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McDonald’s Corporation serves meals through a network in which approximately 95% of restaurants were franchised at June 30, 2026. A customer pays the independent restaurant operator; conventional franchisees then pay McDonald’s rent and royalties linked to sales, subject to minimum rent. At company-operated restaurants, McDonald’s receives meal revenue directly. Franchisees control local employment, marketing and pricing, while McDonald’s generally owns or leases conventional-franchise land and buildings. Occupancy and corporate costs remain part of its economics. A heavily franchised business therefore still needs a viable restaurant network and resources to support it.
U.S. comparable sales rose 0.8% in the second quarter of 2026. Management attributed growth mainly to higher average checks—customers spending more per visit—including favorable product mix, partly offset by fewer comparable guests. Larger purchases can support sales-linked rent and royalties without more visits. The question is how long this can last if guest counts keep weakening.
The source of profit growth also matters. Management attributed second-quarter 2026 growth excluding current and prior-year charges to sales-driven franchised margins and other , partly offset by higher administrative expenses in International Developmental Licensed Markets & Corporate. Group profit improvement therefore does not isolate the restaurant network's contribution.
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