- Ref:: PolyMatter
- Title:: How McDonald's Really Makes Money
- Author:: PolyMatter
- Year of publication:: 2020
- Category:: Blog
Notes from reading
McDonald's is a real estate company with
Property and equipment before depriciation equivalent to USD 39b 2019 annual report. That make it the fifth-largest real estate holder in the world, measured by total assets.
In 2019, 64% of its revenues are from rent, 35% are franchise royalties, 1% from Initial fee.
McDonald buy location estate then lease it to franchisee. Typical length of franchise contract is 20 years.
An average McDo makes $2.7M in sales revenues, and take-home net profit is $154k