McDonald's Corporation
Company History
McDonald's History: Founding, Growth & Key Milestones
Founded 1940 in San Bernardino, United States
When was McDonald's founded?
McDonald's was founded in 1940 in San Bernardino, United States by Maurice James McDonald, Richard James McDonald and Ray Kroc, making it 86 years old.
- Founded
- 1940
- Founding place
- San Bernardino, United States
- Founders
- Maurice James McDonald, Richard James McDonald and Ray Kroc
- Headquarters today
- Chicago, Illinois, United States
- Milestones documented
- 12 (1940–2025)
- Current CEO
- Chris Kempczinski
- Acquisitions
- 5
| Year | Event |
|---|---|
| 1940 | First McDonald's Opens in San Bernardino |
| 1948 | Speedee Service System Introduced |
| 1955 | Ray Kroc Opens Des Plaines Restaurant |
| 1961 | Hamburger University Opens |
| 1961 | Kroc Buys the Brothers' Company |
| 1968 | Big Mac Added to National Menu |
| 1975 | Egg McMuffin Builds Breakfast |
| 2003 | I'm Lovin' It Campaign Launches |
| 2017 | Global McDelivery Day with UberEATS |
| 2019 | Dynamic Yield Acquisition |
| 2024 | Quarter Pounder E. Coli Outbreak |
| 2025 | $26.9B FY2025 Revenue |
- Where was McDonald's founded?
- McDonald's was founded in San Bernardino, United States in 1940. wikidata.org
- Who founded McDonald's?
- McDonald's was founded by Maurice James McDonald, Richard James McDonald and Ray Kroc.
- When did McDonald's start?
- McDonald's was founded in 1940.
- How old is McDonald's?
- McDonald's is 86 years old as of 2026.
Founding Story
In 1940, brothers Richard and Maurice McDonald opened a barbecue drive-in in San Bernardino, California. In 1948 they rebuilt it around a short menu, paper packaging, and an assembly-line kitchen they called the Speedee Service System. Milkshake-mixer salesman Ray Kroc visited in 1954, became their franchising agent, opened his first restaurant in Des Plaines, Illinois, in 1955, and bought the brothers out in 1961 for $2.7 million. With financial chief Harry Sonneborn's real estate model, Kroc turned the format into a global franchise system.
Founders
Maurice James McDonald
Maurice "Mac" McDonald co-founded McDonald's with his brother Richard in 1940, opening a barbecue drive-in in San Bernardino, California. Frustrated by slow carhop service, broken dishes, and a sprawling menu, the brothers closed the restaurant in 1948 and reopened it around the Speedee Service System: a short menu of burgers, fries, and shakes, paper packaging, and an assembly-line kitchen. Maurice focused on cost, labor, and workflow discipline. In 1954 Ray Kroc visited, became the brothers' national franchising agent, and in 1961 bought them out for $2.7 million. The brothers kept their original restaurant, which had to drop the McDonald's name, but the operating system they designed became the template for modern fast food. (Exact birth year remains publicly undisclosed).
Richard James McDonald
Richard McDonald co-founded McDonald's and played a leading role in the 1948 redesign that turned a local drive-in into the template for modern fast food. He helped develop the Speedee Service System, which reduced the menu, removed carhops, and used assembly-line routines to serve food quickly and consistently. Richard's contribution was partly architectural: he helped think through how the kitchen should be arranged so that work could move in sequence. After Ray Kroc began franchising the concept in 1955, Richard and Maurice remained the originators of the operating model even as Kroc became the expansion figure. In 1961, the brothers sold the company to Kroc for $2.7 million. Richard's legacy is visible whenever McDonald's prioritizes speed, consistency, menu focus, and process discipline over restaurant theatrics. (Exact birth year remains publicly undisclosed).
Ray Kroc
Ray Kroc opened his first McDonald's franchise in Des Plaines, Illinois in 1955 and built the franchising organization that made the brand famous far beyond California. He pushed strict operating rules, supplier consistency, operator training, and quality control because he believed customers should receive the same experience regardless of location. Kroc bought the company from Richard and Maurice McDonald in 1961 for $2.7 million, gaining control of the name and system. As CEO from 1967 to 1973 and a continuing influence afterward, he helped create the expansion culture that defined McDonald's for decades. Kroc's legacy is complicated because he did not invent the original system, but he scaled it with intensity and discipline. His lasting influence is the belief that a restaurant can be managed like a repeatable business format, not merely a place that serves food. Ray Kroc was born in 1902 in Oak Park.
Key Milestones
First McDonald's Opens in San Bernardino
Richard and Maurice McDonald opened the first McDonald's restaurant on May 15, 1940 in San Bernardino, California. The original drive-in gave the brothers a live operating laboratory before they stripped the model down to a faster, lower-cost menu.
Source: en.wikipedia.orgSpeedee Service System Introduced
The brothers simplified operations in 1948 around 15-cent hamburgers, shakes, and fries. The shift mattered because it turned restaurant service into a repeatable production process built on a limited menu, speed, and consistency.Speedee Service System Introduced is documented through the 1948 source and then interpreted in relation to McDonald's Corporation's business model.
Source: en.wikipedia.orgRay Kroc Opens Des Plaines Restaurant
Ray Kroc opened his first McDonald's in Des Plaines, Illinois on April 15, 1955 after becoming the brothers' franchise agent. That restaurant became the base for converting a California operating idea into a national franchise system.
Source: en.wikipedia.orgHamburger University Opens
Hamburger University opened in the basement of an Elk Grove Village, Illinois restaurant in 1961. The training program mattered because it formalized the standards and operating routines that franchisees needed to deliver a consistent experience.
Source: en.wikipedia.orgKroc Buys the Brothers' Company
McDonald's says it acquired the rights to the brothers' company in 1961 for $2.7 million. The deal gave Kroc control of the name and system, setting up the real estate-backed franchise model that later defined parent-company economics.
Source: en.wikipedia.orgBig Mac Added to National Menu
The Big Mac, developed by owner-operator Jim Delligatti of Pittsburgh, was added to the national menu in 1968. It became a durable core product and a recognizable signal of the company's ability to turn franchisee ideas into systemwide menu platforms.
Source: en.wikipedia.orgEgg McMuffin Builds Breakfast
The Egg McMuffin, created by owner-operator Herb Peterson of Santa Barbara, California, was added to the national menu in 1975. It helped turn breakfast into a major daypart rather than leaving the restaurants dependent on lunch and dinner traffic.
Source: en.wikipedia.orgI'm Lovin' It Campaign Launches
McDonald's launched its global "I'm lovin' it" marketing campaign in 2003, its first worldwide brand campaign.
Source: en.wikipedia.orgGlobal McDelivery Day with UberEATS
McDonald's marked Global McDelivery Day in 2017 to support the broader launch of McDelivery with UberEATS. Delivery expanded restaurant reach beyond the counter and drive-thru, while also adding packaging, marketplace-fee, and kitchen-throughput challenges.
Source: en.wikipedia.orgDynamic Yield Acquisition
McDonald's agreed to acquire Dynamic Yield in 2019 to personalize drive-thru menu boards, kiosks, and app experiences using signals such as time of day, weather, restaurant traffic, and trending items. The deal mattered because it made digital decisioning part of restaurant operations, even after the platform was later sold to Mastercard.
Source: en.wikipedia.orgQuarter Pounder E. Coli Outbreak
U.S. Public health agencies linked a 2024 E. Coli outbreak to slivered onions served on McDonald's Quarter Pounders in affected states. The episode mattered because it showed how one ingredient and supplier issue can create national trust and operations risk for a scaled restaurant system. Quarter Pounder E.
Source: en.wikipedia.org$26.9B FY2025 Revenue
McDonald's reported $26.885 billion in FY2025 revenue and $8.563 billion in net income. The result showed how a system with about 95% franchised restaurants can produce high parent-company earnings from rent, royalties, fees, and selective company-operated sales.
Source: en.wikipedia.orgMajor Acquisitions
Dynamic Yield
2019McDonald's acquired Dynamic Yield to enhance digital personalization across drive-thru, kiosk, and ordering experiences. The goal was to use data such as time, weather, menu context, and customer behavior to recommend items and raise average order value. The deal also signaled that McDonald's wanted technology to become a core part of restaurant operations rather than a back-office tool.
Apprente
2019McDonald's acquired Apprente to advance voice-based ordering technology for the drive-thru. The startup specialized in conversational AI that could process spoken orders, accents, and menu variations. McDonald's wanted to reduce drive-thru friction and eventually improve labor productivity.
Boston Market
2000McDonald's acquired Boston Market out of bankruptcy to explore growth beyond its core hamburger platform. The rotisserie-chicken chain offered a different meal occasion and a more dinner-oriented format. Management hoped the asset could broaden McDonald's exposure to adjacent restaurant categories.
Donatos Pizza
1999McDonald's acquired Donatos Pizza as part of a late-1990s push into adjacent restaurant concepts. The company was looking for new growth beyond burgers and believed pizza could offer an expandable category with strong consumer demand. Donatos also gave McDonald's exposure to a different kitchen format and franchise opportunity.
Chipotle Mexican Grill stake
1998McDonald's invested in Chipotle Mexican Grill when the burrito chain was still small, eventually becoming its majority owner. The purpose was to participate in fast-casual growth and learn from a concept centered on customization, fresher positioning, and a different service line from traditional fast food.
Keep researching McDonald's
McDonald's Company History FAQ
What were the most significant milestones in McDonald's early history from 1940 to 1965?
Key founding milestones include opening the San Bernardino drive-in in 1940, introducing the Speedee Service System in 1948, Ray Kroc joining in 1954 and incorporating the company in 1955, establishing Hamburger University and buying out the McDonald brothers in 1961, introducing Ronald McDonald in 1963, and going public on the New York Stock Exchange in 1965.
When did McDonald's begin its international expansion outside the United States?
McDonald's launched its international expansion in 1967 by opening restaurants in Richmond, British Columbia (Canada) and San Juan, Puerto Rico. Expansion accelerated across Europe, Asia, and Latin America during the 1970s, including landmark openings in Japan, Germany, and the United Kingdom in 1971 to 1974.
What was the significance of McDonald's opening in Moscow in 1990?
On January 31, 1990, McDonald's opened its first Soviet restaurant in Moscow's Pushkin Square after 14 years of diplomatic and agricultural negotiations led by George Cohon of McDonald's Canada. Over 30,000 Soviet citizens waited in line for hours on opening day, symbolizing the thawing of the Cold War and the globalization of Western commercial enterprise.
How did McDonald's handle the fast-food crisis of 2002 to 2003?
In late 2002, over-expansion, declining restaurant cleanliness, and fierce price wars led McDonald's to post its first quarterly net loss since going public. The board appointed Jim Cantalupo and Charlie Bell, who enacted the 'Plan to Win,' halting new construction, upgrading existing stores, and refocusing the company on food quality and customer experience.
When did McDonald's introduce the Happy Meal and how did it change family dining?
The Happy Meal was created in 1977 by St. Louis regional advertising manager Dick Brams and officially rolled out nationally in 1979 with a circus-wagon-themed box containing a burger, fries, cookies, a drink, and a toy. It transformed McDonald's into the premier family dining destination and made the company one of the largest toy distributors globally.
How did the launch of All-Day Breakfast in 2015 impact McDonald's US business?
Introduced under then-CEO Steve Easterbrook in October 2015 in response to years of customer demand, All-Day Breakfast reversed two consecutive years of declining US same-store sales, driving a 5.7% quarterly sales surge and bringing millions of lapsed diners back to McDonald's restaurants.
How did McDonald's adapt its operations during the COVID-19 pandemic in 2020?
McDonald's capitalized on its pre-existing drive-thru infrastructure, mobile ordering app, and delivery partnerships to maintain operations while dining rooms closed. Drive-thru and digital channels surged to represent nearly 90% of total sales, enabling McDonald's to recover revenue far faster than sit-down casual restaurant competitors.
What is the 'Best Burger' initiative deployed across McDonald's restaurants?
Rolled out globally through 2023 to 2026, the 'Best Burger' initiative represents McDonald's largest culinary overhaul to its core burger line in decades. It involves searing patties in smaller batches of six, caramelizing onions directly on the grill, softening and toasting brioche-style buns, and serving hotter melted cheese to elevate flavor and texture.
How did McDonald's start?
McDonald's was founded in 1940 by brothers Richard and Maurice McDonald in San Bernardino, California. In 1948, they revolutionized human dining by inventing the "Speedee Service System"—applying Henry Ford's massive assembly-line logic to hamburgers. However, the modern global empire was built by Ray Kroc, a highly aggressive milkshake machine salesman who partnered with the brothers in 1955, eventually buying them out in a historically ruthless corporate takeover.
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