McDonald’s most spectacular feat is just not that it rose to the highest of the fast-food chain; it is that it managed to remain there.
The chain was based in 1940, however its true rise to prominence got here within the Nineteen Seventies. It was a easy mannequin primarily based on providing sizzling meals shortly with an expertise that was the identical regardless of the place you had been.
That mannequin slowly exanded throughout america and finally across the globe. Whether or not you are in Paris, France, or Paris, Texas, a Massive Mac and fries served with a Coke will style precisely the identical.
“Our goal was to insure repeat enterprise primarily based on the system’s fame reasonably than on the standard of a single retailer or operator,” founder Ray Kroc mentioned in his e-book, “Grinding It Out: The Making of McDonald’s”.
And whereas rivals Wendy’s and Burger King have been closing eating places, McDonald’s has an aggressive enlargement plan.
“McDonald’s Company is accelerating its world enlargement technique with a transparent goal: reaching 50,000 eating places worldwide by the tip of 2027. The corporate views restaurant improvement as a core pillar of long-term development, even because the quick-service restaurant trade navigates a difficult client surroundings,” in line with Zacks.com.
It is a development path that will put McDonald’s on tempo to finally cross Subway as the biggest restaurant model on this planet. That is a title that Subway has held since 2011.
Subway holds the worldwide crown
Subway is the world’s largest restaurant chain by variety of places. The corporate surpassed McDonald’s in america in 2002, however the sandwich chain has now additionally handed McDonald’s worldwide, in line with the USA In the present day Community.
Subway took the U.S. crown greater than 20 years in the past and has not given it up.
“The Milford-based chain operates 13,247 shops in america, 148 greater than McDonald’s as of Dec. 31. Subway, began by Fred DeLuca in 1965, opened 904 items final yr, whereas McDonald’s opened 295,” Fox Information reported in Feb. 2002.
Even then, nevertheless, McDonald’s was nonetheless, in some methods, a much bigger model than Subway.
“The truth that there are extra Subway eating places in america could also be a lift in visibility, however doesn’t add as much as large monetary beneficial properties, mentioned Mark Kalinowski, a fast-food analyst with Salomon Smith Barney.
Extra Eating places
“When you have an individual strolling down the road or driving alongside of their automobile, they will see extra Subways. It is a comfort issue to have quite a lot of items open. However finally, from a monetary perspective, it isn’t that huge of a deal,” Kalinowski mentioned.
In recent times, nevertheless, Subway has been transferring within the incorrect path.
Subway has been steadily shrinking
Subway has closed roughly one-third of its U.S. eating places since 2016. The decline began after the 2015 arrest of its long-time spokesperson Jared Fogle on costs of kid pornography and intercourse with a minor.
“United States Legal professional Josh J. Minkler introduced at the moment the submitting of formal costs towards Jared S. Fogle for distributing and receiving youngster pornography, and conspiring to take action, in addition to repeatedly touring to interact in industrial intercourse acts with underage minors. Fogle, 37, of Zionsville, Indiana, was charged by Data and has notified the U.S. District Court docket that he’ll plead responsible to all costs,” in line with an FBI press launch.
You’ll be able to’t blame Subway’s decline on Fogle’s arrest, but it surely was a consider beginning its downturn.
“They need to acknowledge they’re in a horrific scenario after which pivot again to the truth that the spokesperson’s actions will on no account have an effect on the model’s dedication to offering clients with a wholesome fast-food different,” Patrick Hillman, a vp at Levick Communications, a public relations agency that focuses on disaster administration, instructed Advertising Dive.
The chain instantly reduce ties with Fogle when his arrest was made public.
Subway retains shrinking
Subway’s decline has been regular.
“Subway’s U.S. retailer rely declined for a tenth straight yr in 2025 because the model continues to rightsize its footprint,” in line with QSR Journal.
The chain’s retailer rely has been falling because it hit 27,000 in 2015.
“Between 2016 and 2025, the chain closed a internet of 8,345 eating places — that determine alone would rank among the many prime 5 largest chains in America,” the indiustry publication shared.
Subway retailer closures by yr:
Why is Subway struggling?
“The easy clarification for this decline is that same-store gross sales have been falling since 2012, and unit rely has adopted. The chain has neatly in the reduction of on unit development whereas it really works to recuperate these misplaced gross sales, and unit closures end in a modestly smaller idea,” wrote Restaurant Enterprise Editor in Chief Jonathan Maze on Nation’s Restaurant Information.
Increasing too quick damage the chain’s franchisees.
“Operators inform me privately that aggressive improvement over that interval cannibalized present places and damage unit economics,” Maze wrote.
That decline displays greater than cyclical strain, in line with trade analysts. It factors to a long-running situation with retailer saturation and franchise profitability.
“Shops that had been exceptionally robust 5 years in the past are a lot weaker now,” one franchisee instructed Maze.
Subway’s message additionally grew stale, in line with Meals Community character Ali Khan.
“Within the early 2000s, Subway’s ‘Eat Contemporary’ branding resonated with a health-conscious public in distinction to McDonald’s. Jared Fogle (earlier than his scandal) grew to become the face of its weight-loss advertising. However over time, new fast-casual opponents with an eye fixed on high quality like Chipotle and Jersey Mike’s opened the door to a brand new period of upper high quality chain quick meals that supplied a brand new possibility: higher quick meals (albeit dearer),” he posted.
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This story was initially revealed by TheStreet on Might 2, 2026, the place it first appeared within the Eating places part. Add TheStreet as a Most well-liked Supply by clicking right here.
