McDonald's Corporation (MCD)

McDonald's is in essence a landlord and brand owner: nearly all restaurants belong to franchisees, and the company collects royalties and rent.

The overwhelming majority of outlets are franchised. The company owns or leases the underlying real estate and sublets it to the operator, collecting both a percentage of sales and a rent payment. That structure produces very high margins and predictable cash flow: it tracks restaurant turnover while carrying almost none of the restaurants' operating costs.

The key metric is comparable sales at existing restaurants. Growth comes from price, menu renewal, digital channels and delivery; in recent years the app and partner services have supplied a significant share of orders. The loyalty programme turns a one-off visit into a repeat one and has become a growth tool in its own right.

Risks are consumer-driven and geographic: the network spans the world, so currency moves and local boycotts appear in the accounts. During inflation the company gains from customers trading down out of pricier restaurants, but runs into a ceiling on further price rises. McDonald's has raised its dividend for decades.