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McDonald’s is an interesting company to mention. McDonalds corporate isn’t even really in the fast food business, they’re a real estate company. Franchisees hav
by donatj 3y ago
McDonald’s is an interesting company to mention. McDonalds corporate isn’t even really in the fast food business, they’re a real estate company. Franchisees have to rent land from corporate, that’s how they make almost all their money.
Individual McDonald’s Restaurants are barely profitable, most stores bringing in less than $100k profit per year. For how widespread they are, the restaurants themselves really aren’t a great business to be in.
- Rapzid 3y agoFranchise owner makes 150k average on a store. Everything is purchased through corp so a tremendous amount of store revenue flows through them. The money for any land leasing comes from the fast food revenue. That is to say, it's an overly reductive assessment that McDonald's is not in the fast food business.
- deleted 3y ago[deleted]
- tracker1 3y agoNot only that, but their Board seems to make much of their money on adjacent business as well (such as required equipment).