Core Viewpoint - Despite challenges in the restaurant industry, McDonald's continues to grow its revenue, indicating resilience in its business model [1][2][12] Business Model Resilience - McDonald's operates primarily through franchises, with around 95% of its restaurants being franchise-owned, which provides a stable revenue stream from initial fees, rents, and royalties [4][5] - The company's revenue structure allows it to maintain a relatively stable income regardless of economic conditions, making it more recession-resistant compared to other restaurants [5][13] Financial Performance - In the first three quarters of 2025, McDonald's generated nearly $20 billion in revenue, a 2% increase from the same period in 2024, with a 3% increase in Q3 alone [7] - Net income for the same period was $6.4 billion, reflecting a 3% annual growth, while cost and expense growth was limited to 2% [7] - The company approved a 5% dividend increase to $7.44 annually per share, marking the 49th consecutive year of dividend hikes, resulting in a dividend yield of approximately 2.4% [8][9] Market Position - McDonald's P/E ratio stands at 26, which is below the S&P 500 average of 31, suggesting that the stock is available at a significant discount for income-oriented investors [11][13] - The company’s strong dividend position and stable revenue model position it well for continued income growth and stock price appreciation [12][13]