Business Description

NATURE OF BUSINESS The Company franchises and operates McDonald’s restaurants in the global restaurant industry. All restaurants are either owned and operated by the Company or by franchisees, including conventional franchisees under franchised arrangements, and developmental licensees or affiliates under license agreements. The following table presents restaurant information by ownership type: Restaurants at December 31, 2025 2024 2023 Conventional franchised 22,570 22,077 21,818 Developmental licensed 9,675 9,247 8,684 Foreign affiliated 11,072 10,108 9,178 Total Franchised 43,317 41,432 39,680 Company-owned and operated 2,039 2,045 2,142 Total Systemwide restaurants 45,356 43,477 41,822 The results of operations of restaurant businesses purchased and sold in transactions with franchisees were not material either individually or in the aggregate to the accompanying Consolidated Financial Statements.