McDonald's began in 1940 as a barbecue restaurant operated by the McDonald brothers in California. It was reorganized in 1948 as a hamburger stand using production line principles. In 1955, Ray Kroc franchised McDonald's from the brothers and established it as the world's first McDonald's restaurant. Over the following decades, McDonald's grew to over 34,000 restaurants globally by focusing on consistency, innovation, resiliency, and maintaining goodwill while delivering quality, service, cleanliness, and value. However, challenges include health concerns, competition, and maintaining its core values during expansion.