McDonald's Corporation, founded in 1940 by Richard and Maurice McDonald, is a globally recognized fast food chain. Initially a restaurant in San Bernardino, California, it transformed into a hamburger stand before adopting the franchise model and iconic Golden Arches logo in the 1950s. Businessman Ray Kroc's involvement proved pivotal, eventually leading to his acquisition of the company in 1961. Headquartered in Chicago since 2018, McDonald's also holds significant real estate assets, owning a majority of its restaurant buildings and land.
On May 15, 1940, Richard and Maurice McDonald opened the first McDonald's restaurant in San Bernardino, California.
In 1948, the McDonald brothers implemented the "Speedee Service System," a system that revolutionized fast-food service.
On April 15, 1955, Ray Kroc, who later became instrumental in McDonald's global expansion, joined the company as a franchise agent, marking the opening of the ninth McDonald's restaurant.
McDonald's filed for a U.S. trademark on the name "McDonald's" for "Drive-In Restaurant Services" on May 4, 1961.
In 1961, Ray Kroc bought out the McDonald brothers' share of the company for $2.7 million, paving the way for McDonald's worldwide expansion.
In 1962, the iconic Golden Arches logo replaced "Speedee," a hamburger-headed chef, as McDonald's mascot.
Ronald McDonald, the clown mascot, was introduced in 1963 to target children in McDonald's marketing.
The company was granted a U.S. trademark for the present version of the overlapping, double-arched "M" logo on November 18, 1968.
The year 1970 was the last time McDonald's had a net decrease in the number of locations in the United States.
The original McDonald's restaurant in San Bernardino was torn down in 1971.
In 1971, McDonald's moved its headquarters from an office within the Chicago Loop to the Oak Brook facility, which was built on the former estate of Paul Butler, the founder of Oak Brook.
McDonald's introduced its first drive-through service in Sierra Vista, Arizona in 1975, following the trend set by other fast food chains.
When McDonald's opened in Hong Kong in 1975, it became the first restaurant to consistently maintain clean restrooms. This prompted customers to demand similar standards from other dining establishments and institutions, contributing to a general improvement in service quality.
McDonald's made its debut in the NASCAR Cup Series in 1977, sponsoring Richard Childress for a single race.
The ninth McDonald's location, where Ray Kroc first joined the company, was demolished and rebuilt in 1984.
Between 1977 and 1986, McDonald's maintained a limited presence in NASCAR, sponsoring only a few races each season.
The first McDonald's drive-through restaurant in Britain opened in Fallowfield, Manchester in 1986.
McDonald's introduced the first PlayPlace featuring the iconic crawl-tube design with ball pits and slides in 1987 in the US.
The United States invaded Panama in 1989, contradicting the "Golden Arches Theory of Conflict Prevention" which states that countries with McDonald's presence do not go to war with each other.
McDonald's commenced its operations in Russia in 1990 and by August 2014 had established a significant presence with 438 stores across the country.
In 1990, a group called London Greenpeace challenged McDonald's on its environmental, health, and labor practices. The corporation's libel suit against the activists led to the "McLibel case," one of the longest in English civil law history.
In 1992, basketball legend Michael Jordan became the first celebrity to have a McDonald's value meal named after him. The "McJordan," consisting of a Quarter Pounder with pickles, raw onion slices, bacon, and barbecue sauce, was offered at McDonald's franchises in Chicago.
McCafé, a café-style concept, was first launched by McDonald's Australia in Melbourne in 1993.
McDonald's became a full-time sponsor in NASCAR in 1993, partnering with the No. 27 Junior Johnson & Associates Ford driven by Hut Stricklin.
In 1994, McDonald's continued its sponsorship with the No. 27 Junior Johnson & Associates Ford, but with Jimmy Spencer replacing Stricklin as the driver.
In 1994, a court case, Liebeck v. McDonald's Restaurants, involved an 81-year-old woman, Stella Liebeck, who suffered third-degree burns from spilled McDonald's coffee. The court found the coffee's temperature unreasonably hot, awarding Liebeck $2.86 million, later reduced to $640,000.
McDonald's began restricting smoking within its 1,400 wholly owned restaurants in 1994.
McDonald's experimented with "Hearth Express" in 1994, a concept focusing on homestyle takeout meals, but the project was short-lived and closed within a year.
St. Jude Children's Research Hospital received an anonymous donation in 1995: a winning McDonald's Monopoly game piece worth $1 million. Despite the unusual circumstances and a breach of game rules, McDonald's honored the prize with annual payments until 2014.
McDonald's New Zealand acquired the local fast food chain Georgie Pie in 1996.
The last time McDonald's experienced a decline in annual sales was in 1997.
The site of the original McDonald's restaurant was sold to the Juan Pollo restaurant chain in 1998.
McDonald's first tested electronic kiosks, called "E-Clerks," in suburban Chicago, Illinois, and Wyoming, Michigan, in 1999. The goal was to explore cost savings on staffing and potentially encourage larger purchase amounts.
McDonald's made a small investment in Aroma Café in 1999.
NATO conducted bombing campaigns against Serbia in 1999, serving as another contradiction to the "Golden Arches Theory of Conflict Prevention."
Eric Schlosser's 2001 book "Fast Food Nation" highlighted that nearly one in eight U.S. workers had been employed by McDonald's at some point. The book also revealed McDonald's status as the largest private operator of playgrounds in the U.S. and a major purchaser of beef, pork, potatoes, and apples. Notably, the book mentioned that McDonald's meat selections varied based on the cultural preferences of different countries.
Eric Schlosser's book "Fast Food Nation," published in 2001, included a critique of McDonald's business practices, particularly their political influence and advertising directed at children.
McDonald's divested from Aroma Café in 2001, ending its brief involvement with the coffeehouse chain.
McDonald's switched its sponsorship to the No. 96 PPI Motorsports Ford driven by rookie Andy Houston in 2001. However, the team's inability to field a car for the whole season led to McDonald's temporary absence from NASCAR.
Vegetarian groups, primarily Hindu and Buddhist, successfully sued McDonald's in 2002 for misrepresenting their french fries as vegetarian when they contained beef broth.
McDonald's divested from Donatos Pizza in December 2003 after owning the pizza chain for several years.
LeBron James served as a spokesperson for McDonald's from 2003, representing the brand in its advertising and promotional campaigns.
McDonald's made a comeback to NASCAR in 2004, joining forces with Evernham Motorsports as a part-time sponsor for various drivers.
Morgan Spurlock's documentary "Super Size Me," released in 2004, argued that McDonald's food contributed to obesity and criticized their lack of nutritional information. In response, McDonald's discontinued the super size option and introduced the adult Happy Meal.
McDonald's completed its divestment from Chipotle Mexican Grill in October 2006 through a stock exchange, having previously held a majority stake in the company.
In 2006, McDonald's launched its "Forever Young" brand, overhauling its restaurants with a new design for the first time since the 1970s. The redesign adopted a coffee shop aesthetic, incorporating wooden tables, faux-leather chairs, muted colors, and a warmer ambiance. Many restaurants also introduced features like free Wi-Fi, flat-screen TVs, double drive-thrus, and modernized architectural elements.
The 2006 Lebanon War is another instance contradicting the "Golden Arches Theory of Conflict Prevention", highlighting that the presence of McDonald's does not preclude war between nations.
In April 2007, McDonald's in Perth, Western Australia, faced charges and an $8,000 fine after pleading guilty to employing children under the age of 15 at one of its outlets.
On August 27, 2007, McDonald's sold the Boston Market chain to Sun Capital Partners as part of its strategy to focus on its core brand.
Between 2007 and 2011, fast food workers in the US received an average of $7 billion annually in public assistance due to low wages.
In 2007, McHappy Day, a fundraising event by McDonald's, was celebrated in 17 countries including Argentina, Australia, Austria, Brazil, Canada, England, Finland, France, Guatemala, Hungary, Ireland, New Zealand, Norway, Sweden, Switzerland, the United States, and Uruguay.
In May 2008, McDonald's responded to public pressure by announcing the use of cooking oil free of trans fats for their french fries in the US and Canada.
The South Ossetia War in 2008 further contradicted the "Golden Arches Theory of Conflict Prevention", showing that countries with McDonald's can still engage in conflict.
On September 8, 2009, McDonald's lost a legal battle in Malaysia to prevent a restaurant from using the name "McCurry," with the country's highest court ruling against them.
McDonald's McHappy Day raised a remarkable $20.4 million in Australia in 2009.
Between 2010 and 2015, McDonald's experienced a 26% increase in rental payments from franchisees, signifying the substantial revenue stream generated from its real estate holdings. By the end of this period, rental income constituted one-fifth of the company's total revenue.
In 2010, McDonald's kicked off its long-standing partnership with Chip Ganassi Racing, sponsoring Jamie McMurray's No. 1 Chevrolet.
In 2010, the fundraising goal for McHappy Day in Australia was set at an ambitious $20.8 million.
McDonald's sponsorship of Evernham Motorsports concluded in 2010, marking the end of this particular partnership in NASCAR.
Between 2007 and 2011, fast food workers in the US received an average of $7 billion annually in public assistance due to low wages.
In a notable downturn, McDonald's experienced its first monthly sales decline in nine years in October 2012.
In 2012, McDonald's made a commitment to gradually eliminate the use of gestation crates in its pork supply chain.
A 2012 study by Keep Australia Beautiful revealed that McDonald's was the most littered brand in Queensland, adding to existing studies that placed McDonald's among the most littered brands globally.
A study by Fast Food Forward in April 2013 found that about 84% of fast food workers in New York City had been paid less than their legal wages by their employers.
On August 5, 2013, The Guardian reported that 90% of McDonald's UK workforce were on zero-hour contracts, potentially making it the largest private sector employer in the country using such contracts.
In November 2013, a McDonald's restaurant in Wales mistakenly played an uncensored version of Rucka Rucka Ali's parody song "Only 17," leading to customer complaints and a public apology from McDonald's.
McDonald's shut down its McResource website in December 2013 following criticism and negative publicity for its controversial advice to employees, which included suggestions like breaking food into smaller pieces to feel fuller and selling possessions for extra cash.
In 2013, the University of Oxford predicted a 92% probability of food preparation and serving becoming automated in fast food restaurants within the following decades.
McDonald's announced its plan to open vegetarian-only restaurants in India by mid-2013, catering to the country's large vegetarian population.
March 2014 marked the debut of the special "Sprite 6 Mix by LeBron James" flavor, just before the NBA playoffs. This Sprite flavor combined lemon-lime, orange, and cherry.
McDonald's suspended its corporate-owned store operations in Crimea following Russia's annexation of the region in August 2014.
On August 20, 2014, amidst escalating tensions between the United States and Russia over the annexation of Crimea, the Russian government temporarily closed four McDonald's outlets in Moscow, citing sanitary concerns.
On August 23, 2014, Russian Deputy Prime Minister Arkady Dvorkovich refuted any government plans to ban McDonald's in Russia. He dismissed the notion that the recent temporary closures of some branches were connected to the sanctions imposed on Russia.
McDonald's faced its first quarterly sales decline in seventeen years in 2014, marking a significant setback for the company.
In 2014, McDonald's concluded the 20-year annuity payments to St. Jude, fulfilling the $1 million prize from the anonymous Monopoly donation, even after discovering the piece was part of an embezzlement scheme.
Don Thompson resigned from his position as CEO of McDonald's on January 28, 2015.
Steve Easterbrook assumed the role of CEO on March 1, 2015, succeeding Don Thompson. Easterbrook previously served as McDonald's chief brand officer and held leadership positions in the UK and northern Europe.
In March 2015, McDonald's workers across 19 U.S. cities lodged 28 health and safety complaints with the U.S. Occupational Safety and Health Administration. The complaints cited inadequate staffing, insufficient protective equipment, inadequate training, and intense pressure to work quickly, all contributing to injuries. Workers alleged that a lack of first aid supplies led management to advise treating burn injuries with condiments like mayonnaise and mustard.
In July 2015, the Economist's Big Mac Index revealed that Switzerland had the priciest Big Mac globally, while India offered the most affordable option with its Maharaja Mac.
Despite calls to spin off its U.S. real estate holdings into a Real Estate Investment Trust (REIT), McDonald's announced on November 10, 2015, that it would not pursue this option. CEO Steve Easterbrook explained that such a move posed excessive risks to the company's business model.
December 2015 marked the opening of the first McDonald's Next store in Hong Kong, featuring an open-concept design, "Create Your Taste" digital ordering, free mobile device charging, and table service after 6:00 pm.
Data collected by Glassdoor in late 2015 indicated that McDonald's in the US paid entry-level employees between $7.25 and $11 per hour, with an average of $8.69 per hour. Shift managers earned an average of $10.34 per hour, while assistant managers made an average of $11.57 per hour.
Under the leadership of CEO Steve Easterbrook, who took over in 2015, McDonald's streamlined its menu, aiming for healthier options and removing artificial ingredients from some items.
In 2015, McDonald's closed 184 restaurants in the United States, exceeding the number of new openings. This marked the first time since 1970 that the company experienced a net reduction in its U.S. restaurant count.
Comparing data from the first quarters of 2015 and 2016, McDonald's saw a 6% increase in customer satisfaction after raising wages and benefits for its workers.
McDonald's began offering a partial breakfast menu throughout the day in the United States in 2015 after regional trials.
In 2015, McDonald's committed to phasing out the use of eggs from battery cage facilities by 2025. Given McDonald's annual purchase of over 2 billion eggs, representing 4% of U.S. egg production, this shift is anticipated to significantly impact the egg industry.
In early 2015, McDonald's launched its "Create Your Taste" (CYT) program, a customizable burger service inspired by restaurants like Shake Shack and Grill'd. It debuted in Australia and expanded to other countries including China, Hong Kong, Singapore, Arabia, and New Zealand. Trials were also ongoing in the US market at the time.
On June 13, 2016, McDonald's confirmed its plans to relocate its global headquarters to Chicago's West Loop neighborhood in the Near West Side.
In November 2016, McDonald's replaced its "Create Your Taste" program with the more efficient and less expensive "Signature Crafted Recipes" program.
On December 29, 2016, McDonald's Malaysia announced that only certified halal cakes would be allowed in its restaurants across the country.
By 2016, McDonald's "Create Your Taste" electronic kiosks, allowing customers to customize their meals, were implemented in some restaurants internationally. These kiosks were seen by some as a potential solution for fast food companies like McDonald's to cut labor costs, especially in the face of employee demands for higher wages.
Comparing data from the first quarters of 2015 and 2016, McDonald's saw a 6% increase in customer satisfaction after raising wages and benefits for its workers.
On January 9, 2017, McDonald's sold 80% of its franchise rights in mainland China and Hong Kong for US$2.08 billion to a consortium composed of CITIC Limited, private equity funds managed by CITIC Capital, and Carlyle.
In April 2017, in response to employee strikes, McDonald's offered all of its UK employees the option to switch from zero-hour contracts to fixed contracts.
In April 2017, Irish fast-food chain Supermac's challenged McDonald's trademark practices in the European Union, accusing them of "trademark bullying" by hoarding unused trademarks to stifle competition.
Two McDonald's stores in the UK experienced strikes in September 2017, with employees demanding an end to zero-hour contracts. The strikes garnered support from Jeremy Corbyn, the Leader of the Opposition at the time.
McDonald's launched a mobile app in the US in 2017, allowing customers to place orders online and bypass the traditional ordering lines, both inside the restaurant and at the drive-thru. Many locations also designated special parking spaces for mobile order pickups.
LeBron James' role as a spokesperson for McDonald's ended in 2017, concluding his tenure as a prominent face of the brand.
Following the success in the US, McDonald's expanded its all-day breakfast menu to Canada in 2017.
McDonald's launched its on-demand delivery service in 2017, partnering with Uber Eats to provide customers with convenient delivery options.
McDonald's inaugurated its new 608,000-square-foot global headquarters on June 4, 2018. The building stands on the former site of Harpo Productions, known for hosting "The Oprah Winfrey Show" and other Harpo productions.
In June 2018, McDonald's moved its headquarters from Oak Brook, Illinois to nearby Chicago.
In September 2018, McDonald's USA announced the elimination of artificial preservatives, flavors, and colors from seven of their classic burgers.
By the end of 2018, McDonald's completed its transition to using canola-based oil with corn and soy oils for its baked goods, pies, and cookies in the United States and Canada.
By the end of 2018, McDonald's had a global presence with restaurants in 120 countries and territories, serving 68 million customers daily. The company operated 37,855 restaurants worldwide, employing over 210,000 people.
In September 2019, McDonald's acquired Apprente, an AI-based start-up, with the aim of replacing human servers with voice-based technology in its US drive-thrus.
McDonald's board of directors took action in November 2019 to remove Steve Easterbrook from his position as CEO due to his violation of company policies on personal conduct by engaging in a relationship with an employee. Chris Kempczinski, former president of McDonald's USA, was appointed as his successor.
In 2019, McDonald's employee Jenna Ries filed a lawsuit against the company alleging a "toxic" work environment and tolerance for sexual harassment.
McDonald's and its franchisees generated $100 billion in sales in 2019, representing approximately 4% of the estimated $2.5 trillion global restaurant industry, highlighting the company's substantial market share.
McDonald's expanded its delivery services in 2019 by partnering with DoorDash, further broadening its delivery reach.
McDonald's extended its racing sponsorships in 2019, partnering with Bubba Wallace in Richard Petty Motorsports' No. 43 Chevrolet for select races and continuing to support Kyle Larson in CGR's No. 42.
In July 2020, McDonald's reported a 68% decline in earnings per share for the second quarter compared to the same period the previous year. This was largely attributed to the COVID-19 pandemic, which forced the closure of most seating and play areas in its US restaurants. The company shifted its focus to drive-thru, curbside, and online food ordering delivery services during this time.
McDonald's collaborated with rapper Travis Scott in September 2020 to launch the "Travis Scott Meal" nationwide. This meal featured a Quarter Pounder with cheese, bacon, lettuce, pickles, ketchup, and mustard; medium fries with barbecue sauce; and a Sprite.
McDonald's announced the McPlant, a plant-based burger, in November 2020, signaling the company's venture into meatless alternatives.
McDonald's stopped selling meat pies in New Zealand in 2020, discontinuing a menu item introduced after the acquisition of the Georgie Pie fast-food chain in 1996.
LeBron James' endorsement agreement with Coca-Cola and Sprite concluded in 2020, marking the end of a long-standing partnership.
Following Kyle Larson's suspension, McDonald's ended its sponsorship of him in 2020. However, they maintained a one-race partnership with Bubba Wallace.
The all-day breakfast option was removed from McDonald's menus at the start of the COVID-19 pandemic in 2020.
As of February 2021, the composition of McDonald's board of directors was disclosed.
By 2021, McDonald's had become the world's largest fast food chain, with over 40,000 outlets in over 100 countries, serving approximately 69 million customers daily.
In 2021, LeBron James initiated a new partnership with Pepsi and Mountain Dew, venturing into a different beverage collaboration.
In 2021, McDonald's added Grubhub as a delivery partner at select locations, offering customers even more choices for delivery.
In 2021, McDonald's continued its support in the racing world by sponsoring Ross Chastain, Larson's replacement in the No. 42 car, and became a "founding partner" of Wallace's new team, 23XI Racing.
In 2021, McDonald's faced allegations of workplace harassment from at least 50 employees in the UK, prompting the company to implement anti-harassment training.
In 2021, McDonald's implemented a strategic shift by removing value meals and lower-priced items from its menu, aiming to concentrate on higher-priced offerings.
In 2021, McDonald's partnered with the popular Korean boy group BTS to introduce the "BTS Meal" in 50 countries. This meal included a 10-piece Chicken McNuggets, medium fries, a medium Coke, and, for the first time in the United States, two spicy dipping sauces: Sweet Chili and Cajun.
In response to the invasion of Ukraine, McDonald's temporarily closed its 850 locations in Russia on March 8, 2022, while continuing to compensate its 62,000 employees.
On May 16, 2022, McDonald's revealed that the closure of its 850 stores in Russia would be permanent. The company decided to sell these stores and "de-Arch" its current business, meaning the new owner would not be able to use the McDonald's name, logo, or menu. However, McDonald's planned to continue paying its Russian employees until the sale's finalization.
On June 10, 2022, the new owner of the former McDonald's restaurants in Russia unveiled a new logo as part of its rebranding effort. The logo, featuring a circle and two lines, symbolizes a burger and french fries. The rebranded business adopted the name "Vkusno i tochka", which translates to "Tasty - Period."
McDonald's reached a settlement with French authorities in July 2022 to end criminal proceedings related to tax fraud charges.
In August 2022, McDonald's announced significant changes to its board of directors. Sheila Penrose, chair of JLL Inc., retired, while Anthony Capuano (CEO of Marriott International), Jennifer Taubert (executive vice president and worldwide chairman of pharmaceuticals at Johnson & Johnson), and Amy Weaver (president and CFO of Salesforce) joined the board.
McDonald's in Belarus announced on November 11, 2022, that all 25 of its stores across six cities would be rebranded as "Vkusno i tochka" within a few weeks.
McDonald's suspended its operations in Kazakhstan in November 2022 due to challenges in sourcing minced meat from Russia. The franchise was then transferred to Food Solutions KZ.
In 2022, the McDonald's restaurant in Murmansk, Russia, ceased its operations.
In 2022, McDonald's achieved the sixth-highest global brand valuation.
Due to the success of the McPlant, McDonald's rolled out the Double McPlant in all its restaurants across the United Kingdom and Ireland, starting January 4, 2022.
McDonald's announced in July 2023 its plans to test a new fast-food brand called CosMc's. The new brand will focus on coffee and other beverages, targeting afternoon customers with a smaller footprint than traditional McDonald's restaurants.
After initially changing their name to "We are open" (Біз ашықпыз), the former McDonald's restaurants in Kazakhstan were renamed in August 2023 to honor their best employees.
In November 2023, the former McDonald's restaurants in Kazakhstan underwent their final rebranding. The network is now known as "I'M", with a heart symbol replacing the dot over the "I".
The first CosMc's location opened in Bolingbrook, Illinois, in December 2023, marking the launch of McDonald's new fast-food brand.
The list of the 10 largest shareholders of McDonald's as of December 30, 2023, was released.
The original settlement of $2.86 million awarded to Stella Liebeck in the 1994 Liebeck v. McDonald's Restaurants case is equivalent to $5.33 million in 2023. The reduced amount of $640,000 is equivalent to $1.2 million in 2023.
The EUIPO Board of Appeal reversed its previous decision in 2023, overturning the trademark cancellation that favored Supermac's, after McDonald's submitted extensive additional evidence.
McDonald's opened its first largely automated restaurant in Fort Worth, Texas, in early 2023. This restaurant minimized human interaction in the ordering process, relying on technology instead. Employees were available for assistance if needed but were otherwise less visible in customer-facing roles.
In 2023, the U.S. Department of Labor uncovered child labor law violations at multiple McDonald's franchises. In Kentucky, over 300 children, including two 10-year-olds, were illegally employed, resulting in $212,000 in fines. Further investigations in Louisiana and Texas found 83 minors working in violation of labor laws, leading to additional fines of $77,572.
During the 2023 Israel-Gaza war, McDonald's in Israel was widely condemned for providing free meals to the Israel Defense Forces, sparking the hashtag #BoycottMcDonalds and protests outside restaurants in several countries.
A 2023 BBC investigation uncovered continued claims of a toxic work environment at McDonald's UK, with over 100 current and former employees alleging sexual assault, harassment, racism, and bullying.
McDonald's CEO Chris Kempczinski acknowledged in January 2024 that the company faced a significant business impact in several markets due to the ongoing Israel-Gaza war and the spread of misinformation surrounding the company's involvement.
McDonald's is set to open a new restaurant in Tromsø, Norway, in January 2024. This will make it the northernmost McDonald's restaurant in the world, surpassing the one in Rovaniemi, Finland.
In April 2024, Arutz Sheva reported that McDonald's global corporation was in talks to acquire all Israeli branches from the local franchisee, a potential move related to the previous year's controversy.
McDonald's is planning to open nine CosMc's restaurants in Texas by the end of 2024 as part of its testing phase for the new brand.
By 2025, McDonald's aims to fully transition to using cage-free eggs in response to consumer concerns regarding the welfare of hens in battery cage systems.