Who are the real owners of McDonald's?

The Origins and Ownership of McDonald’s

McDonald’s, the iconic fast-food chain, has become a global behemoth known for its signature hamburgers and golden arches. However, the story of its ownership has been an evolving one since its humble beginnings in 1940.

Early Family Ownership

McDonald’s was founded by brothers Richard and Maurice McDonald in San Bernardino, California. The brothers introduced the concept of “Speedee Service System,” emphasizing fast and efficient food preparation. Early on, ownership remained firmly within the McDonald family, with the brothers maintaining control over their restaurants.

The Ray Kroc Era

In 1954, Ray Kroc, a milkshake machine salesman, visited the McDonald brothers’ restaurant and was impressed by their innovative system. He struck a deal to become their franchise agent and opened his first franchised McDonald’s in Des Plaines, Illinois.

Over the next decade, Kroc acquired exclusive rights to the McDonald’s franchise. By 1961, he had purchased the entire company from the McDonald brothers for $2.7 million. The company’s ownership thus shifted from the founding family to Ray Kroc.

Modern Ownership Structure

Following Ray Kroc’s death in 1984, McDonald’s ownership became more diversified. The company went public in 1965, with its shares being traded on the New York Stock Exchange.

Today, McDonald’s is owned by a wide range of shareholders, including institutional investors, mutual funds, and individual stock owners. The company is governed by a board of directors, which is responsible for overseeing the company’s operations and strategy.

Franchise Model

While McDonald’s retains ownership of its corporate-operated restaurants, the majority of its locations are operated by franchisees. These franchisees pay an initial fee and ongoing royalties to McDonald’s in exchange for the right to use the McDonald’s brand, systems, and products.

This franchise model allows McDonald’s to expand its reach into new markets while sharing the risks and rewards of ownership with franchisees. However, it also means that McDonald’s does not have direct control over the operations of franchised restaurants.

In conclusion, McDonald’s ownership has evolved over the years, from its beginnings as a family-owned business to its current status as a publicly traded company with a diversified shareholder base. While the McDonald brothers laid the foundation for the company’s success, it was Ray Kroc’s vision and entrepreneurial spirit that propelled McDonald’s to its global prominence.