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

McDonald’s Corporation (NYSE:MCD) is included among the Dividend Growth Stocks: 25 Aristocrats.

McDonald’s Corporation (NYSE:MCD) raised its dividend last October for the 49th straight year, keeping it on pace to reach Dividend King status in 2026. That consistency stands out at a time when the restaurant industry is under pressure from softer consumer spending. Sit-down chains that rely on the dining experience have felt the most strain. Restaurants built around speed, convenience, and value have held up far better.

In the third quarter of 2025, McDonald’s delivered solid results. Comparable sales increased 3.6%, while systemwide sales rose 8% from the prior year. Systemwide sales capture the performance of both company-owned and franchised restaurants, offering a clearer view of how the brand is doing across its footprint.

The franchise model is central to McDonald’s strength. About 95% of its roughly 44,000 locations in more than 100 countries are run by independent operators, not the company itself.

Those franchisees tap into McDonald’s Corporation (NYSE:MCD)’s global brand, supply chain, marketing, and business model that has been tested for decades. In exchange, they pay upfront fees, rent, royalties, and other ongoing costs. That setup leaves McDonald’s more insulated from shifts in consumer spending and helps drive higher margins than chains that own and operate all of their restaurants.

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Disclosure: None.