United StatesWide moat

McDonald's (MCD) — moat facet

A 54% margin on a market adding almost no restaurants: a toll road whose traffic is now falling.

The United States is McDonald's second-largest segment by revenue and its most profitable per dollar. In 2025 it had revenue of $10,825 million and operating income of $5,808 million, a margin of 53.7% 1. That is 40% of the company's revenue and 47% of its operating income 2.

U.S. segment operating income ($m)$4,069m2019$3,789m2020$4,755m2021$5,136m2022$5,694m2023$5,733m2024$5,808m2025McDonald's Forms 10-K FY2021, FY2023, FY2025, segment notes
Up 40% from 2019 to 2023, then 2% in the next two years.

What sits inside it is mostly other people's restaurants. The segment was 95% franchised at the end of 2025, with 13,706 restaurants 3. Franchisees rang up $51,946 million of sales; McDonald's collected $7,371 million of franchised revenue from them, rent and royalty combined, and kept $6,078 million of it as franchised margin after occupancy costs 4. The company's own restaurants sold $3,115 million and earned a margin of $360 million, 11.6%, down from 15.2% two years earlier 5. The segment's economics are the rent roll. The restaurants McDonald's runs itself are a small and weakening part of it.

The history of the line is refranchising. McDonald's sold company restaurants to operators through the late 2010s, and the United States reported revenue of $7,843 million in 2019 on the basis used then 6. On the restated basis in later filings, the segment had revenue of $8,002.8 million and operating income of $4,068.7 million in 2019 7; by 2025 revenue had grown about 5.2% a year 8, and operating income had risen to $5,808 million 9.

The growth came in a burst and then stopped. U.S. comparable sales rose 8.7% in 2023, 0.2% in 2024 and 2.1% in 2025 10. Segment operating income was $5,694 million in 2023 and $5,808 million in 2025 11, 2% in two years, and the margin held at about 54% throughout 12. In the June 2026 quarter U.S. comparable sales rose 0.8%, driven by check growth and partly offset by negative comparable guest counts 13; segment revenue rose to $2,827 million from $2,781 million and operating income to $1,573 million from $1,527 million 14. Fewer visits, each spending more, is a pattern that does not run indefinitely.

The estate is barely growing. The United States had 13,457 restaurants at the end of 2023 15 and 13,769 by June 2026 16. Capital spending in the segment still rose from $963 million in 2023 to $1,277 million in 2025 17, most of it on existing buildings rather than new ones.

The outlook turns on the franchisees. The September 2026 plan commits about $8.5 billion of partnering support through 2036, largely as rent relief, against a target of roughly $100,000 a year of improved cash flow for the average U.S. restaurant 18. Rent is the largest part of what U.S. franchisees pay, so the support comes straight out of this segment's best line. The mechanism is covered in Franchisee Relations Can Turn Tense.

A 54% margin on a market adding almost no restaurants is a toll road, not a growth business. The number that would change that verdict is U.S. comparable guest counts: positive for a full year, and the segment compounds again; negative while the rent relief is paid, and its margin will fall below 50% within the plan's own horizon.

Moat trajectory: Holding steady

Margin held at about 54% from 2023 to 2025 while comparable guest counts turned negative in 2026.

The number that tests this moat
Moat Explorer calc
U.S. segment operating margin, latest quarter
55.6% in Q2 2026 ($1,573m on $2,827m)

The rent relief comes out of this margin; below 50% would mean the support is costing more than the efficiency it buys.

How it's calculated: Segment operating income / segment revenue, Q2 2026
Source: McDonald's Form 10-Q, Q2 2026 ↗
References
  1. ReportedIn 2025 it had revenue of $10,825 million and operating income of $5,808 million, a margin of 53.7% .
    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 40% of the company's revenue and 47% 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 was 95% franchised at the end of 2025, with 13,706 restaurants .
    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. ReportedFranchisees rang up $51,946 million of sales; McDonald's collected $7,371 million of franchised revenue from them, rent and royalty combined, and kept $6,078 million of it as franchised margin after occupancy costs .
    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. Moat Explorer calcThe company's own restaurants sold $3,115 million and earned a margin of $360 million, 11.6%, down from 15.2% two years earlier .
    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 ↗
  6. ReportedMcDonald's sold company restaurants to operators through the late 2010s, and the United States reported revenue of $7,843 million in 2019 on the basis used then .
    McDonald's Form 10-K FY2019 - revenues by segment 2017-2019 as reported then; $850 million pre-tax gain on the sale of the China and Hong Kong businesses in 2017 — FY2017-FY2019 · publ. February 2020 · source ↗
  7. ReportedOn the restated basis in later filings, the segment had revenue of $8,002.8 million and operating income of $4,068.7 million in 2019 ; by 2025 revenue had grown about 5.2% a year , and operating income had risen to $5,808 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 ↗
  8. Moat Explorer calcOn the restated basis in later filings, the segment had revenue of $8,002.8 million and operating income of $4,068.7 million in 2019 ; by 2025 revenue had grown about 5.2% a year , and operating income had risen to $5,808 million .
    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 ↗
  9. ReportedOn the restated basis in later filings, the segment had revenue of $8,002.8 million and operating income of $4,068.7 million in 2019 ; by 2025 revenue had grown about 5.2% a year , and operating income had risen to $5,808 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 ↗
  10. ReportedU.S. comparable sales rose 8.7% in 2023, 0.2% in 2024 and 2.1% 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 ↗
  11. ReportedSegment operating income was $5,694 million in 2023 and $5,808 million in 2025 , 2% in two years, and the margin held at about 54% throughout .
    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 ↗
  12. Moat Explorer calcSegment operating income was $5,694 million in 2023 and $5,808 million in 2025 , 2% in two years, and the margin held at about 54% throughout .
    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 ↗
  13. ReportedIn the June 2026 quarter U.S. comparable sales rose 0.8%, driven by check growth and partly offset by negative comparable guest counts ; segment revenue rose to $2,827 million from $2,781 million and operating income to $1,573 million from $1,527 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 ↗
  14. ReportedIn the June 2026 quarter U.S. comparable sales rose 0.8%, driven by check growth and partly offset by negative comparable guest counts ; segment revenue rose to $2,827 million from $2,781 million and operating income to $1,573 million from $1,527 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 ↗
  15. ReportedThe United States had 13,457 restaurants at the end of 2023 and 13,769 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 ↗
  16. ReportedThe United States had 13,457 restaurants at the end of 2023 and 13,769 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 ↗
  17. ReportedCapital spending in the segment still rose from $963 million in 2023 to $1,277 million in 2025 , most of it on existing buildings rather than new ones.
    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 September 2026 plan commits about $8.5 billion of partnering support through 2036, largely as rent relief, against a target of roughly $100,000 a year of improved cash flow for the average U.S. restaurant .
    McDonald's investor update (8-K exhibit 99.1), 23 September 2026 - about $8.5bn of NEXT partnering support through 2036 as rent relief and capital support; about $100,000 a year of cash-flow benefit for the average U.S. restaurant — September 2026 · publ. 23 September 2026 · source ↗
Sources
Generated September 23, 2026