McDonald’s is a publicly-traded company, meaning it’s owned by its shareholders. The company’s shareholders include institutional investors and individuals who own McDonald’s stock. But this is just the beginning of the McDonald’s ownership story. Let’s break down exactly who owns McDonald’s, how the company is structured, and what it means for the fast-food empire.

A quick history of McDonald’s

Before we dive deeper into who owns McDonald’s today, let’s take a quick look at how it all began. The McDonald brothers, Richard and Maurice, started the first McDonald’s restaurant in San Bernardino, California, in 1940. One of the unique things about the business at that time was its so-called “Speedee Service System.” The main focus of the brothers was to improve their efficiency and consistency.

Enter Ray Kroc, a milkshake machine salesman who saw the true potential in the McDonald’s model. In 1955, Kroc opened the first McDonald’s franchise in Des Plaines, Illinois, and eventually bought out the brothers in 1961 for $2.7 million. From there, he expanded the brand into the global powerhouse we all know and love today.

Who owns McDonald’s. First brothers restaurant
First Brothers restaurant Source httpscorporatemcdonaldscom

Who owns McDonald’s? Current ownership structure

While the company began as a lone restaurant owned by the McDonald brothers, Ray Kroc convinced them to opt for a franchise model in the 50s. The company underwent several changes in management and structure over the years, and today, McDonald’s is a publicly traded company on the NYSE.

So, what does it mean? Well, in simple words, it means that whoever owns McDonald’s stock owns a piece of the company. People like you who have some McDonald’s stock can stake a claim of ownership, but they don’t have a significant influence as they have a minuscule stock of the entire company.

So, who owns McDonald’s in the sense of having the most significant influence? Let’s break it down:

Institutional investors

These are organizations that invest money on behalf of other people who are willing to invest in a company. Institutional investors essentially pool the money from various investors to purchase stocks. In the case of McDonald’s, institutional investors own 72% of total shares.

Here are some of the most important institutional investors who own a significant chunk of McDonald’s stock:

  • Vanguard Group: It is one of the biggest asset management companies in the world. As of 2024, it is the largest shareholder with 9.6% shares.
  • BlackRock: Another major player in the investment world, BlackRock, owns 5.6% of McDonald’s stock.
  • State Street Corporation: This financial services company is another top institutional investor in McDonald’s. The company holds 4.7% shares.
Who owns McDonald’s. Institutional investors

Individual shareholders

Apart from these institutional investors, individuals also hold McDonald’s stock. Some of the most important ones are:

  • McDonald’s employees and executives: Many McDonald’s employees, including top executives, own shares in the company.
  • Retail investors: Anyone like you can purchase shares of McDonald’s on the stock market, making them part-owners of the company.

How does McDonald’s ownership work?

Since McDonald’s is a publicly-traded company, its ownership is spread out among millions of shareholders. As you can imagine, not all shareholders have the same level of influence.

Institutional investors like Vanguard and BlackRock wield the most influence in company decisions as they hold large amounts of shares. These firms can dictate terms in the company, such as appointing the board of directors, approving mergers and acquisitions, and more.

Who runs McDonald’s?

So, the shareholders technically own McDonald’s, but what about the day-to-day operations? Well, the company has executives and a board of directors to oversee the whole operation.

Here’s a quick rundown of how this works:

  • CEO and Executives: The Chief Executive Officer (CEO) and other top executives are responsible for running the company. Currently, Chris Kempczinski is the CEO of McDonald’s.
  • Board of Directors: Shareholders elect the executives who will sit on the board of directors. This board is responsible for making significant decisions, like setting company policy, hiring executives, and ensuring the company meets its goals. The board has individuals with experience in various fields, from finance to retail to technology.
Who owns McDonald’s. CEO and Executives

Who owns McDonald’s franchises?

So, what about that store down the street? Who owns that McDonald’s restaurant? You will be surprised to know that a significant portion of McDonald’s restaurants are not owned by the company. These stores and restaurants are owned by individual franchisees.

These franchisees buy the right to operate a McDonald’s restaurant and pay the company for the use of its brand, systems, and products.

Here’s a snapshot of how this works:

  • Franchise model: McDonald’s operates on a franchise model. What it means is that you can purchase the rights to operate a McDonald’s restaurant. You pay an initial franchise fee and ongoing royalties to McDonald’s Corporation.
  • Independent owners: If you are a McDonald’s franchisee, you are an independent owner. While you will own your restaurant, you must stick to McDonald’s standards and practices.

Why should you care about who owns McDonald’s?

Understanding who owns McDonald’s will help you see how the company operates and makes decisions. The ownership structure, with its mix of institutional investors, individual shareholders, and franchisees, allows McDonald’s to remain a dominant force in the fast-food industry. It also ensures that the company is accountable to its investors and customers.

In conclusion, when you ask, “Who owns McDonald’s?” the answer is a mix of institutional investors, individual shareholders, and franchisees. Each plays a crucial role in maintaining and growing the global presence of the Golden Arches.

Sources

  1. https://www.history.com/news/how-mcdonalds-became-fast-food-giant 
  2. https://corporate.mcdonalds.com/corpmcd/our-company/who-we-are/our-history.html 
  3. https://finance.yahoo.com/news/72-ownership-shares-mcdonalds-corporation-234742585.html
  4. https://corporate.mcdonalds.com/corpmcd/our-company/who-we-are/our-leadership.html 
  5. https://www.forbes.com/sites/forbescoachescouncil/2024/05/07/is-now-the-time-to-buy-a-franchise