Restaurant ownership: operations, property and revenue

Restaurant ownership divides three responsibilities: running the business, investing in its locations and reporting the money customers spend.

Who runs the restaurant#

Chipotle owned 3,938 U.S. restaurants and 104 international restaurants at December 31, 2025. Its 2025 annual filing also counted 14 international restaurants operated by partners. That category covers license or franchise arrangements and minority investments where Chipotle lacks a controlling financial interest and does not directly manage daily operations.

Within Chipotle, departments including operations, training, culinary and food safety develop and implement restaurant standards. Those responsibilities include food preparation, cleanliness and employee health protocols.

McDonald’s 2025 filing describes a predominantly franchised system: approximately 95% of its restaurants were franchised at year-end. Independent franchisees control employment, marketing and pricing decisions while adhering to company standards. McDonald’s also operates restaurants itself.

Who invests in the location#

Chipotle reported $666.3 million in capital expenditures for 2025. Development and construction averaged about $1.5 million per new restaurant, or $1.3 million after landlord reimbursements. Chipotle says the first planned use of operating cash flow, after funding restaurant and support-center operations, is continued investment in new restaurant construction.

McDonald’s conventional franchise arrangement divides the investment. The company generally owns or leases the land and building; franchisees pay for equipment, signs, seating and décor. Franchisees must reinvest in their businesses, and McDonald’s may co-invest in improvements. Under developmental licenses, licensees supply capital, including the real estate interest, and manage and develop restaurants. McDonald’s generally supplies no restaurant capital under that arrangement.

Company operation also differs from property ownership. Shake Shack’s 2025 annual filing says it leases every company-operated restaurant and owns or leases none of the property associated with its licensed restaurants.

What becomes company revenue#

Shake Shack reported 373 company-operated restaurants and 286 licensed locations at December 31, 2025. Its licensed business included both U.S. and international restaurants. U.S. licensed locations included airports, travel plazas and entertainment venues.

Its system-wide sales measure combines customer spending at company-operated and licensed restaurants. Sales at licensed locations do not become Shake Shack’s corporate revenue. Instead, the company recognizes licensing revenue from royalties tied to sales and certain fees. The fee categories include territory, opening and termination fees. Sales-based royalties are recognized as the corresponding restaurant sales occur. Company revenue therefore measures a different flow of money from customer spending across the system.

At McDonald’s, conventional franchisees pay rent, royalties and initial fees to the company. Conventional franchise royalties are based on a percentage of sales; rent includes specified minimum payments. Company-operated restaurants contribute their restaurant sales to corporate revenue.

CAVA’s May 19, 2026, results supply a separate example of what happens after restaurant revenue is recorded. It ended the 16-week quarter on April 19 with 459 company-owned CAVA restaurants. Its restaurant-count definition excludes licensed restaurants and Digital Kitchens. The associated CAVA revenue measure also excludes sales from restaurants operating under license agreements.

To calculate restaurant-level profit, CAVA subtracts food, beverage and packaging costs, labor, occupancy and other operating expenses from restaurant revenue. That measure excludes depreciation, amortization and pre-opening costs.