Financial Education #49: McDonald's Is Not On The Hamburger Business
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McDonalds have the best service of a low priced and fast served hamburger. However, Ray Kroc the founder suggests that they are in the real estate business, not the hamburger business.
McDonalds will purchase the land and build the store, then the franchisee will come along and purchase that off of them. McDonalds will then receive monthly cash flow for leasing out the land. They own some of the most prime real estate in the world .
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