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McDonald’s Revenue by Segment (2015-2021)

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This statistic highlights McDonald’s Revenue by Segment from 2015 onwards, split across the United States, International Operated Markets and International Developmental Licensed Markets.
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This statistic highlights McDonald’s Revenue by Segment from 2015 onwards, split across the United States, International Operated Markets and International Developmental Licensed Markets.

McDonald’s Revenue by Segment

McDonald’s restaurants are franchised and operated by the company in 119 countries, offering a locally-relevant menu of high-quality food and beverages. They operate and franchise around 39,160 restaurants worldwide, out of these 93% are franchised.

Segment Revenue in Q1 2020 Revenue in Q4 2020 Revenue in Q1 2021 Revenue Share in Q1 2021
International Developed Licensed Markets & Corporates $439.1 $470.1 $492.9 10%
International Operated Markets $2404.3 $2651.1 $2556.2 50%
United States $1871 $2016.5 $2075.5 41%
 Total $4714.4 $5137.7 $5124.6 100%

(All figures in millions, except percentages)

Mcdonald’s total revenue grew from $4714.4 million in Q1 2020 to $5124.6 million in Q1 2021, marking an 8.7% increase on a year-on-year basis. However, it recorded a fall of 0.3% from $5137.7 million in the subsequent quarter.

United States

The United States contributed to 41% of total revenue. The revenue from the United States stood at $2075.5 million in Q1 2021, which was a 10.9% increase when compared to Q1 2020, where it was $1871 million and a 2.9% increase compared to Q4 2020 where it was $2016.5 million. The comparable revenue growth was aided by the Company’s strong national menu and marketing capabilities and growth in delivery and digital platforms. As of March 31, 2021, this segment is 95% franchised.

International Operated

International Operated Markets include countries or markets in which the company operates and franchises restaurants. In Q1 2021, this segment accounted for 50% of McDonald’s revenue amounting to $2556.2 million. The revenue during this period saw a growth of 6.3% compared to $2404.3 million in Q1 2020, but a fall of 3.6% compared to $ 2651.1 million earned in Q4 2020. Strong comparative revenue from the United Kingdom, Australia, and Canada was partially offset by significantly negative comparable revenues from France and Germany.  COVID-19 limits on restaurant operations, enforced at various government levels, continued to influence comparable sales in numerous markets.

As of March 31, 2021, this segment is 84% franchised. Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the United Kingdom are some of the countries in which McDonald’s operates.

International Developmental Licensed Markets & Corporate

International Developmental Licensed Markets & Corporate segment comprises of developmental and affiliated markets. According to developmental license or affiliate arrangement, the licensee is in charge of operations and management of the business, providing capital, and developing and opening new restaurants. McDonald’s generally receives an initial fee on the inauguration of the new restaurant or on grant of a new license, and royalties based on a percentage of sales. Corporate activities of McDonald’s are reported in this segment.

The revenue from this segment grew by 12.3% from $439.1 million in Q1 2020 to $492.9 million in Q1 2021. This was also a 4.9% increase from  $470.1 in Q4 2020. Throughout the quarter, revenues improved sequentially. China and Japan were the primary drivers of the strong quarterly comparable sales. This segment contributed to 10% of the total revenue.

As of March 31, 2021, this segment is 98% franchised.

Company Overview

McDonald’s Corporation is a chain of American fast-food restaurants, that was formed in 1940 as a restaurant in San Bernardino, California, by Richard and Maurice McDonald. In 1948, the brothers established the “Speedee Service System,” expanding on the foundations of modern fast-food restaurants. Ray Kroc, a businessman, joined the company as a franchise agent in 1955 and later went on to buy the McDonald brothers’ franchise.

McDonald’s used to be headquartered in Oak Brook, Illinois, but in June 2018, the company relocated its global headquarters to Chicago.

McDonald’s operates in 120 countries worldwide and serves more than 69 million customers per day.McDonald’s has the ninth-highest worldwide brand valuation as of 2020.

Burgers, various types of chicken, chicken sandwiches, French fries, soft drinks, breakfast dishes, and desserts are the most popular items sold at McDonald’s. McDonald’s offers salads, vegetarian options, wraps, and other regional specialties in most markets. McDonald’s sells the McRib sandwich on a seasonal basis. Some argue that McRib’s seasonality contributes to its popularity.

McDonald’s restaurants provide counter and drive-through service, as well as inside and outdoor seating.   In many countries McDrive has dedicated stations for placing, paying for, and picking up orders, however, the latter two stages are frequently integrated.

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