A | B | C | D | E | F | G | H | CH | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9
 Golden Arches logo used since 2006 | |
.jpg) Headquarters in Chicago, Illinois, United States | |
| Company type | Public |
|---|---|
| ISIN | US5801351017 |
| Industry | Fast food restaurants, real estate |
| Founded | May 15, 1940, in San Bernardino, California, United States |
| Founders | |
| Headquarters | Chicago, Illinois , United States |
Number of locations |  41,822 restaurants (2023) |
Area served | Worldwide (119+ countries) |
Key people | |
| Products |
|
| Revenue | US$25.49 billion (2023) |
| US$11.65 billion (2023) | |
| US$8.469 billion (2023) | |
| Total assets | US$56.15 billion (2023) |
| Total equity |  −US$4.71 billion (2023) |
Number of employees | c. 150,000 (2023) |
| Website | mcdonalds.com corporate.mcdonalds.com |
| Footnotes / references [a][1][2][3][4][5][6][7][8] | |
McDonald's Corporation is an American multinational fast food chain, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona. In 1955, Ray Kroc, a businessman, joined the company as a franchise agent and in 1961 bought out the McDonald brothers. Previously headquartered in Oak Brook, Illinois, it moved to nearby Chicago in June 2018.[9][10][11][12] McDonald's is also a real estate company through its ownership of around 70% of restaurant buildings and 45% of the underlying land (which it leases to its franchisees).[13][14]
McDonald's is the world's largest fast food restaurant chain,[15] serving over 69 million customers daily in over 100 countries[16] in more than 40,000 outlets as of 2021.[17][18] McDonald's is best known for its hamburgers, cheeseburgers and french fries, although their menu also includes other items like chicken, fish, fruit, and salads. Their bestselling licensed item are their french fries, followed by the Big Mac.[19] The McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's is the world's second-largest private employer with 1.7 million employees (behind Walmart with 2.3 million employees), the majority of whom work in the restaurant's franchises.[20][21] As of 2022[update], McDonald's has the sixth-highest global brand valuation.[22]
McDonald's has been subject to criticism over the health effects of its products,[23][24] its treatment of employees,[25] and its participation in various legal cases.
History
Siblings Richard and Maurice McDonald opened the first McDonald's at 1398 North E Street at West 14th Street in San Bernardino, California, on May 15, 1940. The brothers introduced the "Speedee Service System" in 1948, putting into expanded use the principles of the modern fast-food restaurant that predecessor White Castle had put into practice more than two decades earlier.[26][27] The original mascot of McDonald's was a hamburger-headed chef who was referred to as "Speedee".[28] In 1962, the Golden Arches replaced Speedee as the universal mascot.[29] Clown mascot Ronald McDonald was introduced in 1963 to market the chain to children.[30]
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On May 4, 1961, McDonald's first filed for a U.S. trademark on the name "McDonald's" with the description "Drive-In Restaurant Services", which continues to be renewed. By September 13, McDonald's, under the guidance of Ray Kroc, filed for a trademark on a new logo—an overlapping, double-arched "M" symbol. But before the double arches, McDonald's used a single arch for the architecture of their buildings. Although the "Golden Arches" logo appeared in various forms, the present version was not used until November 18, 1968, when the company was granted a U.S. trademark.
The present corporation credits its founding to franchised businessman Ray Kroc on April 15, 1955.[31] This was the ninth opened McDonald's restaurant overall, although this location was destroyed and rebuilt in 1984.[clarification needed] Kroc was recorded as being an aggressive business partner, driving the McDonald brothers out of the industry.[32]
Kroc and the McDonald brothers fought for control of the business, as documented in Kroc's autobiography. In 1961, he purchased the McDonald brothers' equity in the company and began the company's worldwide reach.[33] The sale cost Kroc $2.7 million, a huge sum during that time.[32] The San Bernardino restaurant was eventually torn down in 1971, and the site was sold to the Juan Pollo chain in 1998. This area serves as headquarters for the Juan Pollo chain, and a McDonald's and Route 66 museum.[34][35] With the expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life.[36] Its prominence has made it a frequent topic of public debates about obesity, corporate ethics, and consumer responsibility.
Products
McDonald's predominantly sells hamburgers, various types of chicken, chicken sandwiches, French fries, soft drinks, shakes, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. On a seasonal basis, McDonald's offers the McRib sandwich. Some speculate the seasonality of the McRib adds to its appeal.[37] During March of each year, McDonald's offers a Shamrock Shake to honor Saint Patrick's Day.[38]
In addition, the chain also sells some items within the United States on a regional basis; for example, the Hatch Green Chile Double Cheeseburger, which is topped with New Mexico green chile, is only available in the southwestern state of New Mexico.[39][40]
Products are offered as either "dine-in" (where the customer opts to eat in the restaurant) or "take-out" (where the customer opts to take the food off the premises). "Dine-in" meals are provided on a plastic tray with a paper insert on the floor of the tray. "Take-out" meals are usually delivered with the contents enclosed in a distinctive McDonald's-branded brown paper bag. In both cases, the individual items are wrapped or boxed as appropriate.
Since Steve Easterbrook became CEO of the company in 2015, McDonald's has streamlined the menu which in the United States contained nearly 200 items. The company has looked to introduce healthier options and removed high-fructose corn syrup from hamburger buns. The company has removed artificial preservatives from Chicken McNuggets,[41] replacing chicken skin, safflower oil and citric acid found in Chicken McNuggets with pea starch, rice starch, and powdered lemon juice.[42]
In September 2018, McDonald's USA announced that they no longer use artificial preservatives, flavors and colors entirely from seven classic burgers sold in the U.S., including the hamburger, cheeseburger, double cheeseburger, McDouble, Quarter Pounder with Cheese, double Quarter Pounder with Cheese and the Big Mac.[43][44] Nevertheless, the pickles will still be made with an artificial preservative, although customers can choose to opt out of getting pickles with their burgers.[45][46]
In November 2020, McDonald's announced McPlant, a plant-based burger, along with plans to develop additional meat alternative menu items that extend to chicken substitutes and breakfast sandwiches.[47][48] This announcement came after the successful testing of Beyond Meat plant based meat substitutes. In late 2022, McDonald's announced the addition of the Double McPlant at all restaurants in the United Kingdom and Ireland starting January 4, due to the success of the McPlant.[49]
The company often introduces items temporarily or brings them back after long absences.[50][51]
McDonald's Menu is customized to reflect consumer tastes in their respective countries. Restaurants in several countries, particularly in Asia, serve soup. This local deviation from the standard menu is a characteristic for which the chain is particularly known and one which is employed either to abide by regional food taboos (such as the religious prohibition of beef consumption in India) or to make available foods with which the regional market is more familiar (such as the sale of McRice in Indonesia, or Ebi (prawn) Burger in Singapore and Japan). McDonald's restaurants in China include fried buns and soybean milk on their breakfast menus.[52]
In Germany and some other Western European countries, McDonald's sells beer. In New Zealand, until 2020, McDonald's sold meat pies after local affiliate McDonald's New Zealand partially relaunched the Georgie Pie fast food chain it bought out in 1996.[53] In Greece, the signature hamburger, Big Mac, is changed by adding Tzatziki sauce and packaging in a pita.[54]
In the United States and Canada, after limited trials on a regional basis, McDonald's began offering in 2015[55] and 2017,[56] respectively, a partial breakfast menu during all hours its restaurants were open. All-day breakfast was phased out from menus at the start of the COVID-19 pandemic in 2020.[57]
McDonald's Operations in the United States
There are over 36,000 McDonald's restaurants globally. Over a third of these (14,146 restaurants) are in the United States alone—the second highest number is in Japan with 2,975 restaurants, followed by China with 2,700. These three countries make up a majority of global McDonald's stores.
Types
In the United States, most standalone McDonald's restaurants offer both counter service and drive-through service, with indoor and sometimes outdoor seating.[58] Drive-Thru, Auto-Mac, Pay and Drive, or "McDrive" as it is known in many countries, often has separate stations for placing, paying for, and picking up orders while the customer remains in their vehicle;[58] it was first introduced in Sierra Vista, Arizona in 1975,[59] following the lead of other fast-food chains. The first such restaurant in Britain opened at Fallowfield, Manchester in 1986.[60]
In 1994, McDonald's attempted Hearth Express, a prototype specializing in homestyle takeout meals. Among the fare offered were meatloaf, fried chicken, and baked ham. This experiment started with a single location in Darien, Illinois, but closed in only one year.[61]
McDrive
In some countries, McDrive locations near highways offer no counter service or seating.[62] In contrast, locations in high-density city neighborhoods often omit drive-through service.[63] There are also a few locations, mostly in downtown districts, that offer a "Walk-Thru" service in place of Drive-Thru.[64]
McCafé
McCafé is a café-style accompaniment to McDonald's restaurants. The concept was created by McDonald's Australia, starting with Melbourne in 1993.[65]
"Create Your Taste" restaurants
From 2015 to 2016, McDonald's tried a more flexible burger service and restaurant concept based on other restaurants such as Shake Shack and Grill'd. It was rolled out for the first time in Australia in early 2015 and expanded to China, Hong Kong, Singapore, Arabia, and New Zealand, with ongoing trials in the US market. In dedicated "Create Your Taste" (CYT) kiosks, customers could choose all ingredients including type of bun and meat along with optional extras. CYT food was served to the table on wooden boards, fries in wire baskets, and salads in china bowls with metal cutlery at a higher price. In November 2016, Create Your Taste was replaced by a "Signature Crafted Recipes" program designed to be more efficient and less expensive.[66]
PlayPlaces
McDonald's playgrounds are called PlayPlaces. Some McDonald's in suburban areas and certain cities feature large indoor or outdoor playgrounds. The first PlayPlace with the familiar crawl-tube design with ball pits and slides was introduced in 1987 in the US, with many more being constructed soon after.[citation needed]
McDonald's Next
McDonald's Next uses open-concept design and offers "Create Your Taste" digital ordering. The concept store also offers free mobile device charging and table service after 6:00 pm. The first store opened in Hong Kong in December 2015.[67]
Other
Some locations are connected to gas stations and convenience stores,[68] while others called McExpress have limited seating or menu or may be located in a shopping mall. Other McDonald's are located in Walmart stores. McStop is a location targeted at truckers and travelers who may have services found at truck stops.[69]
In Sweden, Happy Meal boxes can be used as goggles,[70] with the game Slope Stars.[70] In the Netherlands, McDonald's has introduced McTrax that doubles as a recording studio; it reacts to touch.[70] They can create their own beats with a synth and tweak sounds with special effects.[70]
On the river Elbe in Hamburg, Germany is the world's only "McBoat", a float-through service (similar to drive-through) for people on the river.[71][72]
2006 redesign
In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of its restaurants, the first major redesign since the 1970s.[73][74] It resembles a coffee shop, with wooden tables, faux-leather chairs, and muted colors; the red was muted to terracotta, the yellow was shifted to golden for a more "sunny" look, and olive and sage green were added. The warmer look has less plastic and more brick and wood, with modern hanging lights for a softer glow. Many restaurants feature free Wi-Fi and flat-screen TVs. Other upgrades include double drive-thrus, flat roofs instead of the angled red roofs, and fiber glass instead of wood. Instead of the familiar golden arches, the restaurants feature "semi-swooshes" (half of a golden arch), similar to the Nike swoosh.[75]
Smoking ban
McDonald's began banning smoking in 1994 when it restricted customers from smoking within its 1,400 wholly owned restaurants.[76]
COVID-19 pandemic
As a result of the COVID-19 pandemic, McDonald's closed most seating and all play areas in its United States restaurants.[77] It transitioned to drive-thru and curbside orders at locations and online food ordering delivery services.[78] In July 2020, for the year's second quarter, McDonald's reported earnings of 66 cents per share. Compared to the same period of last year, it represented a fall of 68%.[79]
2023 redesign and new concept
In July 2023, the company announced it was working towards a new fast-food brand called CosMc's that would be tested at ten sites. The first location was opened in December 2023 in Bolingbrook, Illinois, and the company is working to open nine restaurants in Texas by the end of 2024 as a test. The outlets will have a smaller real-estate footprint than regular McDonald's restaurants and are focused on selling coffees and other drinks to afternoon customers.[80]
The name for the new brand comes from CosMc, a McDonaldland mascot that appeared in advertisements in the late 1980s and early 1990s.[81][82][83]
McDonald's Employee Relations in the United States
Automation
Since the late 1990s, McDonald's has attempted to replace employees with electronic kiosks which would perform actions such as taking orders and accepting money. In 1999, McDonald's first tested "E-Clerks" in suburban Chicago, Illinois, and Wyoming, Michigan, with the devices being able to "save money on live staffers" and attracting larger purchase amounts than average employees.[84]
In 2013, the University of Oxford estimated that in the succeeding decades, there was a 92% probability of food preparation and serving to become automated in fast food establishments.[85] By 2016, McDonald's "Create Your Taste" electronic kiosks were seen in some restaurants internationally where customers could custom order meals. As employees pushed for higher wages in the late-2010s, some believed that fast food companies such as McDonald's would use the devices to cut costs for employing individuals.[86]
In 2017, McDonald's launched an app in the United States that allows customers to skip the ordering line inside or drive through and order online. Many McDonald's locations have special parking spaces for such orders.[87]
In September 2019, McDonald's purchased an AI-based start-up Apprente to replace human servers with voice-based technology in its US drive-throughs.[88]
In early 2023, McDonald's opened its first largely automated restaurant in Fort Worth, Texas. The restaurant in question would de-emphasize human contact when ordering, with employees available if there were problems but who would otherwise be absent from the ordering process (along with others working in the kitchen or other back-of-the-house roles). There was no seating in this restaurant.[89][90]
Wages
On August 5, 2013, The Guardian revealed that 90 percent of McDonald's UK workforce are on zero-hour contracts, making it possibly the largest such private sector employer in the country.[91] In April 2017, due to employee strikes, they gave all employees the option of fixed contracts instead.[92] A study released by Fast Food Forward conducted by Anzalone Liszt Grove Research showed that approximately 84 percent of all fast food employees working in New York City in April 2013 had been paid less than their legal wages by their employers.[93] From 2007 to 2011, fast food workers in the U.S. drew an average of $7firstbillion of public assistance annually resulting from receiving low wages.[94] The McResource website advised employees to break their food into smaller pieces to feel fuller, seek refunds for unopened holiday purchases, sell possessions online for quick cash, and "quit complaining" as "stress hormone levels rise by 15 percent after ten minutes of complaining."[95] In December 2013, McDonald's shut down the McResource website amidst negative publicity and criticism. McDonald's plans to continue an internal telephone help line through which its employees can obtain advice on work and life problems.[96] The Roosevelt Institute, a liberal think tank, accuses some McDonald's restaurants of actually paying less than the minimum wage to entry positions due to "rampant" wage theft.[97] In South Korea, McDonald's pays part-time employees $5.50 an hour and is accused of paying less with arbitrary schedule adjustments and pay delays.[98] In late 2015, data collected anonymously by Glassdoor suggests that McDonald's in the United States pays entry-level employees between $7.25 an hour and $11 an hour, with an average of $8.69 an hour. Shift managers get paid an average of $10.34 an hour. Assistant managers get paid an average of $11.57 an hour.[99] McDonald's former CEO, Steve Easterbrook, earned an annual salary of $1,100,000.[100] His total compensation for 2017 was $21,761,052.[101]
Strikes
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McDonald's workers have occasionally decided to strike over pay, with most of the employees on strike seeking to be paid $15.00.[102] When interviewed about the strikes occurring, former McDonald's CEO Ed Rensi stated: "It's cheaper to buy a $35,000 robotic arm than it is to hire an employee who's inefficient making $15 an hour bagging french fries" with Rensi explaining that increasing employee wages could possibly take away from entry-level jobs.[103] However, according to Easterbrook, increasing wages and benefits for workers saw a 6% increase in customer satisfaction when comparing 2015's first quarter data to the first quarter of 2016, with greater returns seen as a result.[103] In September 2017, two British McDonald's stores agreed to a strike over zero-hours contracts for staff. Picket lines were formed around the two stores in Crayford and Cambridge. The strike was supported by then Leader of the Opposition Jeremy Corbyn.[104][105]
Occupation
Workers at the McDonald's franchise at Saint-Barthélémy, Marseille, occupied the restaurant, in protest against its planned closure. Employing 77 people, the restaurant is the second-biggest private sector employer in Saint-Barthélémy, which has an unemployment rate of 30 percent.[106] Lawyers for Kamel Guemari, a shop steward at the franchise, claimed an attempt was made to kill him when a car drove at him in the restaurant car park.[107][108]
Working conditions
In March 2015, McDonald's workers in 19 U.S. cities filed 28 health and safety complaints with the U.S. Occupational Safety and Health Administration which allege that low staffing, lack of protective gear, poor training, and pressure to work fast has resulted in injuries. The complaints allege that, because of a lack of first aid supplies, workers were told by management to treat burn injuries with condiments such as mayonnaise and mustard.[109] The Fight for $15 labor organization aided the workers in filing the complaints.[110]
Animal welfare standards
In 2015, McDonald's pledged to stop using eggs from battery cage facilities by 2025. Since McDonald's purchases over 2 billion eggs per year or 4 percent of eggs produced in the United States, the switch is expected to have a major impact on the egg industry and is part of a general trend toward cage-free eggs driven by consumer concern over the harsh living conditions of hens.[111][112] The aviary systems from which the new eggs will be sourced are troubled by much higher mortality rates, as well as introducing environmental and worker safety problems.[113] The high hen mortality rate, which is more than double that of battery cage systems, will require new research to mitigate. The facilities have higher ammonia levels due to faeces being kicked up into the air. Producers raised concerns about the production cost, which is expected to increase by 36 percent.[114]
McDonald's continues to source pork from facilities that use gestation crates, and in 2012 pledged to phase them out.[115][116][needs update]
Corporate overview
Facts and figures
McDonald's restaurants are in 120 countries and territories and serve first 68 million customers each day.[118][119] There are 37,855 restaurants worldwide, employing more than 210,000 people as of the end of 2018.[17][18][118] There are a total of 2,770 company-owned locations and 35,085 franchised locations, which includes 21,685 locations franchised to conventional franchisees, 7,225 locations licensed to developmental licensees, and 6,175 locations licensed to foreign affiliates.[17][18]
Focusing on its core brand, McDonald's began divesting itself of other chains it had acquired during the 1990s. The company owned a majority stake in Chipotle Mexican Grill until October 2006, when McDonald's fully divested from Chipotle through a stock exchange.[120][121] Until December 2003, it owned Donatos Pizza, and it owned a small share of Aroma Café, from 1999 to 2001. On August 27, 2007, McDonald's sold Boston Market to Sun Capital Partners.[122]
McDonald's has increased shareholder dividends for 25 consecutive years,[123] making it one of the S&P 500 Dividend Aristocrats.[124] The company is ranked 131st on the Fortune 500 of the largest United States corporations by revenue.[125] In October 2012, its monthly sales fell for the first time in nine years.[126] In 2014, its quarterly sales fell for the first time in seventeen years, when its sales dropped for the entirety of 1997.[127]
In the United States, it is reported that drive-throughs account for 70 percent of sales.[128][129] McDonald's closed down 184 restaurants in the United States in 2015, which was 59 more than what they planned to open.[130][131] This move was the first time McDonald's had a net decrease in the number of locations in the United States since 1970.[131]
The McDonald's on-demand delivery concept, which began in 2017 with a partnership with Uber Eats and added DoorDash in 2019 (with select locations adding Grubhub in 2021), accounts for up to 3% of all business as of 2019.[132]
The $100 billion in sales generated by McDonald's company-owned and franchise restaurants in 2019 accounts for almost 4% of the estimated $2.5 trillion global restaurant industry.[133]
Business trends
The key trends for the McDonald's Corp. are (as at the financial year ending December 31):
| Year | Revenue in billion US$ |
Net income in billion US$ |
Total assets in billion US$ |
Price per share in USD$ [citation needed] |
Locations [134] |
Employees [135][136] |
Ref. |
|---|---|---|---|---|---|---|---|
| 2005 | 19.1 | 2.6 | 29.9 | 31.88 | 447,000 | [137] | |
| 2006 | 20.8 | 3.5 | 28.9 | 36.79 | 31,046 | 465,000 | [137] |
| 2007 | 22.7 | 2.3 | 29.3 | 50.98 | 31.377 | 390,000 | [137] |
| 2008 | 23.5 | 4.3 | 28.4 | 58.06 | 31,967 | 400,000 | [138] |
| 2009 | 22.7 | 4.5 | 30.2 | 57.44 | 32,478 | 385,000 | [139] |
| 2010 | 24.0 | 4.9 | 31.9 | 70.91 | 32,737 | 400,000 | [140] |
| 2011 | 27.0 | 5.5 | 32.9 | 83.97 | 33,510 | 420,000 | [141] |
| 2012 | 27.5 | 5.4 | 35.3 | 92.53 | 34,480 | 440,000 | [142] |
| 2013 | 28.1 | 5.5 | 36.6 | 97.26 | 35,429 | 440,000 | [143] |
| 2014 | 27.4 | 4.7 | 34.2 | 96.38 | 36,258 | 420,000 | [144] |
| 2015 | 25.4
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