MCDONALD'S

The track record screams stability with minimal evolution: franchising for decades, the U.S. system edged from 12,764 to 12,772 locations last year—a flat 0% growth rate despite projecting 136 new units. Franchisees dominate at 12,772 spots versus 685 corporate, but health signals mixed: 1,758 transfers suggest robust resale activity, potentially lucrative exits, yet 300 terminations and 300 non-renewals flag churn that could pressure underperformers. Item 20 details this plateaued trajectory, implying a saturated market where expansion leans on replacements over net adds—no contraction, but no boom either.

Economics demand deep pockets: $45,000 franchise fee folds into $1.47M-$2.64M initial outlay per Item 7, covering builds from traditional sites to smaller formats. Item 19 shines with $3.96M average gross sales and $3.8M median across units, translating to estimated owner profits of $1.01M-$1.05M after typical expenses—elite returns if you hit stride. SBA data underscores scale with just 13 loans averaging $2.2M, hinting selective financing; litigation spikes on discrimination and contract disputes add risk, potentially inflating operational headaches. For high-net-worth operators, it's a cash machine; for others, the entry barrier and legal shadows scream caution.