McDonald’s is organised as a geographic divisional structure on top of a franchise system: a global corporate team under Chairman and CEO Chris Kempczinski, and three geographic units, the U.S., International Operated Markets and International Developmental Licensed Markets & Corporate, each with its own president. Most restaurants are not run by McDonald’s itself: of 45,356 restaurants at year-end 2025, about 95% were franchised. Global functions such as finance, marketing, technology, people and legal sit at corporate level and serve all three units.
The 10-K lists executive officers including Chris Kempczinski, President and CEO since November 2019 and Chairman since May 2024,, Global CFO Ian Borden, Global Chief Marketing Officer Morgan Flatley, Global Chief Information Officer Brian Rice, Global Chief People Officer Tiffanie Boyd and Global Chief Legal Officer Desiree Ralls-Morrison.
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Three geographic units
The U.S. is the largest market. International Operated Markets include Australia, Canada, France, Germany, Italy, Poland, Spain and the U.K. International Developmental Licensed Markets & Corporate covers over 75 countries, including equity investments in China and Japan, plus corporate activities.
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A different ownership mix in each unit
At year-end 2025 restaurants were 95% franchised in the U.S., 89% in International Operated Markets and 99% in International Developmental Licensed Markets. Franchisees operate under a conventional franchise, a developmental license or an affiliate arrangement.
In 2025 total revenues were $26,885 million, of which $16,548 million came from franchised restaurants (rent, royalties and fees) and $9,690 million from Company-owned and operated restaurants.
What changed in 2025-26
New leaders in the units
Manu Steijaert became President of International Operated Markets in May 2025 and Dario Baroni President of International Developmental Licensed Markets in June 2025, according to the 2025 10-K. On 4 August 2026 Skye Anderson, previously COO of McDonald’s USA, replaced Joe Erlinger as President of McDonald’s USA.
The 10-K describes a Global Business Services organisation that builds a common company platform so the corporate functions work faster across markets.
McDonald's > NEXT
On 23 September 2026 the company set out a new strategy with four pillars (Menu, Consumer, Restaurant and People > NEXT). It plans about $8.5 billion of partnering support to franchisees through 2036, through rent relief and capital support, and a target of about 250 basis points of restaurant-level efficiency gains.
Generative AI in the restaurant
The Restaurant > NEXT pillar includes deploying a GenAI-enabled tool called ArchIQ at scale across the U.S. and International Operated Markets, built on common technology platforms and a single enterprise data foundation across more than 46,000 restaurants.
McDonald's three units, 2025 (10-K)
U.S.
Restaurants, year-end 202513,706
Share franchised95%
International Operated Markets
Restaurants, year-end 202510,845
Share franchised89%
International Developmental Licensed Markets & Corporate
Restaurants, year-end 202520,805
Share franchised99%
Total
Restaurants, year-end 202545,356
Share franchisedabout 95%
What it means for you
Read McDonald's as two structures at once: a corporate hierarchy for brand and systems, and a franchise network that runs the restaurants.
Match the ownership model to the market: McDonald's chooses franchise, developmental license or affiliate country by country.
Centralise what scales (technology, data, supply standards) and leave local execution to the operator closest to the customer.
If you sell to McDonald's, find out whether the decision sits with corporate, a geographic unit or the franchisees.
Watch the franchisee economics: the NEXT plan funds franchisees because they carry most of the restaurant investment.
The Business Engineer lens
McDonald’s is a platform: corporate owns the brand, the real estate model and now the data and AI layer, while franchisees own the operations. The Business Engineer reads the NEXT plan as a bet that a shared technology stack can raise efficiency across a network the company does not run.
What type of organisational structure does McDonald's have?
A geographic divisional structure (U.S., International Operated Markets, International Developmental Licensed Markets & Corporate) with global corporate functions, on top of a mostly franchised restaurant system.
Who runs McDonald's?
Chris Kempczinski is Chairman, President and CEO. Skye Anderson has led McDonald's USA since 4 August 2026; Manu Steijaert leads International Operated Markets and Dario Baroni the Developmental Licensed Markets.
How many McDonald's restaurants are franchised?
About 95% of the 45,356 restaurants at year-end 2025, ranging from 89% in International Operated Markets to 99% in the Developmental Licensed Markets.
Who are the largest shareholders?
As of 31 December 2025 the 2026 proxy lists The Vanguard Group (10.03%), BlackRock (7.3%) and State Street (5.1%) as holders of more than 5%.
McDonald’s has a divisional organizational structure where each division – based on geographical location – is assigned operational responsibilities and strategic objectives. The main geographical divisions are the US, internationally operated markets, and international developmental licensed markets. And on the other hand, the hierarchical leadership structure is organized around regional and functional divisions.
Corporate Leadership
Type of StructureHierarchy
Structure DetailsMcDonald’s corporate leadership operates within a hierarchical structure. It includes the CEO, senior executives, and various departments like marketing, operations, and finance.
Advantages– Clear lines of authority and accountability. – Efficient decision-making process. – Well-defined roles and responsibilities.
DrawbacksPotential slow decision-making due to multiple levels of approval. Limited flexibility in responding to rapid changes in the fast-food industry.
Operations
Type of StructureDivisional Structure
Structure DetailsMcDonald’s has a divisional structure for its operations, with divisions based on geographic regions or markets. Each division has its own leadership team responsible for restaurant operations, supply chain, and local marketing.
Advantages– Tailored approach to different markets and regions. – Quick adaptation to local market conditions. – Specialization in restaurant operations.
DrawbacksCoordination challenges between divisions. May result in variations in menu offerings and marketing strategies across regions.
Supply Chain Management
Type of StructureFunctional Structure
Structure DetailsSupply chain management functions at McDonald’s follow a functional structure, with specialized teams for logistics, procurement, and inventory management. These teams manage the flow of products from suppliers to restaurants.
Advantages– Efficient management of the supply chain. – Specialized expertise in logistics and inventory management.
DrawbacksPotential challenges in cross-functional collaboration between supply chain and other business units. May not align with specific business divisions.
Marketing and Sales
Type of StructureDivisional Structure
Structure DetailsMcDonald’s marketing and sales operations follow a divisional structure, with divisions responsible for different regions or markets. Marketing teams develop strategies tailored to specific markets, and sales divisions oversee restaurant operations.
Advantages– Customized marketing and sales strategies for different regions and customer segments. – Quick adaptation to regional market conditions. – Specialization in restaurant marketing.
DrawbacksCoordination challenges between regional divisions. May lead to variations in marketing and sales strategies across regions.
Research and Development
Type of StructureFunctional Structure
Structure DetailsMcDonald’s R&D department follows a functional structure, with specialized teams focused on menu development, product innovation, and quality assurance. These teams work on new menu items and improvements in food quality.
Advantages– Specialized expertise in menu development and quality assurance. – Efficient management of R&D activities.
DrawbacksPotential challenges in aligning R&D efforts with the broader business strategy.
Human Resources
Type of StructureFunctional Structure
Structure DetailsThe Human Resources function at McDonald’s operates with a functional structure, focusing on HR-related functions such as talent acquisition, training, and employee relations. Teams handle HR matters across the organization.
Advantages– Efficient management of human resources and talent-related activities. – Specialized expertise in HR functions.
DrawbacksPotential challenges in cross-functional collaboration with business units. May not align with specific business divisions.
Understanding the McDonald’s organizational structure
The current organizational structure of McDonald’s was implemented by incoming CEO Steve Easterbrook in 2015.
Easterbrook reorganized business units, cut costs, and sold more restaurants to franchisees to make the fast-food chain modern and progressive.
This structure was then refined to comprise of three divisions or business segments:
This is the most important division of McDonald’s since a significant portion of company revenue comes from this region.
International developmental licensed markets (IDL) – the IDL division covers all remaining McDonald’s markets and corporate activities.
McDonald’s leadership structure
McDonald’s hierarchical leadership structure means there are multiple levels of management between the managers of individual stores and the CEO Chris Kempczinski. In other words, directives are passed from the CEO down the hierarchy to vice presidents, regional managers, restaurant managers, franchise owners, and other personnel.
Under the corporate banner, there are various executive vice presidents, senior vice presidents, and other staff in the following disciplines:
Global impact.
Strategic alignment.
Office of the CEO.
Digital customer engagement.
Marketing.
Finance.
IT.
Restaurant development and solutions.
Customers.
Supply chains.
Regional
There are also senior vice presidents in the regional divisions we mentioned in the previous section. For the IOM division, there are two positions:
Chief Marketing Officer and Corporate Vice President, and
Corporate Senior Vice President.
There is also a Senior Vice President for IDL markets and a Senior Vice President and Chief People Officer for international markets more broadly.
Functional
McDonald’s also operates six functional groups, with each group headed by either a senior vice president or vice president. These groups are:
Learning and Development.
Compliance.
Communications.
Technology.
Accounting.
Diversity, Equity & Inclusion.
Comparison with Top Related Companies
Burger King: Like McDonald’s, Burger King also uses a franchise model, but its organizational structure is generally more decentralized. Burger King allows its franchisees more control over menu offerings and marketing, which contrasts with McDonald’s, where more stringent standards are maintained across all franchises. This decentralized approach can lead to greater variation in customer experience from one Burger King to another, unlike the consistent experience McDonald’s aims for.
Subway: Subway operates with one of the most decentralized franchise models in the fast-food industry, where individual franchise owners have significant control over their operations, including pricing and suppliers. This structure differs from McDonald’s more centralized control, especially in quality control and branding. Subway’s approach allows for greater flexibility and adaptation to local tastes, but it can also result in inconsistencies in customer experience and brand image.
KFC: KFC, part of Yum! Brands, uses a mixed organizational structure, combining company-owned operations and franchising. KFC’s structure is similar to McDonald’s in its blend of direct corporate control and franchising, but with a greater emphasis on international markets, often adapting its menu to local tastes more extensively than McDonald’s. This approach helps KFC maintain strong local presences, whereas McDonald’s often emphasizes global brand consistency.
Similarities and Differences
Similarities: All these companies rely heavily on a franchise model, which helps to scale operations quickly and effectively with a relatively lower capital investment compared to owning all restaurants directly.
Differences: McDonald’s maintains a more centralized control over its franchises to ensure consistency and compliance with its high standards, contrasting with Subway’s highly decentralized approach and Burger King’s moderately decentralized system. KFC shares a mixed approach but leans more towards local adaptation in its menu and marketing strategies.
Implications
Brand Consistency vs. Local Adaptation: McDonald’s centralized approach ensures high consistency across its global operations, enhancing brand reliability and customer trust. However, this might limit its flexibility in adapting quickly to local market trends, which companies like KFC exploit to their advantage.
Operational Efficiency: McDonald’s structured and centralized model can lead to higher operational efficiency and easier implementation of corporate-wide strategies and initiatives, such as sustainability practices or digital ordering systems. This is more challenging in more decentralized structures like that of Subway.
Innovation and Market Responsiveness: While McDonald’s may excel in efficiency and consistency, its structure might inhibit rapid innovation compared to more decentralized models, which can more readily adapt to and incorporate local consumer preferences and innovations.
Key takeaways
McDonald’s has a predominant divisional organizational structure where each division is assigned operational responsibilities and strategic objectives. The current organizational structure of McDonald’s was implemented by CEO Steve Easterbrook in 2015.
McDonald’s also employs a hierarchical leadership structure where a raft of senior and executive vice presidents report to the CEO. In addition to leading regional divisions, these individuals also head various corporate and functional groups such as Global Impact, Strategic Alignment, and Diversity, Equity & Inclusion.
McDonald’s Organizational Structure Highlights
Divisional Structure: McDonald’s utilizes a divisional organizational structure based on geographical divisions. These divisions are the United States, International Operated Markets (IOM), and International Developmental Licensed Markets (IDL).
Leadership Changes: The current organizational structure was introduced by CEO Steve Easterbrook in 2015 to modernize and improve the company’s operations.
Importance of US Division: The US division holds significant importance as a major revenue contributor to McDonald’s.
Leadership Structure: McDonald’s hierarchical leadership structure involves various levels of management between store managers and the CEO. Directives flow down from the CEO to various levels, including vice presidents, regional managers, and restaurant managers.
Functional Groups: McDonald’s operates six functional groups, each headed by senior vice presidents or vice presidents. These groups cover areas such as Learning and Development, Compliance, Communications, Technology, Accounting, and Diversity, Equity & Inclusion.
Regional Senior Vice Presidents: Within regional divisions like IOM, senior vice presidents hold positions such as Chief Marketing Officer and Corporate Vice President.
CEO Reporting: Both the US division and the IOM and IDL divisions report to the CEO.
Overall Structure: McDonald’s organizational structure supports a divisional approach for operational efficiency and a hierarchical leadership structure for effective decision-making and communication.
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Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
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