McDonald's (MCD): what its 10-K says it depends on

Customers

McDonald's franchisees

earns from · approximately 95% were franchisednamed as a risk

Of the 45,356 McDonald's restaurants at year-end 2025, approximately 95% were franchised.Business (Item 1)

Suppliers

Limited-source suppliers

depends onnamed as a risk

Although many of these items are sourced from a wide variety of suppliers in countries around the world, certain items have limited suppliers, which increases our reliance on those suppliers.Risk factors (Item 1A)

Partners and platforms

Third-party delivery services

depends onnamed as a risk

Utilizing a third-party delivery service may not have the same level of profitability as a non-delivery transaction and may introduce additional food quality, food safety and customer satisfaction risks.Risk factors (Item 1A)

Also named by CAVA, HSIC, QSR

Other companies

Foreign currency-denominated debt

exposed to its price · $15.6 billion

Total foreign currency-denominated debt was $15.6 billion and $13.2 billion for the years ended December 31, 2025 and 2024, respectively.Market risk (Item 7A)

Standard & Poor's and Moody's credit ratings

depends on · BBB+ and Baa1

Standard & Poor's and Moody's currently rate the Company’s commercial paper A-2 and P-2, respectively, and its long-term debt BBB+ and Baa1, respectively.Market risk (Item 7A)

Accelerating the Arches strategy

named as a risk

To drive Systemwide sales, operating income and free cash flow growth, our business strategies – including the components of our Accelerating the Arches growth strategy – must be effective in maintaining and strengthening customer appeal and capturing additional market share.Risk factors (Item 1A)

Places

International operations (outside U.S.)

earns from · approximately 68% of its operating income

The Company has significant operations outside the U.S. where it earns approximately 68% of its operating income.Market risk (Item 7A)

Also named by APG, AXP, CARR, COP, COST, DD, ECL, EQIX and 14 more

United States

operates in

Significant reportable segments include the United States ("U.S.") and International Operated Markets.Business (Item 1)

Also named by ABBV, ADP, AJG, AMGN, APA, AXGN, AXP, BALL and 139 more

China

operates in

While developmental license and affiliate arrangements are largely the same, affiliate arrangements are used in a limited number of foreign markets (primarily China and Japan) within the International Developmental Licensed Markets, as well as a limited number of individual restaurants within the International Operated Markets, where the Company also has an equity investment and records its share of net results in equity in earnings of unconsolidated affiliates.Business (Item 1)

Also named by A, AA, AAOI, AAP, AAPL, AB, ADI, AEHR and 261 more

Japan

operates in

While developmental license and affiliate arrangements are largely the same, affiliate arrangements are used in a limited number of foreign markets (primarily China and Japan) within the International Developmental Licensed Markets, as well as a limited number of individual restaurants within the International Operated Markets, where the Company also has an equity investment and records its share of net results in equity in earnings of unconsolidated affiliates.Business (Item 1)

Also named by A, AAPL, AFL, AMKR, ANET, BMY, BSX, CAT and 25 more

Commodities and inputs

British Pound Sterling

exposed to its price · 1,416

The Company’s largest net asset exposures (defined as foreign currency assets less foreign currency liabilities) at year end were as follows:Market risk (Item 7A)

Also named by AMG, BGC, BKNG, CBRE, CTRE, FCFS, FDS, FIS and 31 more

Australian Dollar

exposed to its price · $ 1,771

The Company’s largest net asset exposures (defined as foreign currency assets less foreign currency liabilities) at year end were as follows:Market risk (Item 7A)

Also named by ADBE, BEN, BF/B, BTU, CSGP, EEFT, EZPW, GPC and 13 more

Polish Zloty

exposed to its price · 820

The Company’s largest net asset exposures (defined as foreign currency assets less foreign currency liabilities) at year end were as follows:Market risk (Item 7A)

Also named by EEFT, UNM

China Renminbi

exposed to its price · 501

The Company’s largest net asset exposures (defined as foreign currency assets less foreign currency liabilities) at year end were as follows:Market risk (Item 7A)

Beef

exposed to its pricenamed as a risk

The commodity markets for some of the ingredients we use, such as beef and chicken, are particularly volatile due to factors such as seasonal shifts, climate conditions, industry demand and other macroeconomic conditions, international commodity markets, food safety concerns, product recalls, government regulation, and acts of war, terrorism or other hostilities, all of which are beyond our control and, in many instances, unpredictable.Risk factors (Item 1A)

Also named by CAG, CMG, CPB, DRI, QSR, TXRH, YUM

Chicken

exposed to its pricenamed as a risk

The commodity markets for some of the ingredients we use, such as beef and chicken, are particularly volatile due to factors such as seasonal shifts, climate conditions, industry demand and other macroeconomic conditions, international commodity markets, food safety concerns, product recalls, government regulation, and acts of war, terrorism or other hostilities, all of which are beyond our control and, in many instances, unpredictable.Risk factors (Item 1A)

Also named by CAVA, CMG

Laws and programs

EU General Data Protection Regulation (GDPR)

subject tonamed as a risk

An increasing number of our markets have enacted privacy and data protection requirements (including the European Union’s General Data Protection Regulation and various U.S. state-level laws), and further requirements are likely to be proposed or enacted in the future.Risk factors (Item 1A)

Also named by ACN, ADSK, AIG, ALK, AMG, ANET, APG, AXON and 61 more

EU AI Act

subject tonamed as a risk

Additionally, as we expand digital engagement, data collection and personalization through AI, we face new and heightened risks under laws and regulations, including U.S. state-level regulations and the EU AI Act.Risk factors (Item 1A)

Also named by ACN, ADBE, AMD, AXON, CGNX, CRM, CRWD, CTSH and 36 more

Joint employer / franchise legal distinction

subject tonamed as a risk

Litigation, legislative and regulatory action concerning our relationship with franchisees and the legal distinction between our franchisees and us for employment law or other purposes, if determined adversely, could challenge our franchise business model, increase costs, negatively impact our business operations and the business prospects of our franchisees and subject us to incremental liability for their actions.Risk factors (Item 1A)

Technology

Weight-loss medications

named as a risk

For example, health, environmental and other scientific studies and practices (such as changes to dietary guidelines or use of weight-loss medications), continuously evolve and may have contradictory implications, drive popular opinion, litigation and regulation, and alter consumer behavior in ways that affect the IEO segment or perceptions of our brand, generally or relative to available alternatives.Risk factors (Item 1A)

Also named by INGR, RRGB

McDonald's trademark and Golden Arches Logo

depends on

The Company considers the "McDonald's" trademark and the Golden Arches Logo to be of material importance to its business.Business (Item 1)