Gross 2.7M, net $150K?
I’m not too sure about the accuracy of this. First of all, I’m under the impression that the typical MC d’s does not do $2.7 million. Utilities seem a bit high but I guess they might be accurate. I have a very hard time believing a typical Mc D’s pays $32,000 monthly+ for rent. If fact I would probably not believe that figure if it was cut in half. $4500 per month in insurance? A whole lot of this just doesn’t seem right.
Things I thought about were: insurance probably includes any state mandated health care coverages, plus management health plans. A state like California can skew the “average” statistics a ton. We need the standard deviation stuff to see how much it goes up and down from that average.
Rent and fees: this is going to include outrageous costs like airport concessions, stadiums, casinos, amusement parks and all that. Again, I can see the averages being skewed off by the high cost places. That said, 14.5% does seem awfully high for that segment of the food business. Maybe those fees include gratuities to local building departments in places like Chicago, Philly and New York. Heck, ‘protection’ plans may even be in the insurance figures.
Yo Nick… Bruno & Vinny will be there shortly to drop off those girl scout cookies you ordered from me. $5000 per box. Gotta love those thin mints! :shock:
Franchise fees may be included under “Rent and Fees.”
Rent paid to owner (inflated to $32000) looks like a income diversion for the purpose of taxation @ a investment rate rather than opperations income gets complicated but if the owner of the Mc D’s owns the building and Bus sepperately could be a factor.
As far as I know, in Canada very few local owners actually own their buildings…They lease a fully equipped and updated premises from Mother Corp…
McDonald’s is 1st and foremost a real-estate company: http://seekingalpha.com/article/73533-m … te-company
They own the property and lease it back to the franchisees. Read “Grinding it Out” by the man himself Ray Kroc to get a better idea of how the parent company really makes its money.