McdonaldsMCD

01McDonald's structural position as landlord to 95% franchised operators creates a rent-plus-royalty toll on systemwide sales that converts volatile restaurant economics into stable, high-margin fee income. The real estate lock-in—20-year franchise terms tied to company-controlled sites—makes franchisee switching prohibitively costly and secures recurring cash flow regardless of near-term traffic fluctuations.

02Systemwide sales to loyalty members are measured across 70 markets with loyalty programs The Company continues to expand and refine its delivery initiatives, including through integrating delivery and mobile ordering Restaurant > NEXT is intended to improve restaurant efficiency with AI-enabled operating systems that reduce complexity and enable restaurant teams to serve customers great tasting food more effectively The Company's Other revenues are comprised of fees paid by franchisees to recover a portion of costs incurred by the Company for various technology and digital platforms

03The franchise-landlord model converts systemwide sales into high free-cash-flow conversion, funding both a prioritized dividend and consistent buybacks without incremental leverage. This disciplined capital return framework compounds per-share value even when unit or comparable-sales growth is modest.

04The developmental-license structure shifts nearly 70% of new-unit capital to third-party licensees while McDonald's collects incremental royalties from day one. This asset-light expansion path accelerates unit growth toward the 50,000-unit target without proportionately burdening McDonald's balance sheet, amplifying returns on invested capital.