McDonald’s – I’m lovin’ it, you’re lovin’ it, we’re all lovin’ it. McDonald’s is one of the most well-known fast-food chains globally, with over 37,000 locations worldwide. It has become the face of fast food branding and a family staple no matter the country.
So, how did a company started in 1938 grow from its humble beginnings into possibly the most prominent fast-food franchising business in history?
How much does McDonald’s make in a day, a month, a year? Should you be interested in being a part of this company? Read on to find out!
How Much Money Does McDonald’s Make a Day?
Of all 14,000 outlets in the US, the average McDonald’s makes about $7000 daily. This translates to about 2.6 million dollars a year. Now, that’s a hefty amount of money!
To throw in a couple more numbers, McDonald’s as a whole earned about $23 billion in the year 2021, with a whopping 13.8% increase in US earnings, which was $7.66 billion a year before.
Costs are rising, and profits are taking a bit of a dip, especially with the pandemic. But more people are staying home, ordering in, and beginning a newer culture of more drive-thrus and curbside pickups.
Thanks to this, the overall revenue of McDonald’s continues to grow.
How Does McDonald’s Make Money?
So, McDonald’s makes a lot of money. Where does it come from?
The fast-food giant serves 68 million customers a day. While it depends on the franchise’s location and how populated the area is, we can assume that each McDonald’s sees almost two thousand customers a day.
McDonald’s is a food brand, but a business doesn’t succeed based on the food alone. No company earns approximately 2.6 million dollars a year based on selling low-margin burgers and muffins. So what’s their secret?
McDonald’s is a company that has franchised about 95% of all the outlets worldwide. They make a lot of their money by having franchisees start up their own McDonald’s outlet on properties sometimes owned by McDonald’s, generating a massive stream of income for the brand.
In other words, the Golden Arches didn’t build its riches by being a fast-food company – they’re a real-estate conglomerate.
How Much Do Other Fast-Food Chains Make?
McDonald’s is giant, but how do other large fast-food chains stack up against McDonald’s earnings?
|KFC/Taco Bell (Yum! Brands) (2020)||26 billion|
|Burger King||10 billion|
Investing in a McDonald’s Franchise
Knowing how much McDonald’s earns, would you want to try your hand at starting a McDonald’s franchise? Read on to learn about things you may want to consider when starting a franchise.
How Much Money Do I Need?
You can’t start a McDonald’s from scratch. Franchising is often given to people who have the resources and capital to open up their own franchise. This is why franchises in an area are sometimes wholly owned by corporations and not individuals.
To even be allowed to franchise a McDonald’s, you would need to pay a franchise fee of $45,000. And that is just the beginning: the cost required to set up a location to look and work just like a McDonald’s ranges from $1 million to $2.2 million.
As a franchisee, a maximum of only 60% of that cost can be covered. Franchise owners will also have to bear ongoing costs throughout their franchise ownership.
How Much Can I Earn as a Franchisee?
The average McDonald’s franchise earns about 2.6 million dollars a year. That is a large sum of money, and you may think you could potentially be making the big bucks too. But just like every investment, it is not without its risks.
The success of a franchise can depend on so many things, including the location, rent prices in the area, service, and sometimes plain luck. As a franchisee, you would have to be very involved in making your franchise a success on your own, especially if you don’t already own a multimillion-dollar corporation that owns many franchises.
The average salary for a franchise owner in the US is about 72,285 per year. However, the average McDonald’s franchisee can expect to earn a little more if their franchise is booming. If a McDonald’s franchisor manages their finances and hefty upkeep costs well enough, they can earn up to $150,000 a year.
Should I Work at McDonald’s?
Alternatively, you can start small. Maybe owning a franchise is biting a little more than you can chew. McDonald’s has over 1.7 million employees worldwide, and they are always hiring.
What are McDonald’s Wages?
McDonald’s entry-level wages spark a little bit of a complicated story. Historically, McDonald’s has paid its operating staff low wages. While McDonald’s has stated that their minimum wages have increased for entry-level employees to approximately $11 to $17 an hour, this only applies to company-owned McDonald’s outlets.
That is a problem, considering 95% of McDonald’s outlets worldwide are franchises.
Salaries can vary depending on your state, the franchisee, and other factors. In 2021, crew members earned approximately $9/hour, but that has since changed as they make about $12/hour nationwide.
If you reach the top of the pyramid, you can potentially earn $47,000 as a store manager at McDonald’s yearly.
McDonald’s is a huge international chain of restaurants that have taken over the globe for decades. The company earns about $7000 a day per unit and about 2.6 million dollars a year.
If you’re interested in owning a McDonald’s franchise of your own, make sure to have the resources to carry your costs throughout the process. Otherwise, you can also opt to become an employee at your local McDonald’s.
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