Property Abroad
Blog
McDonald'Äôs: The Amazing Billion Dollar Method Beyond Burgers.

McDonald'Äôs: The Amazing Billion Dollar Method Beyond Burgers.

make more money, right?

In fact, McDonald'\''s doesn't make much revenue from its menu. Through the first three quarters of 2023, the company generated more than $7.3 billion in revenue from something that has nothing to do with hamburgers or fries. And amazingly, it is the biggest source of revenue for the company.

Even more important to investors is that this underappreciated business model can be considered its real competitive advantage, or, in other words, moat. Harry J. Sonneborn was one of McDonald'\''s first employees and said: "We're not technically in the food business. We're in the real estate business." That's right, Mickey D'\'s is one of the largest real estate empires in the world. As of the third quarter of 2023.

"There are 41,200 McDonald'\'\''s restaurants in more than 100 countries. Yet the company itself operates only about 2,100 of them. The rest are owned and operated by its franchisees.

The company has relatively few restaurants of its own, so you might think it doesn't have much real estate. But the balance sheet shows that it has $42 billion worth of real estate and equipment. Management understood the benefits of owning real estate long before the battle. That's why they have many locations operated by their franchisees. In return, franchisees are required to pay rent every month, in addition to franchise fees.

As noted, McDonald'\'™s earned more than $7.3 billion in rent in 2023. That amounts to

We will find property for you

  • 🔸 Reliable new buildings and ready-made apartments
  • 🔸 Without commissions and intermediaries
  • 🔸 Online display and remote transaction

Popular Posts

Subscribe to the newsletter from Hatamatata.com!

I agree to the processing of personal data and confidentiality rules of Hatamatata

Need advice on your situation?

Get a  free  consultation on purchasing real estate overseas. We’ll discuss your goals, suggest the best strategies and countries, and explain how to complete the purchase step by step. You’ll get clear answers to all your questions about buying, investing, and relocating abroad.

Vector Bg
Irina

Irina Nikolaeva

Sales Director, HataMatata