video with three predictions about the quick-service restaurant industry. They are:
- More protein
- AI for a better customer experience
- And coming in at No. 3: “Sauce, sauces, sauces.”
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Sources:
- McDonald’s: “McDonald’s Reports Fourth Quarter and Full Year 2024 Results”
- McDonald’s: “McDonald’s History”
- History.com: “How McDonald’s Beat Its Early Competition and Became an Icon of Fast Food”
- Sharpsheets: “McDonald’s Franchise FDD, Profits & Costs (2025)”
- Entrepreneur: “McDonald’s”
- McDonald’s: “Franchising: The Financials”
- McDonald’s: “McDonald’s Corporation: 2023 Investor Update Fact Sheets”
- CDC: “E. coli Outbreak Linked to Onions Served at McDonald’s”
- Chris Kempczinski on Instagram: “McDonald’s CEO 2025 Industry Trendspotting”
