Franchise Directory

"Billions served," indeed. McDonald's is the world's #1 fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in almost 120 countries. (Nearly 14,000 Golden Arches locations are in the US.) The popular chain is well-known for its Big Macs, Quarter Pounders, and Chicken McNuggets. Most of its outlets are free-standing units, but McDonald's also has many quick-service kiosk units located in airports and retail areas. Each unit gets its food and packaging from approved suppliers and uses standardized procedures to ensure that a Big Mac purchased in Pittsburgh tastes the same as one bought in Beijing. More than 75% of its restaurants are run by franchisees or affiliates.

Although consumers are cutting back on dining out, McDonald’s was still able to grow profits in 2009. The company’s value meals helped boost sales at its franchises, as did adding innovative new menu items like the Angus burger.

McDonald’s is a franchise icon. It’s the company most people think of when they think of franchising, so it’s no wonder the chain ranked #3 in brand awareness and consistently places high in most franchise rankings. But like many of the top companies on our list, its financial strength ranking dropped this year, going from #33 to #156.

On the plus side, the company’s growth ranking improved from #132 last year to #77, partly thanks to continuing efforts to refranchise company-owned stores.

Last Year’s AllStar Rank: 12

Full Disclosure Award
This company gets a nod for disclosing financial performance representations in Item 19 of its Franchise Disclosure Document (FDD). For an explanation of why this is important, read The Importance of Item 19 in the Franchise Disclosure Document.