What is the actual business model of McDonald’s?

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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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5 Answers

Anonymous 0 Comments

McDonalds Corporation is a significant owner of real estate. That said, real estate is paid for by the sales of food.

Sears was actually a huge release owner, but their stores were unable to pay for the real estate and the business collapsed. (There is a lot more to that story, but that is a simple version.)

This article explains what happened and why
https://thestrategystory.com/2020/09/24/mcdonalds-real-estate/

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