Via Reddit:

In Canada, for an average franchisee, profit runs about 25% of total sandwich pricing. ie a big Mac costs $4, after all labour and materials. $1 is gross profit, $3 to make sandwich. Markup on dollar menu ($1.39) items is substantially less with the hope that you will be purchasing a pop and fries. Can’t remember the markup on those but I think I remember a pop costing between $.09-$.15. That may have changed in the last decade.

However, franchisee’s then owe something like 7% of TOTAL sales to McDonald’s head office for rent and advertising, among other things. Which seems like a lot, but also gets you one of the best and most consistent delivery systems of any restaurant. (And now I feel like a shill)

Source: family members once owned a McDonalds

~
“Worked at a McDonald’s as a manager for a long time and I am good friends with an owner of 5 restaurants. He tells me the biggest profit margins are from the sale of coffees and fountain drinks. A small coffee at $1.39 for example cost $0.015 for the cup and $0.05 for the coffee itself. Add the cost of labor etc etc, each small coffee brings at least $1 straight to his pocket after all expenses and all income federal taxes. Must be nice.

“Thought you guys would like to see exactly how much everything at McDonald’s costs to make.” Via: imgur.com

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