McDonalds business model is to own real estate and lease it to franchisees, and to sell those franchisees supplies to make hamburgers and fries so they can pay

McDonalds business model is to own real estate and lease it to franchisees, and to sell those franchisees supplies to make hamburgers and fries so they can pay the rent. It’s a commercial real estate company with extra steps, not a restaurant company. Once you understand that, McDonalds net margins are easier to understand. Google ‘McDonalds real estate’ for a longer write up about the business model of McDonalds