How Efficient is McDonald’s Business?
In making our video to announce the launch of our new data platform, we noticed that McDonald’s has a very high sales per restaurant.
Take a look at this graph:
One of two things is happening here: either McDonald’s is running its restaurants with incredible efficiency, or the company has found the proper balance of geographic saturation (that is to say, in general McDonald’s franchises are not taking business away from other McDonald’s franchises, a la Starbucks and Subway). In either (or both) case, this bodes well for the company.
Look for the stock price to rise along with earnings.
More on this topic
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Be careful what you wish for, Mr. Balsillie
(Canadian Business Blog, 6/23/09)
Five Factors to Consider Before Buying into a Franchise Opportunity
(Saving to Invest, 8/12/09)
Ohio Attorney General Objects To GM Sale: "Franchise Contract Changes Are Unlawful"
(Zero Hedge, 6/22/09)
Third time a charm for Balsillie?
(Canadian Business Blog, 5/6/09)
