Consumers think of McDonald as a burger restaurant,but in the business world,McDonald is considered a real estate company. While the brand has sold more than one billion hamburgers to customers around the world,85% of its stores are owned by franchisees.
People also ask
How McDonald became a real estate company?
Ray created a new company called the 楳cDonald Real Estate Corporation?which acquired land and leased it out to franchise partners. This helped him create what is a $53 Billion (2020) real estate business. So What is McDonald Strategy Story of becoming a Real Estate company?
How did McDonalds get started in business?
That all changed in 1956 when he hired Sonneborn, who convinced him that the real money was in real estate. Sonneborn’s idea was to have the McDonald’s company lease a plot of land and the building for each restaurant. The company would then sublease to the franchisee who would run the restaurant.
Is McDonalds a fast food company?
Technically Mcdonald’s is not a fast-food company. Mcdonald’s is a massive real estate management company with total assets of $47 Bn. What’s the strategy story?
Is McDonald’s a diversified business?
McDonald is a great example of how diversification helps to not just grow a business income but also lower its financial risks. McDonald is both a fast food and real estate business. As a fast food company, it doesn just operate its own restaurants, it also franchises the brand.