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McDonald's is a (Valuable) Real Estate Company

 Apr 23, 2008 05:15 PM UTC
Symbol Sentiment Start Return Closed
MCD Positive 04/23/08 +4.79% --

4/23 - "McDonald's(MCD) is not a burger-flipping restaurant chain; it is one of the world's best real estate portfolios. Franchisees flip the burgers. McDonald's simply owns the best commercial property all over the world."

"First, it buys and sells properties, as one might suspect. Often these are restaurant lots, but such is not necessarily always the case. McDonald's will buy properties that it feels are , or will be, hot locations, and it of course sells properties that are under performing or otherwise not doing so well...Secondly, on top of the franchise fee ( usually 8% ) which McDonald's charges its franchisees to use the " McDonald's " name, it charges rent to the franchisees to use the corporately-owned properties."

"One of these days some large fund or investor will buy up shares of these golden arches for the purpose of spinning off its real estate division. This stock will go tremendously higher."

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loneranger   38%     0 point   commented 592 days ago reply

If you ever heard Ray Crock speak about his burger chain the fact that it is a real estate company first is one of the key things he would mention. With real estate as it is though I dont know how much that helps
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thebigkill   66%     1 point   commented 591 days ago reply

The golden arches will connect the hemispheres. MCD is a great Americhina play.

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