The address is part of McDonald’s business model
A restaurant’s most visible business is selling meals. McDonald’s corporate model also makes the location itself an asset: in many cases, the company owns the restaurant site or building and leases it to a franchisee, the local operator who runs the restaurant under the McDonald’s name.
That arrangement changes who bears which risks. The franchisee pays for staffing, food, and day-to-day operations, while also owing rent and franchise fees under their agreement. The company, meanwhile, can earn from control of the site as well as from the brand. Lease terms vary, so rent is not simply a guaranteed, identical payment at every location—but it can be less directly exposed to a restaurant’s daily sales than the franchisee’s income is.
Why ownership matters beyond rent
Owning or controlling a site gives the company influence over where restaurants operate and how the business is structured. A franchisee may be responsible for making a particular restaurant work, but the company has a long-term stake in the location and can set conditions through the lease and franchise agreement. That can help keep the network consistent while giving corporate a recurring source of income.
The tradeoff is that property ownership ties up capital and carries costs: sites must be acquired or maintained, and a poor location can remain a weak asset. The arrangement does not make food sales irrelevant; a franchisee who cannot earn enough to cover expenses may struggle to keep operating. But it helps explain why a restaurant’s economic value to McDonald’s is not measured only by how many burgers it sells. The counter sells the meal; the site can keep producing value through the lease.
