International Operated MarketsWide moat

McDonald's (MCD) — moat facet

The largest segment, twice knocked back, now carrying most of the company's capital spending.

The International Operated Markets are McDonald's largest segment. In 2025 they had revenue of $13,633 million and operating income of $6,382 million, a margin of 46.8% 1. That is 51% of the company's revenue and 52% of its operating income 2. The segment covers the markets where McDonald's owns and runs restaurants as well as franchising them, among them Australia, Canada, France, Germany, Italy, Poland, Spain and the United Kingdom 3.

International Operated Markets operating income ($m)$4,789m2019$3,315m2020$5,131m2021$3,926m2022$5,832m2023$5,946m2024$6,382m2025McDonald's Forms 10-K FY2021, FY2023, FY2025; 2022 includes $1,281m of Russia charges
Two falls, the pandemic and Russia, and a new high each time after.

It is the same landlord model as at home, with more restaurants still run by the company. The segment was 89% franchised at the end of 2025 4. Franchised revenue was $7,279 million on $42,440 million of franchised sales, and franchised margins $5,954 million 5. Company-operated restaurants sold $6,131 million and earned $1,031 million 6, a margin of 16.8% against 11.6% in the United States 7. The company restaurants abroad earn more than the ones at home.

The history is two shocks. Revenue was $11,480.1 million in 2019 and $9,570.7 million in 2020, when the pandemic closed restaurants; operating income fell from $4,789.0 million to $3,315.1 million 8. It recovered to $12,219.8 million and $5,130.6 million in 2021 9, and then McDonald's left Russia. The sale cost $1,281 million of pre-tax charges in 2022 and closed 855 restaurants, and segment operating income fell to $3,926 million 10. By 2023 it was $5,832 million 11.

Growth since then has been steady and partly borrowed from currency. Comparable sales rose 9.2% in 2023, fell 0.2% in 2024 and rose 3.2% in 2025 12. Systemwide sales grew 8% in 2025, or 5% excluding currency 13. From 2019 to 2025 revenue compounded at about 2.9% a year, the slowest of the three segments 14. In the June 2026 quarter comparable sales rose 1.5%, led by Germany, Australia and the U.K. and partly offset by France 15; segment revenue rose to $3,603 million from $3,462 million and operating income to $1,723 million from $1,635 million 16.

The estate is growing faster than at home. The segment had 10,263 restaurants at the end of 2023 17 and 10,918 by June 2026 18. Capital spending is where it stands out: $2,048 million in 2025, from $1,340 million in 2023 19, 61% of the company's total 20. Segment assets rose from $23,491 million to $27,487 million in 2025 21, and operating income on those assets was about 23%, against about 25% in the United States 22.

The segment earns more per dollar of franchised sales than any other, because McDonald's still owns much of the real estate and runs about a tenth of the restaurants itself. That is its strength and the source of its exposure: a closed market costs McDonald's the buildings as well as the royalty, as Russia showed. The figure to watch is segment operating income against capital spending. If the new spending lifts operating income faster than the 5% it managed in the June 2026 quarter, the build-out is paying; if spending keeps rising while comparable sales stay near 1%, the segment is buying growth at a lower return.

Moat trajectory: Widening

Operating income rose from $5,832m in 2023 to $6,382m in 2025, a 46.8% margin.

The number that tests this moat
Reported
International Operated Markets operating income, latest quarter
$1,723m in Q2 2026, +5% on $1,635m

Capital spending here rose 53% in two years; operating income has to grow faster than 5% for it to pay.

Source: McDonald's Form 10-Q, Q2 2026 ↗
References
  1. ReportedIn 2025 they had revenue of $13,633 million and operating income of $6,382 million, a margin of 46.8% .
    McDonald's Form 10-K FY2025 - segment note (revenue, operating income, SG&A, assets and capital expenditures by segment, 2023-2025); franchised and company-operated revenues, franchised margins and franchised sales by segment; comparable sales and restaurants by segment — FY2023-FY2025 · publ. February 2026 · source ↗
  2. Moat Explorer calcThat is 51% of the company's revenue and 52% of its operating income .
    Moat Explorer calculation from McDonald's Forms 10-K FY2019-FY2025 and Q2 2026 filings: segment shares, margins, growth rates and franchised revenue per dollar of franchised sales — FY2019 to Q2 2026 · publ. 2026-09-23 · source ↗
  3. ReportedThe segment covers the markets where McDonald's owns and runs restaurants as well as franchising them, among them Australia, Canada, France, Germany, Italy, Poland, Spain and the United Kingdom .
    McDonald's Form 10-K FY2025 - segment note (revenue, operating income, SG&A, assets and capital expenditures by segment, 2023-2025); franchised and company-operated revenues, franchised margins and franchised sales by segment; comparable sales and restaurants by segment — FY2023-FY2025 · publ. February 2026 · source ↗
  4. ReportedThe segment was 89% franchised at the end of 2025 .
    McDonald's Form 10-K FY2025 - segment note (revenue, operating income, SG&A, assets and capital expenditures by segment, 2023-2025); franchised and company-operated revenues, franchised margins and franchised sales by segment; comparable sales and restaurants by segment — FY2023-FY2025 · publ. February 2026 · source ↗
  5. ReportedFranchised revenue was $7,279 million on $42,440 million of franchised sales, and franchised margins $5,954 million .
    McDonald's Form 10-K FY2025 - segment note (revenue, operating income, SG&A, assets and capital expenditures by segment, 2023-2025); franchised and company-operated revenues, franchised margins and franchised sales by segment; comparable sales and restaurants by segment — FY2023-FY2025 · publ. February 2026 · source ↗
  6. ReportedCompany-operated restaurants sold $6,131 million and earned $1,031 million , a margin of 16.8% against 11.6% in the United States .
    McDonald's Form 10-K FY2025 - segment note (revenue, operating income, SG&A, assets and capital expenditures by segment, 2023-2025); franchised and company-operated revenues, franchised margins and franchised sales by segment; comparable sales and restaurants by segment — FY2023-FY2025 · publ. February 2026 · source ↗
  7. Moat Explorer calcCompany-operated restaurants sold $6,131 million and earned $1,031 million , a margin of 16.8% against 11.6% in the United States .
    Moat Explorer calculation from McDonald's Forms 10-K FY2019-FY2025 and Q2 2026 filings: segment shares, margins, growth rates and franchised revenue per dollar of franchised sales — FY2019 to Q2 2026 · publ. 2026-09-23 · source ↗
  8. ReportedRevenue was $11,480.1 million in 2019 and $9,570.7 million in 2020, when the pandemic closed restaurants; operating income fell from $4,789.0 million to $3,315.1 million .
    McDonald's Form 10-K FY2021 - segment note, revenue and operating income by segment 2019-2021 (restated basis) — FY2019-FY2021 · publ. February 2022 · source ↗
  9. ReportedIt recovered to $12,219.8 million and $5,130.6 million in 2021 , and then McDonald's left Russia.
    McDonald's Form 10-K FY2021 - segment note, revenue and operating income by segment 2019-2021 (restated basis) — FY2019-FY2021 · publ. February 2022 · source ↗
  10. ReportedThe sale cost $1,281 million of pre-tax charges in 2022 and closed 855 restaurants, and segment operating income fell to $3,926 million .
    McDonald's Form 10-K FY2023 - segment operating income 2021-2023; $1,281 million of pre-tax charges on the sale of the Russia business in 2022 and 855 restaurant closures — FY2021-FY2023 · publ. February 2024 · source ↗
  11. ReportedBy 2023 it was $5,832 million .
    McDonald's Form 10-K FY2023 - segment operating income 2021-2023; $1,281 million of pre-tax charges on the sale of the Russia business in 2022 and 855 restaurant closures — FY2021-FY2023 · publ. February 2024 · source ↗
  12. ReportedComparable sales rose 9.2% in 2023, fell 0.2% in 2024 and rose 3.2% in 2025 .
    McDonald's Form 10-K FY2025 - segment note (revenue, operating income, SG&A, assets and capital expenditures by segment, 2023-2025); franchised and company-operated revenues, franchised margins and franchised sales by segment; comparable sales and restaurants by segment — FY2023-FY2025 · publ. February 2026 · source ↗
  13. ReportedSystemwide sales grew 8% in 2025, or 5% excluding currency .
    McDonald's Form 10-K FY2025 - segment note (revenue, operating income, SG&A, assets and capital expenditures by segment, 2023-2025); franchised and company-operated revenues, franchised margins and franchised sales by segment; comparable sales and restaurants by segment — FY2023-FY2025 · publ. February 2026 · source ↗
  14. Moat Explorer calcFrom 2019 to 2025 revenue compounded at about 2.9% a year, the slowest of the three segments .
    Moat Explorer calculation from McDonald's Forms 10-K FY2019-FY2025 and Q2 2026 filings: segment shares, margins, growth rates and franchised revenue per dollar of franchised sales — FY2019 to Q2 2026 · publ. 2026-09-23 · source ↗
  15. ReportedIn the June 2026 quarter comparable sales rose 1.5%, led by Germany, Australia and the U.K. and partly offset by France ; segment revenue rose to $3,603 million from $3,462 million and operating income to $1,723 million from $1,635 million .
    McDonald's Q2 2026 results release (8-K exhibit 99.1) - comparable sales by segment and their drivers — Q2 2026 · publ. 4 August 2026 · source ↗
  16. ReportedIn the June 2026 quarter comparable sales rose 1.5%, led by Germany, Australia and the U.K. and partly offset by France ; segment revenue rose to $3,603 million from $3,462 million and operating income to $1,723 million from $1,635 million .
    McDonald's Form 10-Q, quarter ended 30 June 2026 - segment revenue, SG&A, operating income and capital expenditures for Q2 and H1 2026 — Q2 2026 · publ. August 2026 · source ↗
  17. ReportedThe segment had 10,263 restaurants at the end of 2023 and 10,918 by June 2026 .
    McDonald's Form 10-K FY2025 - segment note (revenue, operating income, SG&A, assets and capital expenditures by segment, 2023-2025); franchised and company-operated revenues, franchised margins and franchised sales by segment; comparable sales and restaurants by segment — FY2023-FY2025 · publ. February 2026 · source ↗
  18. ReportedThe segment had 10,263 restaurants at the end of 2023 and 10,918 by June 2026 .
    McDonald's Q2 2026 financial supplement (8-K exhibit 99.2) - restaurants by segment and market at 30 June 2026 — Q2 2026 · publ. 4 August 2026 · source ↗
  19. ReportedCapital spending is where it stands out: $2,048 million in 2025, from $1,340 million in 2023 , 61% of the company's total .
    McDonald's Form 10-K FY2025 - segment note (revenue, operating income, SG&A, assets and capital expenditures by segment, 2023-2025); franchised and company-operated revenues, franchised margins and franchised sales by segment; comparable sales and restaurants by segment — FY2023-FY2025 · publ. February 2026 · source ↗
  20. Moat Explorer calcCapital spending is where it stands out: $2,048 million in 2025, from $1,340 million in 2023 , 61% of the company's total .
    Moat Explorer calculation from McDonald's Forms 10-K FY2019-FY2025 and Q2 2026 filings: segment shares, margins, growth rates and franchised revenue per dollar of franchised sales — FY2019 to Q2 2026 · publ. 2026-09-23 · source ↗
  21. ReportedSegment assets rose from $23,491 million to $27,487 million in 2025 , and operating income on those assets was about 23%, against about 25% in the United States .
    McDonald's Form 10-K FY2025 - segment note (revenue, operating income, SG&A, assets and capital expenditures by segment, 2023-2025); franchised and company-operated revenues, franchised margins and franchised sales by segment; comparable sales and restaurants by segment — FY2023-FY2025 · publ. February 2026 · source ↗
  22. Moat Explorer calcSegment assets rose from $23,491 million to $27,487 million in 2025 , and operating income on those assets was about 23%, against about 25% in the United States .
    Moat Explorer calculation from McDonald's Forms 10-K FY2019-FY2025 and Q2 2026 filings: segment shares, margins, growth rates and franchised revenue per dollar of franchised sales — FY2019 to Q2 2026 · publ. 2026-09-23 · source ↗
Sources
Generated September 23, 2026