McDonald’s Corporation (MCD) - Stock report

McDonald's Corporation is mainly a franchisor. Most of its roughly 46,028 restaurants worldwide are run by independent operators, and those operators pay McDonald's rent and royalties, which are fees tied to how much each restaurant sells. Customers buy everyday meals and drinks, while the operators cover most day-to-day restaurant costs. McDonald's also runs a small number of restaurants itself, where it keeps the full sales but carries the full costs. Because about 95% of restaurants were franchised at June 30, 2026, McDonald's collects a steady stream of fees while carrying far less direct restaurant expense than a chain that runs every location on its own.

McDonald's is running an internal redesign it calls Accelerating the Organization. It expects roughly $250 million of restructuring charges in 2026, mostly professional-services costs, with the work due to finish during 2027; $98 million landed in the first six months and $795 million has been spent since 2023. These are cash costs today, so the near-term question is whether the business keeps growing profit and cash while paying for the overhaul.

At June 30, 2026 McDonald's held $822 million of cash against $39.9 billion of long-term debt. The franchise model currently generates substantial cash, so the debt looks manageable, but weaker restaurant sales and cash generation over several quarters would leave less room for dividends, repurchases, and other uses of cash.