McDonald’s (MCD) Business Model Drives Resilience Across Market Cycles

McDonald’s Corporation (NYSE:MCD) raised its dividend past October for the 49th consecutive year, keeping it connected gait to scope Dividend King presumption successful 2026. That consistency stands retired astatine a clip erstwhile the edifice manufacture is nether unit from softer user spending. Sit-down chains that trust connected the eating acquisition person felt the astir strain. Restaurants built astir speed, convenience, and worth person held up acold better.

In the 3rd 4th of 2025, McDonald’s delivered coagulated results. Comparable income accrued 3.6%, portion systemwide income roseate 8% from the anterior year. Systemwide income seizure the show of some company-owned and franchised restaurants, offering a clearer presumption of however the marque is doing crossed its footprint.

The franchise exemplary is cardinal to McDonald’s strength. About 95% of its astir 44,000 locations successful much than 100 countries are tally by autarkic operators, not the institution itself.

Those franchisees pat into McDonald’s Corporation (NYSE:MCD)’s planetary brand, proviso chain, marketing, and concern exemplary that has been tested for decades. In exchange, they wage upfront fees, rent, royalties, and different ongoing costs. That setup leaves McDonald’s much insulated from shifts successful user spending and helps thrust higher margins than chains that ain and run each of their restaurants.

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Disclosure: None.