The Most Profitable Fast Food Restaurant Chain In The World Is Also A Favorite

Fast food is going nowhere. Considering the amount of money that Americans spend on fast food every year, it is completely understandable that the industry has generated $412.7 billion in sales over the five years leading up to 2025. But out of all the popular fast food chains in the country –- Starbucks, McDonald's, Wendy's, and Burger King to name a few –- which brand makes the most profits every year? No prizes for guessing, but McDonald's, a name that has grown to be synonymous with its burgers and fries, is not only a fan favorite but also sitting on top of the profits, with nearly $26 billion in revenue in 2024 at around 32% profit margins. In fact, with an estimated brand value of $40.5 billion, alongside being among the world's largest private employers, McDonald's is arguably the top restaurant company in the world today.

McDonald's was founded by the McDonald brothers way back in the 1940s, but its acceleration toward becoming the empire it currently boasts of today is often attributed to Ray Kroc. Ray Kroc was a former salesperson who became the brand's franchise agent in 1955, before buying the brand in 1961 and firmly establishing its franchise-based roadmap. Ever since, McDonald's has expanded to more than one hundred countries, serving more than 69 million customers every day.

Industry experts often claim that McDonald's is as much a real estate company as it is a fast-food-selling brand. McDonald's owns about 45% of the land and 70% of the buildings where its stores operate –- some of them at extremely prime locations like New York City's Times Square. Out of the steady income McDonald's generates from its chain of franchisees, which comprises nearly 95% of its over 40,000 stores across the globe, a majority comes in the form of rent on the property leased or sub-leased by McDonald's. Rightfully summed up in the movie based on the brand, "The Founder": "You don't build an empire off a 1.4% cut of a 15-cent hamburger; you build it by owning the land on which that burger is cooked" (per YouTube). Apart from the rent on the property, franchisees also pay royalties on the revenue generated from the stores, as well as additional expenses, such as advertising and promotions.

How has adopting this business model helped the Golden Arches rise from establishing its first franchise 70 years ago to becoming the most profitable fast food chain in the world today? Well, one of the biggest advantages the model offers is stabilizing the revenue stream for the company despite market turbulence and other day-to-day operational hiccups that affect stores. This is evident from the fact that nearly 82% of the company's profits are attributed to franchise-owned stores — while only 16% comes from outlets directly operated by McDonald's.

In an attention economy where eyeballs on a brand can be monetized into millions of dollars, a solid brand identity has certainly helped McDonald's dominate the fast food landscape for decades. By capitalizing on popular trends, with characters like Hamburglar and Ronald McDonald, and having an identifiable logo across countries, McDonald's has been able to establish a deep, emotional connection with its customers. By maintaining consistency in customer experience, no matter the location of the store, the brand has also commanded loyalty from its consumers.

Furthermore, McDonald's has also been able to instill loyalty in customers with endeavors like the MyMcDonald's Rewards Program, which was launched in 2021. The program provided customers with seamless digital integration with the brand, increasing customer engagement and ultimately sales. By offering reward points for every dollar spent, McDonald's has been able to increase the average transaction value of its customers and boost repeat visits. The company's finances back this up with nearly $6 billion in sales generated from loyalty members in the fourth quarter alone in 2023.

McDonald's has not only ridden the popular wave for decades but also continues to ride by adapting to shifts in consumer demand. Owing to competition from emerging players in the niche, such as Chipotle and Cheesecake Factory, as well as a dip in sales in early 2025, McDonald's has introduced bold new growth strategies that focus on specializing in specific products. It has also previously vowed to remove artificial ingredients and fake colors from its products, catering to the growing health-conscious sentiments of the market.