McDonald’s: Real Estate & the Illusion of Value

So, McDonald’s. Everyone thinks it’s about the burgers. The McNuggets. The… whatever those breakfast things are. It’s not. It’s about land. Prime real estate. Which, honestly, is just… infuriating. They’re not a restaurant company; they’re a property company disguised as a restaurant. It’s a shell game, I tell you. A shell game! And everyone just… accepts it.

Ninety-five percent of the stores are franchises, which sounds… fair. But they own eighty percent of the buildings, fifty-six percent of the land. It’s like… you rent an apartment, but the landlord also owns the entire parking lot, the landscaping, and is subtly judging your life choices. It’s just… a power imbalance. And they’re collecting rent, of course. Rent! On top of everything else. It’s a beautifully cynical system. They’re making money while other people are actually working.

Yum! Brands, Restaurant Brands International… they’re all just… renting. They don’t own the ground they’re standing on. It’s a fundamental difference. It’s like… building a house on someone else’s property and being surprised when they ask for… well, you know. It’s basic logic, people!

Real Estate and the Golden Arches (Seriously, the Arches…)

Okay, so they own property internationally. Big deal. Everyone owns property internationally. It’s not like they’ve discovered a new continent. Apparently, half the value is in places like the U.K., France, and Germany. So, they’re profiting off other people’s countries now? It’s just… layers of… something. It’s enough to make you question everything.

They generate ten billion in revenue, seven-and-a-half in rental income. And they use these “triple net leases.” What does that even mean? It means the franchisees are paying for everything. Taxes, insurance, maintenance. Everything. It’s brilliant, really. Pure, unadulterated… efficiency. They’re essentially being paid to let someone else run a business. And people call me cynical.

Macquarie Asset Management says it’s worth one hundred and twenty billion. The balance sheet says twenty-seven-and-a-half. It’s like… they’re hiding the money. Or… depreciating it. Or… something. It’s just… numbers. Meaningless, manipulated numbers. They’ve been holding this property for decades. Decades! It’s probably falling apart. But they’re still pretending it’s worth something.

Defensive Cash Flow in a Changing Environment (As if Anything is Truly “Defensive”)

They’re at all-time highs. Of course. Because people are easily distracted by… value meals. Extra Value Meals. As if a slightly cheaper burger is going to solve all your problems. Sixth-point-eight percent growth in the U.S. market. Over two years. It’s a blip. A statistical anomaly. They’re relaunching old menu items. It’s like… admitting they had nothing new to offer in the first place.

Lower-income households are under pressure? No kidding. They’ve been under pressure for years. And now McDonald’s is going to… save them with a discounted Filet-O-Fish? It’s insulting, frankly. They generated seven-point-two billion in free cash flow. For what? To buy back shares? To inflate the stock price? It’s all just… a game. A rigged game.

Forty-nine consecutive years of dividend increases. They’re going for fifty. A “Dividend King.” It’s just… a title. A meaningless label. They’re rewarding shareholders while the world is… you know. It’s just… tone-deaf. At twenty-four times forward earnings, it’s… fine. It’s perfectly… acceptable. Considering they own half the planet.

2026-02-21 10:13

Real Estate and the Golden Arches (Seriously, the Arches…)

Defensive Cash Flow in a Changing Environment (As if Anything is Truly “Defensive”)

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