McDonald's vs Starbucks: Revenue, Profit and Business Model
McDonald's reported $26.9B of revenue in FY2025 and $8.6B of net income. Starbucks reported $37.2B of revenue in FY2026 and $1.9B 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
Starbucks
- Latest revenue
- $37.2B (FY2026)
- Net income
- $1.9B
- Net margin
- 5.0%
- Revenue growth
- +5.7% a year, FY2016–FY2026
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.
Starbucks
Starbucks generated $37.184 billion in FY2025 net revenue but only $1.856 billion in net earnings, down from $3.761 billion in FY2024, as Back to Starbucks labor investment, restructuring and 627 store closures weighed on margins. Fiscal 2026 marked a turn: Q3 global comparable sales rose 7.9%, the non-GAAP operating margin reached 14.4%, and management raised full-year adjusted EPS guidance to $2.55-$2.65. Reported revenue now looks smaller because China retail was deconsolidated in April 2026, so comparable sales and margins are the cleaner signals of recovery.
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 |
Starbucks
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $37.2B | $1.9B | 5.0% | +0.0% | |
| FY2025 | $37.2B | $1.9B | 5.0% | +2.8% | Source |
| FY2024 | $36.2B | $3.8B | 10.4% | +0.6% | Source |
| FY2023 | $36B | $4.1B | 11.5% | +11.6% | Source |
| FY2022 | $32.3B | $3.3B | 10.2% | +11.0% | Source |
| FY2021 | $29.1B | $4.2B | 14.5% | +23.6% | Source |
| FY2020 | $23.5B | $928.3M | 3.9% | -11.3% | Source |
| FY2019 | $26.5B | $3.6B | 13.6% | +7.2% | Source |
| FY2018 | $24.7B | $4.5B | 18.3% | +10.4% | Source |
| FY2017 | $22.4B | $2.9B | 12.9% | +5.0% | Source |
| FY2016 | $21.3B | $2.8B | 13.2% | — | 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
Starbucks
- Company-operated stores
The largest revenue source, accounting for the majority of FY2025 net revenues.
- Licensed stores
Royalties, branded supplies, and license-related revenue from partner-operated stores.
- Other revenue
Packaged coffee, ready-to-drink products, foodservice, and global coffee alliance economics.
- Digital and loyalty
Rewards and app usage support store traffic, frequency, and customer data advantages.
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.
Starbucks
How it makes money
Starbucks makes money mainly by selling handcrafted beverages, food, and packaged coffee in its own stores. In FY2025 company-operated stores produced the large majority of its $37.184 billion in net revenue. Licensed stores (airports, grocery stores, and partner-run international markets) pay royalties and buy coffee and supplies from Starbucks, giving a smaller but capital-light revenue stream.
Growth strategy
Under Brian Niccol, Starbucks' growth strategy is to win back visits before chasing new stores. The Back to Starbucks plan adds labor to peak hours, simplifies the menu, restores seating and condiment bars, and remodels ("uplifts") coffeehouses.
Competitive advantage
Starbucks' advantages are scale and habit. It operates more than 41,000 stores worldwide, owns a dense company-operated network of roughly 16,900 U.S. stores, and runs one of the largest restaurant loyalty programs through Starbucks Rewards and its mobile app. That combination gives it ordering data, high-traffic real estate, and purchasing power in green coffee that independent cafes and most chains cannot match.
Questions about McDonald's vs Starbucks
Which company has higher revenue — McDonald's Corporation or Starbucks Corporation?
McDonald's Corporation reported $26.9B (FY2025), while Starbucks Corporation reported $37.2B (FY2026). By last reported revenue, Starbucks Corporation is the larger business, with McDonald's Corporation reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of McDonald's Corporation vs Starbucks Corporation?
McDonald's Corporation's market capitalisation stands at $175.7B, while Starbucks Corporation's is $108.0B. McDonald's Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Starbucks Corporation.
Which is more financially efficient — McDonald's Corporation or Starbucks Corporation?
McDonald's Corporation generates $179k / employee in revenue per employee, while Starbucks Corporation generates $98k / employee. McDonald's Corporation shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do McDonald's Corporation and Starbucks Corporation make money?
McDonald's Corporation and Starbucks Corporation generate revenue in fundamentally different ways. McDonald's Corporation: About 95% of McDonald's restaurants are owned and operated by franchisees or developmental licensees. Starbucks Corporation: Starbucks makes money mainly by selling handcrafted beverages, food, and packaged coffee in its own stores.
Which company is valued higher relative to revenue — McDonald's Corporation or Starbucks Corporation?
On a price-to-sales (P/S) basis, McDonald's Corporation trades at 6.5x P/S and Starbucks Corporation at 2.9x P/S. McDonald's Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Starbucks Corporation. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is McDonald's Corporation bigger than Starbucks Corporation?
By last reported revenue, Starbucks Corporation ($37.2B (FY2026)) is the larger company compared to McDonald's Corporation ($26.9B (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 Starbucks overview