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What Is a McDonald’s Franchise’s Profit?

According to the McDonald’s Franchise Disclosure Document, a typical McDonald’s franchise generates between $500,000 and $1,000,000 in annual revenues. The average total income for restaurants in the United States that have been open for at least one year is $2,6 million.

Chick-fil-A is the restaurant franchise with the largest sales in the United States. Its restaurants generate an annual average gross income of $3,1,000,000. McDonald’s ranks second with yearly single-store sales of $2,600,000. Jason’s Deli ranks third with an average of $2.55 million per location. Subway has more locations than McDonald’s, but its stores generate an average annual income of $481,000.

The profit margins of restaurants, in general, and franchised restaurants in particular, are often low. In the past five years, the average profit margin for the restaurant industry has decreased from 3.2% to 2.4%. The annual profit of the average franchised restaurant establishment is less than $50,000. Occasionally, opening a franchised restaurant with an established name might cost up to $500,000.

McDonald’s is the second largest restaurant chain in the United States and a highly lucrative corporation overall. The corporation earns more than $27 billion in revenue and $5.5 billion in earnings, with a profit margin of about 20 percent. The average profit margin for large U.S. corporations is approximately 8.7%.

Joel Gomez
Joel Gomezhttps://www.gadgetclock.com
Joel Gomez is an Avid Coder and technology enthusiast. To keep up with his passion he started Gadgetclock 3 years ago in 2018. Now It's his hobby at the night :) If you have any questions/queries and just wanna chit chat about technology, shoot a mail - Joel at gadgetclock com.

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