McDonald's Corporation
Restaurants and franchisingFounded 1940- Updated June 2026
Reviewed by Swet Parvadiya
Last reviewed: June 2026
CorpDigest
McDonald's Corporation
Company History
Founded 1940 in Chicago, Illinois
Last reviewed: 2026-06-03 · By Swet Parvadiya
McDonald's Corporation was founded in 1940 in San Bernardino, California, by Richard and Maurice McDonald as a barbecue drive-in, then transformed into a franchise empire by Ray Kroc after 1955. Now headquartered in Chicago, Illinois, the company is led by CEO Chris Kempczinski (since November 2019). McDonald's operates in restaurants and franchising, running the world's largest restaurant system by systemwide sales (~$139 billion in FY2025) with over 40,000 locations across 100+ countries. Revenue model: McDonald's earns primarily from franchise rent (the company owns or leases restaurant sites and subleases to franchisees at a markup), royalties (typically 4-5% of gross sales), and fees — plus direct food sales from the ~5% of locations it operates directly. This real-estate-backed franchise model produces a 31.9% net margin because McDonald's collects rent and royalties without bearing direct food and labor costs. McDonald's reported $26.885 billion in FY2025 consolidated revenue (up 3.7% YoY) with net income of $8.563 billion. Q1 2026 showed continued momentum: revenue of $6.52 billion (up 9% YoY), global comparable sales +3.8%, and systemwide sales exceeding $34 billion. The loyalty program reached 210 million 90-day active users generating $37 billion in systemwide sales. Market capitalization is approximately $217 billion (NYSE: MCD). The company employs approximately 150,000 people directly, with the broader system employing an estimated 2 million+ globally. Competitive position: McDonald's advantage is its franchise real-estate model (landlord economics), global brand recognition (~95% awareness in developed markets), dedicated supply chain, drive-thru density (70% of US revenue), 210 million loyalty users, and the operational simplicity that allows consistent execution across 40,000+ locations. Strategic direction: Under the 'Accelerating the Arches' framework, McDonald's is focused on digital loyalty and personalization, core menu leadership, value and affordability, delivery expansion, restaurant modernization, chicken category growth, and selective unit expansion toward 50,000 total restaurants.
Maurice McDonald co-founded the original McDonald's restaurant with Richard McDonald in 1940 and helped design the operating philosophy that later made the brand expandable. His contribution was rooted in simplification: fewer menu items, more disciplined preparation, and a kitchen organized around repeatable steps rather than improvisation. In 1948, he and Richard rebuilt the business around the Speedee Service System, creating a faster and more predictable way to serve hamburgers, fries, and shakes. Maurice did not become the public face of the national company after Ray Kroc entered the business, but his influence is embedded in the system Kroc franchised. After Kroc bought the company in 1961, Maurice largely stepped away from the brand's national expansion. His lasting legacy is the idea that restaurant growth begins with operational clarity, not menu variety or personality-driven service.
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 million. Richard's legacy is visible whenever McDonald's prioritizes speed, consistency, menu focus, and process discipline over restaurant theatrics.
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 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.
McDonald'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.
McDonald'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.
McDonald'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.
McDonald'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.
McDonald'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.