Every week we provide insights into popular assets and hot questions, so you can easily learn more about the investment market in bite‑sized pieces.
In this edition of Markets in Focus, we delve into McDonald’s – Food and Real Estate, a company that’s much more than just burgers and fries.
Take a look below or watch a short video: https://www.youtube.com/shorts/PEN2Hx0E1gk
What Is McDonald’s
McDonald’s Corporation is a global powerhouse in the fast‑food industry, easily recognized by its golden arches and widespread presence. Founded in 1940 by Richard and Maurice McDonald as a small hamburger stand, the company revolutionized fast food with the “Speedee Service System” — an early model for quick-service restaurants.
The real growth, however, accelerated under Ray Kroc, who joined in 1955 as a franchise agent and eventually bought the company. Under his leadership, McDonald’s expanded massively: today it operates over 43,000 restaurants in more than 100 countries.
Is McDonald’s a Real Estate Company?
One of McDonald’s most powerful strategic advantages lies in its real estate business. The company owns a large share of the land and buildings of its restaurants, especially those run by franchisees.
- According to its strategy, McDonald’s owns roughly 80% of its restaurant buildings and a significant part of the land.
- This gives McDonald’s stable rental income: it leases properties to its franchisees, which helps ensure consistent cash flow and long-term financial strength.
- This business model also means McDonald’s benefits from real estate value appreciation and has more control over prime site selection.
How Is McDonald’s Stock Performing
- McDonald’s has a strong dividend track record. In October 2025, it raised its quarterly dividend by 5% to $1.86 per share, which equates to an annual payout of $7.44.
- The current dividend yield is around 2.4%, making it attractive for income-focused and long-term investors.
- Real estate contributes significantly to McDonald’s profitability: part of its operating income comes from leasing its properties, not just from food sales.
- Thanks to its real estate strength and stable cash flows, McDonald’s is seen as a resilient investment with a balanced model: retail + property.
Why McDonald’s Is Compelling to Investors
- Dual Business Model
- Fast-food: Well-known brand, global footprint, consistent demand.
- Real estate: Owning prime restaurant sites gives McDonald’s a recurring, stable income through rent.
- Financial Stability & Growth
- With strong rental income, McDonald’s is less exposed to margin volatility in food operations.
- Property ownership provides long-term asset value and inflation protection.
- Shareholder-Friendly Policy
- Regular dividend increases (McDonald’s has a long history of raising its dividend).
- Healthy cash flow allows the company to reward shareholders while investing in expansion.
Trade McDonald’s with Change
If you’re interested in McDonald’s as an investment — not just for its food but also for its strategic real estate — you can trade McDonald’s CFDs in the Change app with 1× or 5× leverage.
Trading hours: Monday to Friday, 13:30–20:00 (GMT).
Bon appétit - and happy trading!
