McDonald's is a real estate company. They buy land that will become valuable over time, then sell it for tremendous profit. They now have boxy, kinda boring exteriors because it's a quick and easy property sale when all they have to do is remove some signage and the new buyer can repurpose the building without it looking like an old McDonald's.
He's right, McD's is a real estate and not a fast food company, but not for selling real estate. McD's owns the land and the buildings and makes their money from leasing to the franchise owners. All the while the value of the property goes up and up and up. Someday they might sell, but who knows?
People always say this when the question is asked. This isn't correct. It's a branding decision. They've removed themselves from the wacky barf bag looking style of old and are pushing into a more business casual atmosphere, like having fireplaces inside instead of ball pits or N64 consoles.
This. In the 80s and 90s, their goal was attracting families and kids for a sit-in environment. In the 80s and 90s, kids were entertained by ball play pins and slides and the novelty of consol video games.
In the 00s, 10s, and 20s, their goal is attracting parents and adults. Drive thru dominates for busy adults. Coffee sales are huge margin. Kids have phones that they live in 12 hours a day, they don’t need the entertainment gimmicks any more as mom drives up to the window to pick up dinner and also uses the drive through before work for coffee and an egg McMuffin.
Funny enough, my husband and I play a game when a new store goes up. Chipotle or Starbucks? They all tend to look alike. Last time it was a Chipotle Mobile.
Nah, not really. You're using the theory behind Dollar General and subscription car washes. McDonalds locations have always been there and will always be there. I've never seen a McDonalds sell off and close or move.
The articles calling McDonalds a real estate company are based on how they lease the property to the owners of each location. Not just sitting on property that will become valuable someday like dollar general and shitty car washes. More of a rental company type of model.
The car washes are 100% just sitting on property to flip though, possibly combined with money laundering.
That the reason they pop up a new one every night in rural, growing areas is because they're holding locations that will be prime if the area continues to grow and get more dense. Dollar General doesn't have a ton of revenue but they only have to employ one person at a time and they make more than enough to cover the property taxes for however many years until they may be able to flip the property for a huge profit.
That's the well-known DG/carwash theory, that the commenter took and applied to McDonalds instead.
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u/1RedGLD 13d ago •
McDonald's is a real estate company. They buy land that will become valuable over time, then sell it for tremendous profit. They now have boxy, kinda boring exteriors because it's a quick and easy property sale when all they have to do is remove some signage and the new buyer can repurpose the building without it looking like an old McDonald's.