Of note, McDonalds itself is essentially a real estate company, holding title to most of the land that the franchises are on. Valuation and liquidity wise most of the corporation’s operating costs are likely tied into this. They have around 35 billion in long term debt, they are probably restructuring around not getting hung out to dry if the assets backing their debt sheds significant value.
Of note, McDonalds itself is essentially a real estate company, holding title to most of the land that the franchises are on. Valuation and liquidity wise most of the corporation’s operating costs are likely tied into this. They have around 35 billion in long term debt, they are probably restructuring around not getting hung out to dry if the assets backing their debt sheds significant value.
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While the corporation makes most of its money from real estate rentals as landlords of the franchisees, they stand to be huge losers should there be beef and chicken supply problems, as planned by our overlords. Most franchisors issue contracts that require their franchisees to pay rent based on their gross sales. Sometimes the rent is a fixed percent, sometimes it’s on a sliding scale, and sometimes it’s fixed for the first $XXX in sales, then a percent of the excess over the base sales. Any drop in sales affects the rental income of the corporation. It makes me wonder if they have inside information about an event that is going to cause a huge drop in sales.