Introduction
McDonald’s is the largest fast food chain in the world. It has more than 39,000 restaurants in 100 countries. But what many don’t know is that McDonald’s is also one of the largest real estate companies in the world.
In fact, in McDonald’s owns more than 40% of the real estate occupied by its restaurants. This means that the company has billions of dollars worth of assets.
In this article. We take a look at the story of McDonald’s and how it became one of the largest real estate companies in the world.
Beginning
McDonald’s was founded in 1940 by Richard and Maurice McDonald. The brothers owned a small restaurant in Santa Monica, California.
In 1954. Ray Kroc, a successful franchisor, bought the rights to the McDonald’s franchise. Kroc was convinced of the company’s great potential, and began rapid expansion.
In 1961. Kroc bought McDonald’s from the McDonald brothers. At that time. The company had 24 restaurants.
Expansion
Kroc continued to expand at McDonald’s. The company quickly became a global brand. In 1965. The company had 100 restaurants. In 1970. It had 1000 restaurants.
One of the keys to McDonald’s success has been its standardized operating model. Kroc set strict standards for food quality and service. And make sure all restaurants follow these standards.
Kroc also focused on marketing, and helped make McDonald’s a globally recognized brand.
Real estate
Initially, at the beginning. McDonald’s used to rent the real estate occupied by its restaurants. However, the In 1965. The company started buying its own real estate.
There were several reasons behind McDonald’s decision to buy its own real estate. First. This gave the company more control over its operations. Secondly. This led to increased profits in the long run. Thirdly. This gave the company an opportunity to expand its real estate business.
Real estate expansion
McDonald’s continued to expand its real estate business in the following decades. In 1980. The company owned about 10% of the real estate occupied by its restaurants. In 2000. She had about 30% of these properties.
Today. McDonald’s owns more than 40% of the real estate occupied by its restaurants. This represents billions of dollars worth of assets.
Real estate benefits
McDonald’s has a number of benefits from owning its own real estate. First. This gives it more control over its operations. The company can choose restaurant locations that it thinks will be successful. They can also make adjustments to restaurants as needed.
Secondly. Owning your own real estate increases profits in the long run. The company can rent real estate to other restaurants. This provides her with a steady source of income.
Thirdly. Owning one’s own real estate provides the company with an opportunity to expand its real estate business. The company can buy more properties and develop them. This can lead to increased profits in the future.
Conclusion
McDonald’s is one of the largest real estate companies in the world. Owning its own real estate has helped it achieve long-term success.
Key points
- McDonald’s is the largest fast food chain in the world.
- McDonald’s owns more than 40% of the real estate occupied by its restaurants.
- McDonald’s began buying its own real estate in 1965.
- Owning one’s own real estate offers a number of benefits. Including more control over operations, increased profits, and the potential for expansion.
