1851

Consumers think of <a href="https://www.mcdonalds.com/us/en-us/about-us/franchising/franchising-faq.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-is-mcdonalds-considered-a-real-estate-company-2715077" target="_blank" rel="nofollow">McDonald’s</a> as a burger restaurant, but in the business world, McDonald’s is considered a real estate company.&nbsp;While the brand has sold more than one billion hamburgers to customers around the world, 85% of its stores are owned by franchisees. Franchisees pay to use McDonald’s brand name, its proprietary processes and trademarked menu items, but unlike other franchises, McDonald’s owns the land the stores are built on.&nbsp;Between the burgers and the land, McDonald’s makes a lot more of its money on the land.&nbsp;McDonald’s owns thousands of iconic pieces of real estate around the globe. From New York City’s Times Square to Moscow’s Red Square, McDonald’s has ventured around the world, buying up prime real estate. Franchisees pay McDonald’s a cut of their food sales, but a much larger portion of McDonald’s revenue comes from the rent it’s paid on its real estate. After all, rent in Times Square isn’t cheap, but a Big Mac is.&nbsp;McDonald’s still takes a royalty on its franchisee’s sales but enjoys a much fatter revenue stream from the leases on nearly 33,000 franchisee-owned restaurants.“The Founder,” a 2016 film about McDonald’s history <a href="https://www.youtube.com/watch?v=uxCL2RqCuiY&utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-is-mcdonalds-considered-a-real-estate-company-2715077" target="_blank" rel="nofollow">explains the dynamic succinctly</a>: “You don’t build an empire off a 1.4% cut of a 15 cent hamburger, you build it by owning the land on which that burger is cooked.”<figure class="media"><oembed url="https://www.youtube.com/watch?v=uxCL2RqCuiY"></oembed></figure>

Why is McDonald's Considered a Real Estate Company?

1851 Franchise

The golden arches are synonymous with burgers and fries, but business people find something meatier to sink their teeth into when looking at McDonald’s ledger: the real estate.

why-is-mcdonalds-considered-a-real-estate-company

Sylvan Learning

Sylvan Learning - Empowering Women in Education - Susan Valverde - Denise Tompkins - Jessica Rollins

Empowering Women in Education: How Sylvan Learning’s Female Leaders Are Making an Impact

sylvan-learning-empowering-women-in-education

Shuckin' Shack

Photo of Shuckin' Shack team gathered in a room for the brand's State of the Union

Shuckin' Shack Oyster Bar Franchise Partners Unite for Annual Conference Focused on Innovation, Growth, and Giving Back

shuckin-shack-franchisees-unite-for-annual-conference

Integrity Franchise Group

Why Attending Franchise Conferences is Crucial for Your Business Success

why-attending-franchise-conferences-is-crucial-for-your-business-success

Pool Scouts

Women Entrepreneurs Thriving With Pool Scouts: Celebrating Women’s History Month

women-entrepreneurs-thriving-with-pool-scouts-celebrating-womens-history-month

Dog Training Elite

Dog Training Elite - Chris Bergman - Dog Training Tips - National Dog Training Education Month

2News Nevada: Dog Training Expert Provides Tips for National Dog Training Education Month

dog-training-elite-chris-bergman-expert-tips

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

Login

facebook

instagram

twitter

linkedin

youtube

NRA: Restaurants Focus On Enhancing In-Store Experiences To Attract Diners in 2025

nra-restaurants-focus-on-enhancing-in-store-experiences-to-attract-diners-in-2025

The Joint Chiropractic - Dr. Anthony Tran - IFA Franchisee of the Year - 1851 Franchise

The Joint Chiropractic’s Dr. Anthony Tran Named Franchisee of the Year by the IFA

joint-chiropractic-dr-anthony-tran-ifa

TruGolf - Hybrid Golf Franchise - Nexus Golf - 1851 Franchise

TruGolf Links Unveils Revolutionary Hybrid Golf Franchise Concept

trugolf-links-unveils-revolutionary-hybrid-golf-franchise-concept

Photo of a basket of chicken wings with dipping sauce and celery

RestaurantNews: Franchisees File Comprehensive Legal Complaint Against Hurricane AMT

restaurantnews-franchisees-file-comprehensive-legal-complaint-against-hurricane-amt

Hooters - Bankruptcy Chapter 11 - 1851 Franchise

Hooters Prepares for Bankruptcy Amid Financial Struggles

hooters-prepares-for-bankruptcy-amid-financial-struggles

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

DOJ FTC Antitrust Guidelines - Franchise News - 1851 Franchise

DOJ and FTC Issue New Antitrust Guidelines with Implications for Franchising

doj-and-ftc-issue-new-antitrust-guidelines-with-implications-for-franchising

Taco Bell Joins the Beverage Boom With New Live Más Café Concept

taco-bell-joins-the-beverage-boom-with-new-live-mas-cafe-concept

Domonique Downing - Big Frog Franchise - Fayetteville, GA - 1851 Franchise

Coca-Cola Scientist Finds Path to Autonomy with Big Frog Franchise in Fayetteville, Georgia

big-frog-franchise-fayetteville-georgia

Franchisee spotlight featuring Ian and Dick Rydholm with gradient blue background and Sylvan logo

Ian and Dick Rydholm Celebrate 30 Years of Transforming Lives Through Sylvan Learning in El Paso, Texas

ian-and-dick-rydholm-celebrate-30-years-of-transforming-lives-through-sylvan

Florida Franchisee Reflects on Success and Growth with Sylvan Learning

florida-franchisee-reflects-on-success-and-growth-with-sylvan-learning

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Why is McDonald's Considered a Real Estate Company?

MORE STORIES LIKE THIS