<h1 id="reading-2021-10-06">Reading 2021-10-06<a aria-hidden="true" class="anchor-heading icon-link" href="#reading-2021-10-06"></a></h1>
<h2 id="metadata">Metadata<a aria-hidden="true" class="anchor-heading icon-link" href="#metadata"></a></h2>
<ul>
<li>Ref:: <a href="https://www.youtube.com/watch?v=kJVj3vp-lho">PolyMatter</a></li>
<li>Title:: How McDonald's Really Makes Money</li>
<li>Author:: PolyMatter</li>
<li>Year of publication:: 2020 </li>
<li>Category:: Blog</li>
<li>Topic:: </li>
</ul>
<h2 id="notes-from-reading">Notes from reading<a aria-hidden="true" class="anchor-heading icon-link" href="#notes-from-reading"></a></h2>
<p>McDonald's is a real estate company with <code>Property and equipment before depriciation</code> equivalent to USD 39b <a href="https://corporate.mcdonalds.com/content/dam/gwscorp/nfl/investor-relations-content/annual-reports/2019%20Annual%20Report.pdf#page=50">2019 annual report</a>. That make it the fifth-largest real estate holder in the world, measured by total assets.</p>
<p>In 2019, 64% of its revenues are from rent, 35% are franchise royalties, 1% from Initial fee.</p>
<p>McDonald buy location estate then lease it to franchisee.
Typical length of franchise contract is 20 years.</p>
<p>An average McDo makes $2.7M in sales revenues, and take-home net profit is $154k </p>

Mcdonalds Business Model

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