arrow
June 8, 2022

McDonald’s: Real Estate Brought Real Success

Sure, “having fries with that” has helped McDonald’s become a corporate behemoth but in reality, Maccas is what it is today thanks to well-structured and strategic approach to realestate investment. The below clip from the 2016 film, The Founder, apparently quite accurately portrays how it all came about and although the movie itself is great, the full story behind the brand is even better.  

We’ll touch on some of it once you’ve had a look at the clip below …

 


Former McDonald’s CFO, Harry J. Sonneborn (portrayed in “The Founder”), was once quoted as saying:

“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.”

In itself, this quote reveals the strategy behind the business – the company acquired real estate and leased it to its franchisees. In the decades that followed this strong real estate base financed the building of thousands of restaurants all over the world.

McDonald’s today is worth billions of dollars because of a fundamental decision to restructure their cash flow, allowing them to acquire property, and to secure a steady demand for tenancy. The success of the franchise, the popularity of the food and how it was marketed obviously helped drive demand, but ultimately generating rental income was the goal and the outcome.

It’s important to note here that they started out with little or no equity.

This essentially is how as a property investor, your structure works: You’re supplying property to tenants to finance the building of a realestate portfolio which will ultimately create sustained capital growth overtime for you. As McDonald’s did, duplicating the same process in the right locations and with the right strategy enables serious numbers to start appearing in balance sheets.

 

This concept and method is nothing new, it happens all over the world and there’s no reason you couldn’t make it happen for yourself just likeMcDonald’s founder, Ray Croc.

Structuring your finances and having a strategy for how you’ll manage the money in and out of investments like these is the key to real success. So, if you’re looking for sound, strategic advice to help you reach financial freedom, speak with the Attune team today – give us a call on 1300 866 113 or send us an email to start the conversation.

Attune Advisory
.
Business Advisory
.
Business Ideas
.
Share
Share
White Arrow
White Arrow
arrow
Categories
COVID-19 NEWS
Australian Government Grants
Business Advisory
Accounting
Popular Keywords
Australian Grants
.
COVID-19
.
ATO
.
Australian Government Grants
.
Entrepreneur
.
Business Ideas
.
entrepreneur
.
Attune Advisory
.
Strategic Advisers
.
Business Strategy
.
Business Advisory
.
Sydney Accountant
.
Self Managed Superannuation
.
Australian Taxation
.
Financial Goals
.
Retirement
.
Family Trust
.
Succession Planning
.
Payroll
.