Swiss 'Big Macs' Are 44% More Expensive Than In America 🍔

[DarkRange55]

"The Big Mac Index, created by The Economist in 1986, started out as a simple tool to make currency theory more digestible. Now, it's a widely-known measure in popular economics to assess and compare currency valuations.
In short, the Big Mac index compares the purchasing power parity (PPP) of currencies using the price of a Big Mac in the U.S. as the benchmark. It shows how much a Big Mac costs in various countries compared to the U.S., but it also works as a way to assess exchange rates."

Mapped: The Price of a Big Mac Across the World

The price of a Big Mac varies substantially across the globe. The Big Mac Index uses these price variations to assess currency valuations.

www.visualcapitalist.com

The Big Mac Index: A Measure of Purchasing Power Parity & Burger Inflation

Spanning from 2004-2022, this animation of the Big Mac Index shows the rise in burger prices, and which currencies may be under or overvalued.

www.visualcapitalist.com

 

[Praestat_Mori]

I'm not sure, but I heard of this index long ago. Anyway, I neither consider McD food good nor valuable for everyday food. In respective countries, it might still be cheaper to cook healthy food at home every day instead of eating at McD's.

The country where I live isn't listed, but I'm pretty sure that for the avg. price of a McD meal, I can cook a healthy meal at home that lasts for several days.

 

[untothedepths]

It might be more expensive, but people who live in those regions seem to be overall doing pretty well, as far as I can tell. The economic disparity between it and other countries is pretty stark.

 

[Forever Sleep]

As I understand it, Mc Donalds is actually more of a real estate company rather than a food outlet. The company itself is a landlord basically that gets its money (rent) from all the restarants that have to make their own money by selling its products. It's up to the individual restauraunts what they charge I suppose.

So, maybe the cost of the products they sell are dictated by the cost of land in each country. Plus, demmand I suppose. If the Swiss know they're going to sell less hamburgers, they'll need to charge more for them. That, or I suppose it could be regulations by governments maybe to try and get people to eat healthier. Are there taxes they can put on fast food?

Anyway, the McDonalds story is quite interesting. Have you seen the film: 'The Founder', 2016? Here's an article about the whole real estate theory:

Mcdonald's Real Estate: How They Really Make Their Money - Wall Street Survivor

McDonald’s is one of the biggest real estate companies in the world. It owns $28.4 billion worth of land and buildings (before depreciation).

www.wallstreetsurvivor.com

 

[DarkRange55]

As I understand it, Mc Donalds is actually more of a real estate company rather than a food outlet. The company itself is a landlord basically that gets its money (rent) from all the restarants that have to make their own money by selling its products. It's up to the individual restauraunts what they charge I suppose.

So, maybe the cost of the products they sell are dictated by the cost of land in each country. Plus, demmand I suppose. If the Swiss know they're going to sell less hamburgers, they'll need to charge more for them. That, or I suppose it could be regulations by governments maybe to try and get people to eat healthier. Are there taxes they can put on fast food?

Anyway, the McDonalds story is quite interesting. Have you seen the film: 'The Founder', 2016? Here's an article about the whole real estate theory:

Mcdonald's Real Estate: How They Really Make Their Money - Wall Street Survivor

McDonald’s is one of the biggest real estate companies in the world. It owns $28.4 billion worth of land and buildings (before depreciation).

www.wallstreetsurvivor.com

"It's worth noting that this measure is relatively simplistic and doesn't account for some factors like taxes, local production costs, and market barriers."

Franchised properties set their own prices because costs vary: labor, tax, rent, shipping, ect.

Why McDonald's Prices Vary Drastically Depending On The Location - The Daily Meal

McDonald's allows their franchise owners autonomy over many business decisions, including pricing. Here's why McDonald's prices vary depending on the location.

www.thedailymeal.com

Yes! Some properties are mainly held for the land appreciation. Hotel owners are like CVS Pharmacy, Walgreen and McDonalds corporate owned land franchises, they will overpay for the prime land for a standout location and that is all that matters. Rent pays for the land operating costs and the land has to appreciate in areas of growth. The Money Multiplier has always worked when catastrophes don't get in the way.

According to McDonald's latest 10-K annual corporate report, McDonalds franchises most of their American properties (84%?). They make more money from the franchised locations than the corporate-owned stores. They also get to choose the location.
The company's goal is to have 95% of its restaurants owned and operated by franchisees, leaving only 5% for the company to run.

https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/2023%20Annual%20Report_vf.pdf

But yes, McDonald's first CFO came up with this strategy. My dad is neighbor's with the family of the founder (I think they mean Ray Crock and not the McDonalds brothers). The Wendy's co-founder's (Dave Thomas?) family also live right there.

Grinding It Out is a good book

Grinding It Out: The Making of McDonald's https://a.co/d/dhAxRI6



Nice little dividend, solid financials and gives international exposure. Not as growth oriented as something like Chipotle. Last time I looked roughly 50% of McDonalds sales are outside the U.S.

My friend bought into the franchise and has a couple properties.

McDonald's global revenue by region 2023 | Statista

McDonald's has earned the majority of its revenue in international operated markets. However, the U.S. is responsible for the second highest revenue share.

www.statista.com

Ranked: Fast Food Brands with the Most U.S. Locations

An overview of America’s fast food landscape, as of 2022, visualizing the top fast food brands with the most stores in the country.

www.visualcapitalist.com

Ranked: Biggest Fast Food Chains in America

Every year, fast food chains rake in north of $200 billion in revenue per year. Here are the biggest chains, ranked by revenue and number of locations.

www.visualcapitalist.com

Ranked: The 50 Most Popular Fast Food Chains in America

What’s America been craving? Here’s a look at the top 50 most popular fast food chains, ranked by U.S. sales in 2019.

www.visualcapitalist.com

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