McDonalds...Makes Their Money...Not From Burgers...But From

McDonalds makes their money from:

  • Real Estate - Renting The Land

McDonalds - Former McDonald’s CFO, Harry J. Sonneborn, said:

  • “We are not technically in the food business. We are in the real estate business. The only reason we sell fifteen-cent hamburgers is because they are the greatest producer of revenue, from which our tenants can pay us our rent.”

Ideally, Mobile Home Parks also make their money from:

  • Real Estate - Renting The Land

Recently, my Husband and I had the wonderful opportunity to watch the movie:

  • “The Founder”

Since we have 3 boys in elementary school, the majority of our movies are animated :-).

Thus, when I was at Redbox renting “Sing” (animated) and Redbox offered money off a second movie, I decided to rent an actual adult movie…“The Founder”.

Wow…“The Founder”…what a very, interesting movie.

In the movie there are some moral, ethical and legal issues.

However, the whole Business Model of McDonalds is absolutely fascinating and McDonalds has one of the same Business Models as a Mobile Home Park…Renting The Land.

5 Likes

Good stuff, and interesting. I owned a land/lease contract on a McDonalds for some years and sold it for a 4.2% cap. It was a good investment.

2 Likes

Interesting, I didnt know this :smiley: