McDonald's
The world’s largest restaurant chain by sales, an American burger company that doubles as a giant commercial landlord.
45 figures on McDonald's, drawn from 10 Modern MBA case studies.
The figures
US dollars11
| Against its own chart | |||
|---|---|---|---|
| University endowments against the cash reserves of leading corporations, in billions of dollars | $0.8B | 10th of 10 · top $56.9B | Why college is so expensive in America |
| Average annual revenue per store, in millions | $3.9M | 1st of 8 · top $3.9M | Why fast food can't make a good burger |
| Average sales per store by chain, 2024, in millions | $3.88M | 1st of 6 · top $3.88M | Why fast food can't make a good burger |
| Average gross revenue per store by brand, 2000 | $1,393,388 | 2nd of 8 · top $1,600,000 | Why Crumbl won't last |
| Average annual payment in rent and royalties per franchisee, 2024 | $373,737 | 1st of 6 · top $373,737 | Why fast food can't make a good burger |
| Average net profit take-home per store after rent, supplies and labor | $150,000 | 3rd of 6 · top $205,000 | Why Crumbl won't last |
| Non-refundable upfront payment required to operate | $45,000 | 4th of 8 · top $50,000 | Why Crumbl won't last |
| Average price for a double cheeseburger and fries across Los Angeles | $12.19 | 9th of 9 · top $20.58 | Why fast food can't make a good burger |
| Average order size by chain and concept | $11 | 9th of 9 · top $30 | Why fast food can't make a good burger |
| Average check size against leading restaurant chains | $11.00 | 7th of 10 · top $26.50 | How much a taco truck actually makes |
| Price of a single cookie, 2024 | $1.19 | 8th of 8 · top $5.77 | Why Crumbl won't last |
Percentages19
| Against its own chart | |||
|---|---|---|---|
| Store-level operating margins around the time of founding | 21% | 1st of 6 · top 21% | Why Crumbl won't last |
| Restaurant-level operating margins across the industry in 2010 | 18.1% | 5th of 8 · top 26.6% | Why Chipotle got so much worse |
| Store-level operating margin by restaurant chain in 2022 | 16% | 6th of 13 · top 24% | Why Taco Bell got so expensive |
| Store-level operating margins, 2018 | 16% | 6th of 6 · top 30% | Why Crumbl won't last |
| Annual operating margins | 16% | 5th of 8 · top 40% | Why donut shops out-earn Krispy Kreme |
| Average store-level operating margin by chain and concept | 15% | 6th of 9 · top 25% | Why fast food can't make a good burger |
| US same-store sales growth · 2021 | 14% | 1st of 11 · top 14% | Why fast food can't make a good burger |
| Percentage of sales paid to the franchisor as royalties and marketing fees | 9.3% | 6th of 8 · top 12.5% | Why Crumbl won't last |
| US same-store sales growth · 2023 | 9% | 2nd of 11 · top 14% | Why fast food can't make a good burger |
| US same-store sales growth · 2022 | 6% | 3rd of 11 · top 14% | Why fast food can't make a good burger |
| Royalty on gross sales charged to franchisees | 5% | 6th of 8 · top 15% | How much a Texas BBQ joint actually makes |
| US same-store sales growth · 2019 | 5% | 4th of 11 · top 14% | Why fast food can't make a good burger |
| US same-store sales growth · 2017 | 4% | 5th of 11 · top 14% | Why fast food can't make a good burger |
| US same-store sales growth · 2018 | 3% | 6th of 11 · top 14% | Why fast food can't make a good burger |
| US same-store sales growth · 2015 | 1% | 7th of 11 · top 14% | Why fast food can't make a good burger |
| US same-store sales growth · 2020 | 0% | 8th of 11 · top 14% | Why fast food can't make a good burger |
| US same-store sales growth · 2024 | 0% | 8th of 11 · top 14% | Why fast food can't make a good burger |
| US same-store sales growth · 2014 | −2% | 10th of 11 · top 14% | Why fast food can't make a good burger |
| US same-store sales growth · 2016 | −2% | 10th of 11 · top 14% | Why fast food can't make a good burger |
Counts13
| Against its own chart | |||
|---|---|---|---|
| Store counts at home against everywhere else, 2022 · International | 26,831 | 1st of 6 · top 26,831 | Why Taco Bell got so expensive |
| US locations at each end of the window · 2017 | 14,027 | 2nd of 5 · top 25,908 | Why the Popeyes chicken sandwich was so good |
| Store counts at home against everywhere else, 2022 · United States | 13,444 | 1st of 6 · top 13,444 | Why Taco Bell got so expensive |
| US locations at each end of the window · 2022 | 13,444 | 2nd of 5 · top 20,567 | Why the Popeyes chicken sandwich was so good |
| Stores in China since the country opened to foreign business · 2023 | 5,000 | 1st of 9 · top 5,000 | Why Taco Bell got so expensive |
| Stores in China since the country opened to foreign business · 2018 | 2,700 | 2nd of 9 · top 5,000 | Why Taco Bell got so expensive |
| Stores in China since the country opened to foreign business · 2012 | 1,500 | 3rd of 9 · top 5,000 | Why Taco Bell got so expensive |
| Stores in China since the country opened to foreign business · 2010 | 1,300 | 4th of 9 · top 5,000 | Why Taco Bell got so expensive |
| Stores in China since the country opened to foreign business · 2008 | 800 | 5th of 9 · top 5,000 | Why Taco Bell got so expensive |
| Stores in China since the country opened to foreign business · 2006 | 700 | 6th of 9 · top 5,000 | Why Taco Bell got so expensive |
| Stores in China since the country opened to foreign business · 2002 | 460 | 7th of 9 · top 5,000 | Why Taco Bell got so expensive |
| Stores in China since the country opened to foreign business · 1997 | 252 | 8th of 9 · top 5,000 | Why Taco Bell got so expensive |
| Stores in China since the country opened to foreign business · 1987 | 0 | 9th of 9 · top 5,000 | Why Taco Bell got so expensive |
Durations1
| Against its own chart | |||
|---|---|---|---|
| Months a restaurant must be open before it counts as comparable | 13 mo | 6th of 11 · top 24 mo | Why the Popeyes chicken sandwich was so good |
Measures1
| Against its own chart | |||
|---|---|---|---|
| Average size of a domestic store, in square feet | 4,000 | 1st of 7 · top 4,000 | How Papa John’s buried Papa John |
Case studies covering McDonald's
Case study — ServicesWhy college is so expensive in AmericaHarvard holds $57B and charges $82,866 a year. Tuition isn't the business — the undergraduate is the seed, not the customer.16 min read
Case study — Food & beverageHow Papa John’s buried Papa JohnSix regimes in thirty years, four of them engineered by the founder. The filings contradict his version.13 min read
Case study — Food & beverageWhy Chipotle got so much worseA weekly staple became a byword for small portions and high prices in under ten years. Here is what broke.10 min read
Case study — Food & beverageWhy fast food can't make a good burgerMcDonald's makes more from rent than from food. That is why it can't fix the burger — and why four LA independents can.13 min read
Case study — Food & beverageHow much a Texas BBQ joint actually makesOne in three fail, brisket yields 40%, and the biggest variable in whether you survive is one magazine editor's palate.16 min read
Case study — Food & beverageWhy Taco Bell got so expensiveThe most profitable chain in fast food is being squeezed hardest, and the reason is KFC and Pizza Hut.11 min read
Case study — Food & beverageHow McDonald's recovered from its worst yearThe turnaround began when McDonald's stopped trying to be something else and started collecting rent instead.10 min read
Case study — Food & beverageWhy the Popeyes chicken sandwich was so goodThe sandwich came from a decade of R&D discipline its new owners inherited and did not build. That is the problem.14 min read
Case study — Food & beverageWhy donut shops out-earn Krispy KremeThe average Krispy Kreme grosses $119K a year. A 650 sq ft Portland shop grosses $600K at a 40% margin.12 min read
Case study — Food & beverageHow much a taco truck actually makesTwo sisters run fifteen unbranded taco stands in LA grossing $7.58M a year. Almost nobody knows the business exists.11 min read
Case study — Food & beverageWhy Crumbl won't lastMrs. Fields had its decade too. Crumbl store margins fell from 30% to 10% while corporate went from $4M to $152M.15 min read