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McDonald’s Margins

A stock research company called Trefis who is blogging at Forbes.com noted that McDonald’s company owned stores had a combined EBITDA margin of 24%, while franchised stores provide McDonald’s corporate with an 88% EBITDA margin.  Trefis doesn’t detail how they sourced information to arrive at these margin calculations, but there point was McDonald’s earns 4x as much by franchising a store rather than owning it directly.

McDonald’s owns about 6,200 (20%) of its 30,000 restaurants.

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About Ryan Knoll

Attorney and advisor with an interest in franchising. Feel free to email me comments and questions on the "Contact Us" page.

One comment

  1. Talk about some margins in the franchising world. Wow! I am also shocked that McDonald’s makes more money on franchised stores. I wonder if this is because of the franchisees initial investment in not only the brand but also developing a new location.

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