40,031 was the total number of McDonalds at the end of 2021.
33,510 was the total number at the end of 2011.
Up 19.5% in 10 years.
Looking at revenue though, things aren’t as good.
23.2 billion was the revenue in 2021.
Down from 27.5 billion in 2011.
Down 15.6% before factoring in inflation.
If inflation was factored, McDonalds should have made 35.8 billion dollars, showing the inflation factored decline was 35%.
Profit however, McDonalds makes up for declining revenue.
7.5 billion in 2021.
5.5 billion in 2011.
Up 36%
Up 5.6% post inflation.
And finally, market cap.
200 billion was McDonalds average market cap in 2021.
102 billion was the 2011 market cap.
Showing the company holds nearly a 100% increase in valuation the last 10 years, which heavily outpaces inflation.
McDonalds in store locations, market cap and profit is up from 2011 to 2021, despite being down in revenue.
Writing this, I want to get an idea if McDonalds will better off in ten years or not.
To figure this out, I wanted to really get an idea of why revenue fell in the last decade.
The big issue seems to be American locations.
McDonald’s had 14,157 locations in 2012.
13,673 in 2020.
Down 3.4%
That seems small, but the issue is US stores are 35% of revenue and total stores.
They tend to produce more revenue over emerging market McDonald’s such as the stores in China, Latin America and more.
It’s also why they lost revenue, despite gaining 6,500 stores in the 2010s.
Which for issues in the US & Europe, it comes down to a lot of factors.
Increased competition
Pursuit of healthier options.
Formally thriving locations for McDonalds falling.
This makes a case that McDonalds could in 10 years being smaller than today, with really only one major factor to change that and it’s China.
McDonald’s has 3,800 stores in China currently.
1,100 was the number in 2010.
McDonalds originally projected 4,500 stores by the end of 2022, but that was frozen due to COVID.
McDonald’s is planning growth in China, where the goal is over 10,000 stores in 2030, which could happen unless the politics of China change dramatically, which is possible.
That’ll be the factor to decide if McDonald’s has a noticeable growth by 2032, where it could see over 50,000 locations by the end of the decade.
I don’t believe McDonald’s sees a 100% growth in market cap, but I think store location and profit growth are around the same, with revenue also being up a bit.