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> "McDonalds is actually a real estate company and not a hamburger company because they make more money from rent than from food" I find this interesting. Are
by ZenoArrow 11y ago
> "McDonalds is actually a real estate company and not a hamburger company because they make more money from rent than from food"
I find this interesting. Are McDonalds making most of their revenue from real estate rents from their franchisees and/or those involved in their supply chain, or is the bulk of this land outside their hamburger business?
- jonknee 11y agoMcDonalds is an interesting case in that they own all (well, almost all) the real estate for all the restaurants. The franchise owners pay rent based on sales which can end up being hefty. Some activist investors are pushing them to spin off that real estate into a REIT so that both sides of the business can be more fairly valued. Dollars wise McDonalds does make more in rent than in selling food (by about 2x).
- eru 11y agoYou have to take into account that McDonalds is a franchise, so the system company doesn't actually sell much food. (The individual restaurants do.)