McDonald’s is far bigger than Burger King: 45,356 restaurants at the end of 2025 against 19,900 Burger Kings. McDonald’s earned $12.4B of operating income on $26.9B of revenue; Burger King’s parent, Restaurant Brands International (which also owns Tim Hortons, Popeyes and Firehouse Subs), earned $2.2B on $9.4B.
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 earns 5.6ร the operating income of Burger King's parent. Source: McDonald's Form 10-K for 2025; Restaurant Brands International Form 10-K for 2025 (SEC EDGAR). Ratios and McDonald's system-wide sales calculated. Analysis by The Business Engineer.
Scale. McDonald’s has 2.3ร as many restaurants as Burger King, and RBI’s four brands together run over 33,000 restaurants (RBI 10-K).
Real estate. McDonald’s collected $10.4B of rent from franchisees in 2025 on top of $6.0B of royalties (10-K); it owns about 56% of the land under restaurants in its consolidated markets.
What to watch
Traffic: McDonald’s global comparable sales +1.3% in Q2 2026 (Q2 2026 release).
RBI’s margin: operating income fell from $2.4B to $2.2B in 2025.
Unit growth: McDonald’s added 1,879 restaurants in 2025.
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.
In 2020, McDonald’s generated over $19 billion in revenue, compared to Burger King’s almost $5 billion in revenue, in the same period.
Elements ยท McDonald's ยท Burger King ยท Similarities ยท Differences ยท Competitive Advantage
Customer Segments
McDonald’s: Fast-food consumers
Burger King: Fast-food consumers
Similarities: Both target fast-food consumers looking for quick and affordable meals.
Differences: While both serve fast-food consumers, McDonald’s has a broader customer base and international presence. Burger King focuses on specific menu offerings and marketing strategies.
Competitive Advantage: Broad Customer Base (McDonald’s), Focus on Customization (Burger King).
Similarities: Both offer convenient dining options and iconic menu items. McDonald’s emphasizes its globally recognized menu. Burger King highlights the flame-grilled taste and customization options.
Differences: McDonald’s menu is known for its consistency worldwide, while Burger King focuses on the flame-grilled taste and “have it your way” customization.
Competitive Advantage: Iconic Menu (McDonald’s), Customization (Burger King).
Similarities: Both prioritize quick service to meet customer demands. McDonald’s emphasizes consistency in menu items and service. Burger King focuses on customization, allowing customers to tailor their orders.
Differences: McDonald’s aims for a consistent dining experience globally. Burger King emphasizes the “have it your way” approach, giving customers more control over their orders.
McDonald’s: Menu development, franchise management
Burger King: Menu development, franchise management
Similarities: Both engage in menu development and franchise management.
Differences: McDonald’s has a more extensive and standardized menu. Burger King focuses on menu items like flame-grilled burgers and unique promotional offerings.
Competitive Advantage: Menu Specialization (Burger King), Extensive Menu Options (McDonald’s).
Similarities: Both rely on their brand recognition, franchise networks, and supply chains to operate efficiently.
Differences: McDonald’s has a larger global presence and a well-established brand. Burger King focuses on its flame-grilled cooking process and unique menu items.
Competitive Advantage: Global Brand Recognition (McDonald’s), Flame-Grilled Process (Burger King).
Similarities: Both collaborate with franchisees, suppliers, and promotional partners to support their operations and marketing efforts.
Differences: McDonald’s has a larger network of franchisees and global suppliers. Burger King has partnerships tied to its unique menu items and promotional campaigns.
Similarities: Both generate revenue through product sales, franchise fees, and royalties from franchisees.
Differences: McDonald’s has a larger revenue base due to its extensive restaurant network. Burger King’s revenue is derived from a smaller number of restaurants but focuses on higher-margin menu offerings.
Competitive Advantage: Diverse Revenue Streams (McDonald’s), Focus on Margin (Burger King).
Cost Structure
McDonald’s: Food and labor costs, marketing expenses
Burger King: Food and labor costs, marketing expenses
Similarities: Both face costs related to food and labor, as well as marketing expenses.
Differences: McDonald’s has a broader international presence, resulting in higher overall operating costs. Burger King focuses on cost control while offering unique menu items.
Competitive Advantage: Cost Control (Burger King), Global Presence (McDonald’s).
The major institutional shareholders comprise The Vanguard Group (8.83%) and BlackRock (7.1%). Major individual shareholders include Kevin Ozan (Executive Vice President and Chief Financial Officer), Stephen Easterbrook (President and CEO), and John Rogers, Jr., an investor, philanthropist, and Ariel Capital Management founder. And a few other individual shareholders.
McDonald’s is a heavily franchised businessmodel. In 2023, 61% of the total revenues came from franchised restaurants. The company’s long-term goal is to transition toward 95% of franchised restaurants (by 2023, franchised restaurants were 94.9% of the total restaurants). The company generated over $25 billion in revenues in 2023, of which $9.74 billion was from owned restaurants and $15.43 billion from franchised restaurants.
Of over $25 billion in revenues for 2023, $9.74 billion came from company-operated stores, while $15.43 billion came from franchised restaurants compared to $23 billion in revenue in 2022, of which $8.74 came from company-operated stores, while $14.1 billion came from franchised restaurants. And over $23 billion in revenue in 2021, McDonald’s generated almost ten billion dollars from company-operated restaurants, while it generated $13 billion from franchised restaurants.
In 2023, McDonald’s generated $8.47 billion in net profits compared to $6.18 billion in net profits for 2022, and $7.54 billion in 2021. The company runs a heavily franchised businessmodel, where it has reached its target of nearly 95% franchised restaurants worldwide.
In 2023, McDonald’s generated $8.47 billion in net profits compared to $6.18 billion in net profits for 2022, and $7.54 billion in 2021. The company runs a heavily franchised businessmodel, where it has reached its target of nearly 95% franchised restaurants worldwide.
McDonald’s had 150,000 employees in 2023, compared to 150,000 employees in 2022, 200,000 employees in 2021, and the same in 2020. The company runs a heavily franchised businessmodel, where most stores are franchised restaurants vs. owned ones. In 2022, McDonald’s franchised locations employed over two million individuals.
McDonald’s runs a heavy franchise businessmodel, where it has been substantially increasing its franchised restaurants while reducing its company-operated ones. For instance, by 2023, McDonald’s had 39,680 franchised restaurants vs. 2,142 owned and operated ones.
McDonald’s runs a heavily franchised businessmodel, where most of its margins come from franchised restaurants vs. operated ones. For instance, in 2023, $1.52 billion came from owned restaurants whereas $12.96 came from franchised restaurants.
Burger King is an American multinational chain of fast-food restaurants that is headquartered in Miami, Florida. The first Burger King restaurant, then known as Insta-Burger King, was opened in Jacksonville, Florida, in 1953 by Keith Cramer and his stepfather Matthew Burns. Burger King Worldwide merged with the Canadian coffee chain Tim Hortons in 2014. This precipitated the formation of parent company Restaurant Brands International, which is part-owned by former Burger King owner 3G Capital.
McDonaldโs has a divisional organizational structure where each division โ based on geographical location โ 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.
Franchising is a business model where the owner (franchisor) of a product, service, or method utilizes the distribution services of an affiliated dealer (franchisee). Usually, the franchisee pays a royalty to the franchisor to be using the brand, process, and product. And the franchisor instead supports the franchisee in starting up the activity and providing a set of services as part of the franchising agreement. Franchising models can be heavy-franchised, heavy-chained, or hybrid (franchained).
Coca-Cola follows a business strategy (implemented since 2006) where through its operating arm – the Bottling Investment Group – it invests initially in bottling partners operations. As they take off, Coca-Cola divests its equity stakes, and it establishes a franchising model, as long-term growth and distributionstrategy.
Coca-Cola’s Purpose is to “refresh the world. make a difference.” Its vision and mission are to “craft the brands and choice of drinks that people love, to refresh them in body & spirit. And done in ways that create a more sustainable business and better-shared future that makes a difference in peopleโs lives, communities, and our planet.”
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, HackerNoon and Search Engine People. Find him on LinkedIn and Substack. See how we source.
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