McDonald's vs Restaurant Brands: Revenue, Profit and Business Model
McDonald's reported $26.9B of revenue in FY2025 and $8.6B of net income. Restaurant Brands reported $9.4B of revenue in FY2025 and $1.1B of net income.
Latest financial snapshot
McDonald's
- Latest revenue
- $26.9B (FY2025)
- Net income
- $8.6B
- Net margin
- 31.9%
- Revenue growth
- +1.0% a year, FY2016–FY2025
Restaurant Brands
- Latest revenue
- $9.4B (FY2025)
- Net income
- $1.1B
- Net margin
- 11.4%
- Revenue growth
- +9.6% a year, FY2016–FY2025
Financial summary
McDonald's
McDonald's corporate revenue ($26.885 billion in 2025, up 3.7%) is a fraction of the roughly $139 billion that customers spend across the system, because franchised restaurant sales are not booked as company revenue. What the company does book is mostly franchise rent and royalties, which explains net income of $8.563 billion in 2025 and operating margins well above typical restaurant operators. In Q2 2026, revenue rose 4% (2% in constant currency) to about $7.1 billion, diluted EPS was $3.32 ($3.38 adjusted), and systemwide sales grew 5% to $37 billion. The company returns most free cash flow through dividends, which it has raised every year since 1976, and share buybacks.
Restaurant Brands
RBI reported FY2025 total revenues of $9.434 billion, up 12.2% from $8.406 billion in 2024, largely because the Carrols restaurants and Burger King China were consolidated for more of the year. Net income from continuing operations was $1.201 billion and total net income was $1.075 billion after a $126 million loss from discontinued operations. Adjusted operating income rose to $2.584 billion, and RBI returned about $1.1 billion to shareholders. In Q2 2026 revenue rose 4.5% to about $2.52 billion, system-wide sales grew 6.4% and comparable sales grew 3.8%.
Revenue and profit by year
McDonald's
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $26.9B | $8.6B | 31.9% | +3.7% | Source |
| FY2024 | $25.9B | $8.2B | 31.7% | +1.7% | Source |
| FY2023 | $25.5B | $8.5B | 33.2% | +10.0% | Source |
| FY2022 | $23.2B | $6.2B | 26.6% | -0.2% | Source |
| FY2021 | $23.2B | $7.5B | 32.5% | +20.9% | Source |
| FY2020 | $19.2B | $4.7B | 24.6% | -10.1% | Source |
| FY2019 | $21.4B | $6B | 28.2% | +0.5% | Source |
| FY2018 | $21.3B | $5.9B | 27.9% | -6.8% | Source |
| FY2017 | $22.8B | $5.2B | 22.8% | -7.3% | Source |
| FY2016 | $24.6B | $4.7B | 19.0% | — | Source |
Restaurant Brands
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $9.4B | $1.1B | 11.4% | +12.2% | Source |
| FY2024 | $8.4B | $1.4B | 17.2% | +19.7% | Source |
| FY2023 | $7B | $1.7B | 24.5% | +7.9% | Source |
| FY2022 | $6.5B | $1.5B | 22.8% | +13.3% | Source |
| FY2021 | $5.7B | $1.3B | 21.8% | +15.5% | Source |
| FY2020 | $5B | $750M | 15.1% | -11.3% | Source |
| FY2019 | $5.6B | $1.1B | 19.8% | +4.6% | Source |
| FY2018 | $5.4B | $1.1B | 21.4% | +17.1% | Source |
| FY2017 | $4.6B | $1.2B | 27.0% | +10.4% | Source |
| FY2016 | $4.1B | $956M | 23.1% | — | Source |
Where the revenue comes from
McDonald's
- Franchise rent and royalties~45%
Franchise rent and royalties
- Company-operated restaurants~25%
Company-operated restaurants
- Licensing and delivery economics~15%
Licensing and delivery economics
Restaurant Brands
- Franchise royaltiesCore
Ongoing fees based on franchisee restaurant sales.
- Advertising and other services
Meaningful
Advertising fund contributions, technology, and service-related revenues.
- Supply chain and property revenue
Meaningful
Distribution, manufacturing, rent, and property-related activity in certain markets.
- Company-operated restaurants
Elevated after Carrols
Restaurant sales from company-operated units, including acquired Carrols restaurants before refranchising.
Business model and strategy
McDonald's
How it makes money
About 95% of McDonald's restaurants are owned and operated by franchisees or developmental licensees. The corporation makes money in three main ways: (1) rent, because it owns or leases the land and buildings at many franchised sites and charges franchisees rent, often tied to a percentage of sales; (2) royalties, a percentage of each restaurant's monthly sales;
Growth strategy
McDonald's growth plan, branded Accelerating the Arches, rests on marketing, core menu (burgers, chicken, coffee), and the 3 D's: digital, delivery, and drive-thru. The company targets roughly 50,000 restaurants worldwide by the end of 2027, with China, other developmental licensed markets, and the U.S. contributing the largest number of openings.
Competitive advantage
McDonald's advantage is scale that rivals cannot easily copy: more than 45,000 restaurants, control of prime real estate at many franchised sites, a long-tenured franchisee base that funds most store capital, and a supply chain that buys beef, potatoes, chicken, and packaging at volumes few chains match.
Restaurant Brands
How it makes money
RBI makes most of its profit by franchising. Franchisees build and run the vast majority of its 33,000+ restaurants (over 90% of system restaurants are franchised) and pay RBI royalties and advertising contributions based on their sales.
Growth strategy
RBI's growth plan has three parts: lift Burger King U.S. sales through remodels, advertising and operations under the Reclaim the Flame program; refranchise the restaurants acquired with Carrols once they are remodeled; and accelerate International unit growth through master franchisees and joint ventures, including the CPE-led Burger King China venture that targets more than 4,000 restaurants by 2035.
Competitive advantage
RBI's advantage is brand scale plus a capital-light structure. Four established brands give it multiple growth paths across burgers, coffee, chicken and subs, while master franchise partners fund most international openings. Tim Hortons' dense Canadian network and its integrated supply chain also give RBI a cash-generating home market that few rivals can replicate.
Questions about McDonald's vs Restaurant Brands
Which company has higher revenue — McDonald's Corporation or Restaurant Brands International Inc.?
McDonald's Corporation reported $26.9B (FY2025), while Restaurant Brands International Inc. reported $9.4B (FY2025). By last reported revenue, McDonald's Corporation is the larger business, with Restaurant Brands International Inc. reporting a smaller revenue base.
What is the market cap of McDonald's Corporation vs Restaurant Brands International Inc.?
McDonald's Corporation's market capitalisation stands at $175.7B, while Restaurant Brands International Inc.'s is $35.0B. McDonald's Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Restaurant Brands International Inc..
Which is more financially efficient — McDonald's Corporation or Restaurant Brands International Inc.?
McDonald's Corporation generates $179k / employee in revenue per employee. A comparable figure for Restaurant Brands International Inc. requires matching employee and revenue data from the same reporting period.
How do McDonald's Corporation and Restaurant Brands International Inc. make money?
McDonald's Corporation and Restaurant Brands International Inc. generate revenue in fundamentally different ways. McDonald's Corporation: About 95% of McDonald's restaurants are owned and operated by franchisees or developmental licensees. Restaurant Brands International Inc.: RBI makes most of its profit by franchising.
Which company is valued higher relative to revenue — McDonald's Corporation or Restaurant Brands International Inc.?
On a price-to-sales (P/S) basis, McDonald's Corporation trades at 6.5x P/S and Restaurant Brands International Inc. at 3.7x P/S. McDonald's Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Restaurant Brands International Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is McDonald's Corporation bigger than Restaurant Brands International Inc.?
By last reported revenue, McDonald's Corporation ($26.9B (FY2025)) is the larger company compared to Restaurant Brands International Inc. ($9.4B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the McDonald's vs Restaurant Brands overview