McDonald's is the world's largest chain of hamburger fast food restaurants. They open more stores a year than there are Chipotle locations worldwide. In fact, McDonald's has nearly $30 billion in real estate holdings, making it one of the largest commercial real estate owners in the world.
Does Mcdonalds make the most real estate?
Better put, McDonald's has more than $30 billion in real estate assets, and annual profits that float around $4.5 billion, according to company financial disclosures.
Is McDonald's really a real estate company?
McDonald's isn't just a fast-food chain—it's a brilliant $30 billion real-estate company. But rather than collect a lot in royalties or sell its franchisees cooking equipment, McDonald's makes much of its revenue by buying the physical properties and then leasing them to franchisees, often at large mark-ups.
Does McDonalds own the most real estate?
The company owns about 45% of the land and 70% of the buildings at their 36,000+ locations (the rest is leased).Jan 6, 2022
What percentage of real estate does McDonalds own?
How much land does McDonald's own? The company owns about 45% of the land and 70% of the buildings at their 36,000+ locations (the rest is leased). It's a brilliant strategy. Being able to collect on rents helps insulate them from the ups and downs of the business of flippin' burgers.Jan 6, 2022
Who owns the most real estate?
John Malone is the largest private landowner in the United States. Malone made his fortune as a media tycoon, building the company Tele-Communications, Inc, or TCI, and acting as its CEO before selling it to AT&T for $50 billion in 1999.
How McDonalds is in the real estate business?
Consumers think of McDonald's as a burger restaurant, but in the business world, McDonald's is considered a real estate company. Franchisees pay McDonald's a cut of their food sales, but a much larger portion of McDonald's revenue comes from the rent it's paid on its real estate.
Does McDonald's make more money from real estate?
Between the burgers and the land, McDonald's makes a lot more of its money on the land. McDonald's owns thousands of iconic pieces of real estate around the globe. Franchisees pay McDonald's a cut of their food sales, but a much larger portion of McDonald's revenue comes from the rent it's paid on its real estate.
Is McDonald's the biggest real estate company in the world?
In its 2020 Financial Report, the company reported 41 billion dollars worth of assets in property & equipment before accounting for depreciation, making it the 7th largest real estate company in the world even if we were to deduct the 3.5 billion dollars worth of equipment from the total $41 billion figure.
Where does McDonald's make most of their money?
Essentially, McDonald's makes money by leveraging its product, fast food, to franchisees who have to lease properties, often at large markups, that are owned by McDonald's. As reported in their 2019 10-K, 36,059 of the 38,695 restaurants were franchised with McDonald's operating the remaining 2,636 restaurants.