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Siddharth K Nair

Thatmoonemojiguy 🌝 • 2m

Selling Cheap, Earning Big: McDonald’s Secret Formula for a $200 Billion Fortune At first glance, McDonald’s seems like a fast-food chain selling ₹40 burgers at razor-thin margins. But behind the counter lies a far smarter play that built a $200 billion+ global empire. The real secret? Selling cheap, but earning big through real estate and franchising McDonald’s owns prime real estate worldwide and leases it to franchisees, earning steady, often above-market rent. In addition, franchisees pay royalties (around 4–5% of sales) for using the McDonald’s brand and systems. This means McDonald’s earns whether or not a burger is sold The low-cost food? It’s just the entry point. High-margin items like fries, drinks, and combos generate real profit. With over 90% of stores franchised, McDonald’s avoids most operational headaches while enjoying consistent, scalable income It’s not just about selling burgers—it’s about owning the land, renting the brand and mastering the math of volume 🌝👑

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McDonald’s isn’t a fast food chain… It’s a real estate empire that has made billions on the land it owns and the rental income it earns from franchisees. Rental income alone accounts for 40% of its annual revenue!

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