## **Pros:** ✅ **Iconic Global Brand:** McDonald’s is one of the most recognized brands in the world, with a consistent global presence and strong brand equity that transcends demographics and geographies. ✅ **Franchise-Based, Scalable Business Model:** The majority of McDonald’s restaurants are franchised, allowing the company to scale globally with lower capital intensity. This model generates steady cash flows through franchise fees and royalties while minimizing operational risk. ✅ **Digital & Delivery Innovation:** The company continues to invest in digital ordering, mobile apps, loyalty programs, and third-party delivery partnerships. These initiatives have improved convenience, customer retention, and average order value. ✅ **Efficient Loyalty Program:** Members of McDonald’s rewards program visit 15% more often than before, showing strong potential to boost same-store sales over the long term. ✅ **Emerging Markets Adaptability:** McDonald’s localizes menus and formats effectively to suit regional tastes and cultural preferences, giving it a competitive edge in both mature and developing economies. ## **Cons:** ❌ **Customer Satisfaction Concerns:** Despite improvements, McDonald’s still has low satisfaction scores compared to industry benchmarks. ❌ **Market Saturation:** McDonald's faces intense competition from other fast-food chains, local fast-foods and market saturation in key regions, which can limit growth opportunities. ❌ **Health & Wellness Trends:** The growing preference for healthier eating habits challenges McDonald's traditional menu, despite efforts to introduce healthier options. ❌ **Franchise** **Profitability Under Pressure:** Continued commodity and wage inflation, particularly in high-cost markets like California, could outpace sales growth and deteriorate franchise economics, potentially hindering new store development. ❌ **China, Middle East Geopolitical Exposure:** McDonald's is targeting 10,000 stores in China by 2028, creating a growing concentration in a market facing nationalistic trade pressures and US-China geopolitical risk. Consumer boycotts of American brands in both China and the Middle East.