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 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.
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.
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 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
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
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
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
Your scene
