McDonald’s Corp. (NYSE:MCD)

Overall revenues exhibited a generally positive trend over the five-year period, though with some fluctuations. While a slight decrease was observed between 2021 and 2022, subsequent years demonstrate consistent growth. The composition of revenues reveals a reliance on franchised restaurant income, alongside a significant contribution from company-operated locations and increasing contributions from other revenue streams.

Revenues from Franchised Restaurants

Revenues from franchised restaurants consistently increased from US$13,085 million in 2021 to US$16,548 million in 2025. This represents a cumulative growth of approximately 26.4% over the period. The growth rate appears to be accelerating, with larger absolute increases observed in later years. This suggests a strengthening franchise network and potentially increased royalty and rent collection efficiency.

Sales by Company-operated Restaurants

Sales from company-operated restaurants experienced a decrease from US$9,787 million in 2021 to US$8,748 million in 2022. However, these sales recovered to US$9,742 million in 2023 and remained relatively stable at US$9,782 million in 2024 before a slight decrease to US$9,690 million in 2025. This indicates a period of initial disruption followed by stabilization and a minor decline at the end of the period. The relative stability suggests a mature market for company-operated locations.

Rents and Royalties

Both rents and royalties demonstrated consistent growth throughout the period. Rents increased from US$8,381 million in 2021 to US$10,442 million in 2025, representing a growth of approximately 24.6%. Royalties increased from US$4,645 million to US$6,018 million, a growth of roughly 29.7%. The parallel growth of these two revenue streams reinforces the positive trend in the franchise network.

Initial Fees and Other Revenues

Initial fees were relatively small in comparison to other revenue streams, exhibiting some volatility. While fluctuating, they remained generally around the US$60-92 million range. Other revenues showed a more significant increase, growing from US$350 million in 2021 to US$647 million in 2025. This represents a substantial increase of approximately 84.9%, indicating a diversification of revenue sources and potentially successful new initiatives.

Total Revenues

Total revenues decreased slightly from US$23,223 million in 2021 to US$23,183 million in 2022. However, a clear upward trend is then observed, with revenues reaching US$26,885 million in 2025. This represents a cumulative growth of approximately 15.7% over the five-year period. The growth in total revenues is primarily driven by the consistent expansion of revenues from franchised restaurants and the increasing contribution from other revenue sources.