The Success Of The Mcdonalds Brothers Essay

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Company Overview The Mcdonalds brothers opened their first restaurant in San Bernardino, California, in 1940 but it wasn 't until 1948 did they turn their focus to selling hamburgers and fries. The first Mcdonald 's franchise was opened in Phoenix, in 1953. In 1955, a man by the name of Ray Kroc joined the company as a franchising agent, Ray then bought the Mcdonald 's chain from the brothers (History Of Mcdonalds). Today Mcdonald 's operates in 118 countries and has over 36,000 facilities with 30,000 of these locations being franchises. “McDonald 's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants.” (McDonald 's) Even with multiple revenue streams the company earns a significant portion of it from rental payments from franchisees. “These rent payments have risen 26 percent over the past five years, and currently account for one fifth of the company 's total revenue.” (McDonald 's) Moreover, unlike some other franchises Mcdonald’s “currently owns all of its property – valued at an estimated $16 to $18 billion.” (LUBLIN, JOANN S) There are famous quotes by Ray Kroc saying “We are in the real estate business, not the hamburger business.” and “The real estate wasn’t ever going to come down in price – no way!”. With this type of business model it is important for to Mcdonald’s to have the best locations in cities and towns so that their franchisees are able to make the most money from the sale of food and

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