McDonald's

Reader's Guide

McDonald's significance lies in its pioneering of the fast-food business model through the Speedee Service System, which emphasized efficiency and standardization. Its franchising strategy, driven by Ray Kroc, enabled rapid global expansion, making the chain a symbol of globalization and the spread of the American way of life. The company generates revenue from company-operated restaurants and from rent, royalties, and fees paid by franchisees, owning about 56% of the land and 80% of the restaurant buildings in its consolidated markets. The company has faced criticism concerning nutritional content, animal treatment, environmental impact, and employee wages and working conditions. Its menu adaptations to local markets, such as millet-based buns in India and beer in Germany, illustrate its global flexibility.

Did You Know?

• The original mascot of McDonald's was a hamburger-headed chef named Speedee, who was gradually phased out starting in the mid-1960s and replaced by Ronald McDonald, not directly by the Golden Arches.
• In 2021, the company cut value meals and cheaper items from its menu as part of a focus on higher-priced items.

From a San Bernardino Diner to a Global Icon

Richard and Maurice McDonald set out with a simple ambition: to earn one million dollars before they each turned fifty. They dismissed their twenty carhops, swapped silverware and plates for paper wrappings and cups, and pared the menu down to just nine items—hamburgers, cheeseburgers, three soft drink flavors in a single twelve-ounce size, milk, coffee, potato chips, and pie. Richard McDonald later summarized the philosophy as speed, lower prices, and volume. The system drew on principles that White Castle had been practicing for over two decades.

Ray Kroc and the Road to 45,000 Restaurants

Kroc proved to be a relentless commercial force. With that purchase, Kroc launched the chain's domestic and international expansion. McDonald's has since become a widely recognized symbol of globalization and the export of American consumer culture.

The Menu: From Big Macs to McPlant

At its core, McDonald's sells hamburgers, cheeseburgers, French fries, chicken products, soft drinks, shakes, breakfast items, and desserts. The Big Mac and the French fries remain the most iconic offerings worldwide. Seasonal and regional items add variety: the McRib sandwich appears periodically, a Shamrock Shake arrives each March for Saint Patrick's Day, and New Mexico customers can find a Hatch Green Chile Double Cheeseburger topped with local green chile. In 2021 the company trimmed value meals and lower-priced items from the menu, shifting emphasis toward higher-margin products. Under CEO Steve Easterbrook, who took the helm in 2015, the U.S. menu was streamlined from nearly 200 items. The company eliminated high-fructose corn syrup from hamburger buns and swapped artificial preservatives in Chicken McNuggets for pea starch, rice starch, and powdered lemon juice. burgers—including the Big Mac and Quarter Pounder with Cheese—were free of artificial preservatives, flavors, and colors, though pickles retained an artificial preservative that customers could request to omit. In November 2020, McDonald's announced McPlant, a plant-based burger.

Franchise Economics, Workforce, and Controversies

McDonald's earns revenue in two main ways: direct sales at company-operated restaurants and, more significantly, rent, royalties, and fees collected from franchisees. At the end of 2025 the company owned roughly 56 percent of the land and 80 percent of the restaurant buildings within its consolidated markets, a structure that keeps a large share of franchisee income flowing back to the corporation. The brand's footprint has not been without controversy. Critics have raised concerns about the nutritional quality of the food, the treatment of animals in the supply chain, the company's environmental footprint, and the wages and working conditions of restaurant employees. locations it wholly owned, and during the COVID-19 pandemic it closed most seating and all play areas in American restaurants, pivoting toward drive-through, curbside pickup, and online delivery.

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