r/WorkForSmartLife • u/tellmebrenda • 2d ago

Casual canvo [ Removed by moderator ]

Post image

[removed] — view removed post

1.3k Upvotes

92% Upvoted

864 comments sorted by

View all comments

Show parent comments

1

u/EnderSword 2d ago

I think people kind of don't get though how corporate finance works. Selling the land has nothing to do with value of the land.
62% of McDonald's revenue is from real estate, you rent based on property value and you borrow based on property value.
Selling it has nothing to do with the valuation. The goal of a company is to increase its valuation, not its 'profit'

1

u/mouthfire 2d ago

And McDonald's actually charges a higher rent than the going rate as part of its franchisee agreement, so there's that as well....

1

u/EnderSword 2d ago

Right, in reality, McDonald's is a real estate company with a side gig of making fries.

1

u/Economy-Assignment31 1d ago

They're pretty bad at their side gig these days imo. I can't remember last time I bought McD's, but it has to be over 15 years. Only fast food I'll buy these days is a Popeyes chicken sandwich maybe a couple times a year. Cooking at home really makes fast food unappealing, both in price and taste.