Two Minute Bit
Money · ~2 min

McDonald's makes more from rent ($10B) than from selling burgers.

RevenueRent$10BRoyalties$5.6BCompany-operated$9.5BOther$0.8B
McDonald's FY2024 revenue: rent outweighs royalties by nearly 2×.

Revenue splits into 4 flows: Rent $10B (the focal flow), Royalties $5.6B, Company-operated $9.5B, Other $0.8B. McDonald's FY2024 revenue: rent outweighs royalties by nearly 2×.

McDonald's owns or leases the land beneath ~55% of its restaurants, then sub-leases to franchisees at a markup. On top of that, it collects a royalty (~5% of sales). Rent is the bigger line: McDonald's is quietly a real-estate company with a burger brand attached.

The franchise model means franchisees take the operating risk while McDonald's clips rent and a royalty: two income streams from the same building.

Sources

McDonald's FY2024 Form 10-K

confidence: verified · every bit is fact-checked before it ships

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