Reading 2021-10-06


  • Ref:: PolyMatter
  • Title:: How McDonald's Really Makes Money
  • Author:: PolyMatter
  • Year of publication:: 2020
  • Category:: Blog
  • Topic::

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