How does McDonald's make money?
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The Secret: What's McDonald's often called, beyond a burger company?
A real-estate company. McDonald's owns or leases much of the land under its restaurants and charges franchisees rent plus royalties. Rent is a large, steady share of its revenue. Source: McDonald's 10-K (franchised revenues: rent and royalties)
Why They Stay: Why do customers keep coming back?
Same taste, speed and price everywhere. Predictability is the product. Franchise manuals standardize everything so a traveler knows exactly what they'll get. Source: Wikipedia – McDonald's
Why They Leave: What has pushed regulars away recently?
Menu prices rising faster than 'cheap fast food' expectations. Value is the promise. In 2024 McDonald's said lower-income customers were cutting visits after price rises, and it answered with a $5 meal deal. Source: CNBC – McDonald's executives say prices are too high (July 2024)