Hi!
I’ve heard (maybe from “The Founder” movie) that McDonald’s is actually making money from lending lands to local McDonald’s business owners. But I’m not sure.
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Is (Was) it true? If so, is it STILL true?
Is the reality a little bit more “nuanced”?
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Thanks!
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On p. 11 of this [2022 annual report](https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/MCD_2023_Annual_Report.pdf), McDonald’s summarizes its revenues into three categories.
Revenues | Amount
—|—
Sales by Company-operated restaurants | $8,748
Revenues from franchised restaurants | $14,106
Other revenues | 329
(Amounts are in millions.)
The report explains on p. 13 that these “revenues from franchisees include rent and royalties based on a percent of sales with minimum rent payments, and initial fees.”
So, around 60% of their revenues are from rent and royalties based on sales in those rental units.
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