How McDonald's REALLY Makes Money (Not from Hamburgers!)
İbrahim Balsak İbrahim Balsak
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 Published On Nov 18, 2023

#mcdonalds #hamburger #real estate #money #strategy #brand #company #balsak

How Does McDonald's REALLY Make Money? (Not from Hamburgers!)

What comes to your mind when McDonald's is mentioned? Let me guess. Hamburger? Well, what else would happen? This is very normal, because do you know how many hamburgers McDonald's, the world's most famous fast food chain, sells per second? 75 grains. Yes, 75 for every second. Calculate how many hamburgers have been sold since you started the video. McDonald's, which has more than 42 thousand restaurants in more than 120 countries and is quite rich, generates its income from the sale of hamburgers, fries and cold drinks. I wonder?

Where do you go when you want to eat a burger? Burger King or a local burger place? Research shows that the main choice for hamburgers around the world is McDonald's. It is debatable whether it is the best burger, but it is by far the biggest. McDonald's is so big that it has the title of the most well-known real brand in the world after Coca Cola. Its famous arch-shaped yellow and red logo is even more recognizable than the Holy Pilgrimage sign. How many hamburgers do you think have been sold since the first McDonald's restaurant opened in 1940? 300 billion pieces! This is almost 40 times the current world population. McDonald's is a huge chain that serves 69 million customers a day. There is no institution or organization in the world that purchases more meat than McDonald's. This company is actually much bigger than you think. So much so that a McDonald's restaurant opens every 14 hours in the world. Train stations, airports, office buildings, university campuses. McDonald's is the second largest private employer in the world, able to provide the same uniform to 2 million people in more than 42,000 branches. It is estimated that 1 in 8 employees in America has worked at McDonald's at some point in their life. This includes Jeff Bezos. Yes, Jeff Bezos, the owner of Amazon and the 3rd richest person in the world, was frying hamburgers at McDonald's when he was 17 years old. So what is the most famous hamburger? This is such a popular product that it has even appeared in movies and the hamburger even has its own museum.

Vegetarians may not like this video, but every day, millions of people choose one of McDonald's menus and devour their burgers with fries. And everyone probably thinks that McDonald's is just a hamburger place. Well, what would you say if I told you that McDonald's does not make its real money from hamburgers? Yes, McDonald's does not make its real money from hamburgers. Although McDonald's is known only as a fast food chain company, it is actually a large real estate company. Yes, McDonald's is actually a real estate company. Almost all of its restaurants belong to McDonald's itself. And McDonald's makes most of its revenue from rents, not burgers. So the Happy Meal menu you buy is expanding real estate development, not McDonald's fast food chain. The company's annual reports also support this situation. The company's income basket is collected under three main headings. Franchise system, real estate and supplier. At this point, McDonald's has created a system that other fast-food giants have copied exactly. First he buys the place, then he rents it to the person who wants to buy a franchise. He earns both from rent and from brand rights. Not to mention, over time, the value of the store he bought it from increased. Moreover, everything in the store, down to the straws, is sold by McDonald's to the branch operator. There's no place like McDonald's. Really not. Perhaps the only one of its kind.

Many people think that the company's money comes from sales. However, this is a big mistake. So how much money are we talking about? McDonald's is the world's most valuable fast food brand with a value of $180 billion. By comparison, Starbucks is worth $80 billion and Burger King is worth $23 billion. The company owns approximately $60 billion worth of real estate worldwide. The company is the 5th largest real estate owner in the world. It has real estate in the world's most expensive and luxurious locations, from Times Square in New York to Red Square in Moscow. So how does this strategy work? A large portion of McDonald's, which employs almost 2 million people worldwide, comes from its franchise business model. McDonald's purchases properties where restaurants are located and leases these properties to franchisees. Worldwide, this system has taken McDonald's beyond being a giant fast-food chain and turned it into a global real estate company.

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