McDonald’s made $8.6B of net income in 2025 ($8,563 million), up 4% from $8,223 million in 2024, on total revenues of $26,885 million and operating income of $12,393 million (operating margin 46.1%). Most of that profit comes from franchising: about 95% of its 45,356 restaurants at year-end 2025 were run by franchisees, who pay McDonald’s rent and royalties based on a percent of sales. In the first half of 2026 net income was $4,345 million, up 5%.
Under a conventional franchise, McDonald's generally owns or leases the land and building, and the franchisee pays rent and royalties based on a percent of sales, with minimum rent payments. Franchised revenues were $16,548 million ($16.5B) in 2025, about 62% of total revenues.
02
Franchised margins carry the profit
After occupancy costs of $2,618 million ($2.6B), franchised margins were $13,930 million in 2025: about 84% of franchised revenues and, in the 10-K's words, approximately 90% of restaurant margin dollars.
03
Company-run restaurants add sales, less profit
The 2,039 company-owned and operated restaurants had sales of $9,690 million in 2025, about 36% of revenues, but restaurant margins of only $1,422 million (about 15% of their sales, and about 9% of all restaurant margins), because McDonald's pays their food, labour and occupancy costs.
04
Below the line: G&A, interest and tax
Operating income was $12,393 million in 2025. Interest expense of $1,582 million and income taxes of $2,334 million (an effective rate of 21.4%) took net income to $8,563 million.
What changed in 2025-26
Profit still rising in 2026
Second-quarter 2026 net income rose 5% to $2,362 million on revenues of $7,099 million. Global comparable sales grew 1.3%, but only 0.8% in the U.S., where the company cited negative comparable guest counts.
NEXT: a margin target of low-to-mid 50%
On 23 September 2026 McDonald’s set a target to lift its operating margin to the low-to-mid 50% range by 2030, from 46.1% in 2025. It plans about $8.5 billion of rent relief and capital support for franchisees through 2036 to fund restaurant modernisation.
Generative AI in the restaurant
Part of the NEXT plan is deploying GenAI-enabled ArchIQ at scale, which McDonald’s says will help deliver about 250 basis points of gross restaurant-level efficiency, roughly $100,000 a year of cash flow for the average U.S. restaurant.
Loyalty as a profit engine
McDonald’s had nearly 220 million 90-day active loyalty users across 70 markets at the end of Q2 2026, up 13%, and its 10-K targets 250 million by the end of 2027.
McDonald's net income by year (from its 10-K filings)
Read franchised margins, not total revenue: they explain most of McDonald's profit.
Watch U.S. guest counts: rent and royalties rise only if franchisee sales keep growing.
Track the NEXT franchisee support: rent relief reduces franchised revenue in exchange for faster modernisation.
Compare net income with operating income: interest on about $40.0 billion of debt (end of 2025) takes a growing share.
If you build a franchise or platform model, notice the pattern: own the scarce asset and the brand, let partners run the operations.
The Business Engineer lens
McDonald’s profit is a property-and-brand annuity: franchisees carry the operating risk while McDonald’s collects rent and royalties on their sales. AI enters the model as a cost tool for franchisees, through ArchIQ and digital ordering, because their efficiency is what protects the rent.
Net income was $8,563 million in 2025, up 4% from $8,223 million in 2024, on revenues of $26,885 million.
Where does McDonald's profit come from?
Mostly from franchising: franchised margins of $13,930 million were about 90% of restaurant margin dollars in 2025, from rent and royalties paid by franchisees.
What is McDonald's operating margin?
Operating margin was 46.1% in 2025, up from 45.2% in 2024; in September 2026 the company targeted the low-to-mid 50% range by 2030.
How is McDonald's doing in 2026?
Net income for the first half of 2026 was $4,345 million, up 5%, with second-quarter global comparable sales up 1.3%.
The complete explainer, cleaned up and reformatted for mobile.
In short
McDonald’s net income was $8.6B in 2025, up 4.1% and the highest in its filings since at least 2007, on operating income of $12.4B. In Q2 2026 net income was $2.4B, up 4.8%.
How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
McDonald’s profit by year
McDonald’s profits: $8.6B, built on rent. Source: McDonald’s Form 10-K 2025 (year to 31 Dec 2025), SEC EDGAR: income statement (franchised revenues, occupancy, company-operated expenses, operating and net income); earlier 10-Ks for net income history; Q2 2026 earnings release (Aug 2026): comparable sales, guest counts, net income. Margins calculated. Columns to scale. Analysis by The Business Engineer.
Year
Net income
Op. income
Net margin*
2025
$8.6B
$12.4B
31.9%
2024
$8.2B
$11.7B
31.7%
2023
$8.5B
$11.6B
33.2%
2022
$6.2B
$9.4B
26.6%
2021
$7.5B
$10.4B
32.5%
2020
$4.7B
$7.3B
24.6%
2019
$6.0B
$9.1B
28.2%
2017
$5.2B
$9.6B
22.8%
2015
$4.5B
$7.1B
17.8%
2013
$5.6B
$8.8B
19.9%
2010
$4.9B
$7.5B
20.5%
2007
$2.4B
$3.9B
10.5%
Source: McDonald’s 10-K filings via SEC EDGAR XBRL (latest 10-K). *Calculated.
What drives McDonald’s profit
A franchisor’s cost base. Franchised restaurants returned $13.9B of margin in 2025 against $1.4B from company-operated restaurants (calculated from the 10-K).
Fewer company restaurants, higher margin. Net income rose from $4.5B in 2015 to $6.0B in 2019 while revenue fell, as company-run restaurants dropped from about 6,400 to 2,636.
Earlier analysis and background (pre-2026 figures)
The text below is the earlier version of this page. Its figures refer to earlier periods and some were corrected above; the current, sourced figures are in the sections above.
Last Updated: 6 October 2026
What Is McDonald’s Profits?
McDonald’s profits represent the net earnings generated by the fast-food corporation after deducting all operating expenses, cost of goods sold, taxes, and interest from total revenues. As of 2024, McDonald’s net income reflects the performance of a global enterprise operating through a franchise-dominant business model spanning 45,356 McDonald's restaurants at year-end 2025.
Updated 6 October 2026: we refreshed 21 figures on this page, now taken from SEC EDGAR filings. Anything we could not check against a current source keeps its original year, so you can see how old it is.
Latest figures · checked 6 October 2026
McDonald’s reported net income of $8,563 million for fiscal 2025, compared with $8,223 million in 2024. SEC EDGAR filings
McDonald’s total revenues were $26,885 million in 2025, including $16,548 million from franchised restaurants and $9,690 million from Company-owned and operated restaurants. SEC EDGAR filings
McDonald’s operating margin increased from 45.2% in 2024 to 46.1% in 2025. SEC EDGAR filings
McDonald’s had 45,356 restaurants at year-end 2025, approximately 95% of them franchised. SEC EDGAR filings
In the second quarter of 2026 (ended June 30), McDonald’s revenues were $7,099 million and net income was $2,362 million. SEC EDGAR filings
McDonald’s global comparable sales increased 1.3% in the second quarter of 2026, with U.S. comparable sales up 0.8%. SEC EDGAR filings
As of the end of Q2 2026, McDonald’s 90-day active loyalty users across 70 loyalty markets were up 13% to nearly 220 million. SEC EDGAR filings
McDonald’s profitability serves as a critical performance metric for investors, franchisees, and the broader quick-service restaurant industry. The company’s profit trajectory demonstrates how franchising models can generate substantial returns while minimizing capital expenditure and operational risk. Understanding McDonald’s profits requires examining both company-operated store revenues and franchise royalty streams, which together create a highly scalable business generating consistent cash flow across economic cycles.
Key numbersChecked 6 October 2026
$8,563 millionMcDonald's reported net income of $8,563 million for fiscal 2025, compared with $8,223 million in 2024.SEC EDGAR filings
$26,885 millionMcDonald's total revenues were $26,885 million in 2025, including $16,548 million from franchised…SEC EDGAR filings
$7,099 millionIn the second quarter of 2026 (ended June 30), McDonald's revenues were $7,099 million and net income was…SEC EDGAR filings
45.2%McDonald's operating margin increased from 45.2% in 2024 to 46.1% in 2025.SEC EDGAR filings
In one lineMcDonald's profits represent the net earnings generated by the fast-food corporation after deducting all operating expenses, cost of goods sold, taxes, and interest from total revenues.
FourWeekMBABusiness EngineerAt a glance
McDonald's reported net income of $8,563 million for fiscal 2025, compared with $8,223 million in 2024.
For the six months ended June 30, 2026, McDonald's reported GAAP net income of $4,345 million.
Layout and figures refreshed 6 October 2026. Sources are listed at the end of the article.
Why it mattersFrom the article
The company's profit trajectory demonstrates how franchising models can generate substantial returns while minimizing capital expenditure and operational risk.
McDonald's franchisee profitability directly influences corporate profit growth, as financially healthy franchisees expand store counts and invest in technology adoption, generating incrementally higher royalty payments.
Revenue structure reflects a system in which approximately 95% of the 45,356 McDonald's restaurants were franchised at year-end 2025
Franchise model generates recurring royalty income with minimal capital requirements
Operating margin was 46.1% in 2025 due to asset-light franchising strategy
Geographic diversification across North America, Europe, and Asia-Pacific reduces regional economic risk
Quarterly earnings per share fluctuate based on franchise growth and comparable sales metrics
How McDonald’s Profits Work
McDonald’s profit generation operates through a dual-stream revenue model combining company-operated restaurant sales with franchise royalties and rent payments. The franchise-first strategy allows McDonald’s to scale globally while shifting operational costs and inventory risks to franchisees, thereby protecting corporate profit margins during downturns.
The mechanics of McDonald’s profit creation follow these sequential steps:
Quarterly earnings communication: McDonald’s reports comparable sales growth, franchise system growth rates, and same-store sales metrics to investors quarterly. Management guidance on these metrics directly influences stock valuations, creating incentives to maximize profitable growth over volume expansion.
FourWeekMBABusiness EngineerTimeline, as stated in the article
2024
McDonald's reported net income of $8,223 million in 2024 and $8,563 million in 2025, according to its 2025 annual report.
2025
McDonald's reported net income of $8,563 million for fiscal 2025, compared with $8,223 million in 2024.
2026
For the six months ended June 30, 2026, McDonald's reported GAAP net income of $4,345 million.
Advantages and Disadvantages of McDonald’s Profits
Disadvantages of McDonald’s Profit Model
Digital-native competitor threats and consumer preference shifts: Ghost kitchens, delivery-native brands, and plant-based competitors enable consumers to access meals without visiting McDonald’s restaurants, fragmenting market share and comparable sales growth. Alternative work arrangements also reduce the daily commute traffic that historically generated breakfast and lunch daypart visits, creating structural headwinds to franchise profitability.
Key Takeaways
McDonald's net income was $8,563 million in 2025, demonstrating profit leverage through pricing power and operational efficiency rather than unit expansion.
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.
