Drudge Retort: The Other Side of the News
Wednesday, November 21, 2018

"We are not basically in the food business," former McDonald's CFO Harry J. Sonneborn reportedly told investors. "We are in the real estate business. The only reason we sell 15 cent hamburgers is because they are the greatest producer of revenue from which our tenants can pay us rent." Being able to hand off the costs of running the restaurants is a primary key to McDonald's success. According to Wall Street Survivor, in 2014, the company made $27.4 billion in revenue, with $9.2 billion coming from franchised locations and $18.2 from company-owned locations.

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Franchise fees are what keeps this behemoth afloat. Poor saps pay for most everything.

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Wow. It's actually criminally genius, if you think about it.

#1 | Posted by kudzu at 2018-11-21 08:39 AM | Reply

It's not about "food" for more than one reason.. Because the ---- they sell doesn't qualify as food. McDonalds hasn't made a dime off me in over a decade.

#2 | Posted by lfthndthrds at 2018-11-21 09:03 AM | Reply

Not to be critical of the thread poster, but this has known and stated for years.

#3 | Posted by memyselfini at 2018-11-21 01:46 PM | Reply

Gimme that old-time rent-seeking behavior!

#4 | Posted by snoofy at 2018-11-21 01:51 PM | Reply

Somebody just got around to watching The Founder. The system exists to replace noncomformist franchise owners.

#5 | Posted by sitzkrieg at 2018-11-22 08:07 AM | Reply

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