McDonald’s Doesn’t Sell Burgers - Wait, What?

 We all know McDonald’s as the uncrowned king of fast food.

Their legendary Crunchy Mac’n’Cheese Burgers have even made it to the South Pole (probably in someone’s backpack).

But here’s the thing - McDonald’s isn’t just flipping burgers. In fact, burgers aren’t even their main source of income.

The Real Story Behind the Golden Arches

When we think of McDonald’s, we imagine sizzling patties, crispy fries, and a line that moves faster than our Monday motivation.

But behind the smell of freshly fried nuggets lies one of the smartest business models in the world.

Here’s the twist: McDonald’s is actually a real estate company disguised as a fast food joint.

Yep, you read that right.

Their true wealth doesn’t come from selling meals - it comes from the land beneath their restaurants.

How McDonald’s Built a Real Estate Empire

Most people don’t realize that McDonald’s doesn’t own around 90% of its restaurants. Those shiny outlets you see on every corner?

They’re owned by individual franchisees - local business owners who buy the rights to operate under the McDonald’s brand.

But here’s where it gets interesting.

McDonald’s owns the land and leases it to these franchisees. So, every time a Big Mac gets sold, McDonald’s earns not just a slice of the profit - but also steady rent from the property.

It’s like being a landlord for thousands of restaurants around the world. A landlord with fries.

The Genius of the McDonald’s Model

By owning the land, McDonald’s secures long-term, predictable income - regardless of how many burgers are sold. 

Meanwhile, the franchise owners handle daily operations, staffing, and customer service.

This model gives McDonald’s a double win:

• Franchise fees and royalties from sales.

• Rental income from their real estate.

Even better, the profit margins from these franchise arrangements often exceed the profits from company-owned locations.

In short - they make more money when others run their restaurants.

The Takeaway: Think Beyond the Product

McDonald’s might be famous for its burgers, but its empire is built on land, strategy, and vision.
It’s a powerful reminder that sometimes, the real business isn’t what meets the eye.

So, next time you bite into a Big Mac, remember - you’re not just eating a burger; you’re looking at one of the smartest real estate strategies in modern business.

Just a burger for thought for your next investment.

Until next time,
Jason Striker