Episode Details

McDonald's is also one of the world's biggest property owners, with an estimated $42 billion in land. This episode tells the company's life story, starting in 1940 when Richard and Maurice McDonald opened a drive-in in San Bernardino hoping to make a million dollars. In 1948 they fired their carhops, got rid of plates and silverware, and cut the menu to nine items, creating the Speedy Service System built on speed, low prices and high volume. Ray Kroc came in as a franchise agent in 1955, bought out the brothers in 1961 for $2.7 million, and introduced the Golden Arches and Ronald McDonald.

We explain the real estate model behind the burgers: owning land and buildings, leasing them to franchisees, and declining Wall Street pressure to spin the property off into a REIT. We cover the global footprint, the Big Mac Index and localized menus, along with the company's crises: the McLibel case, Super Size Me, ingredient overhauls, child labor violations, harassment lawsuits and leaving Russia. We end with automation, AI at the drive-thru and the customer data the company collects.

• How the McDonald brothers' Speedy Service System changed fast food
• Ray Kroc's buyout and the rebranding that followed
• Why owning real estate gives McDonald's control over its franchisees
• Glocalization, the Big Mac Index and regional menu items
• Health backlash, labor controversies, automation and customer data