June 5, 2010

Secretive Companies

It's always frustrating when I'm asked about one of the
McDonald's vendors and can't provide information beucase
most of these vendors are privately held and have no
disclosure or transparency requirements.

So it's rewarding when a McDonald's executive admits that
vendors such as SEI and VSI are subsidiaries of McDonald's.
I'm told I should refer MCD O/Os to Jim Sappington's e-mail
of May 18, 2010 in which he discusses McDonald's technology



Anonymous said...

Now we know how Corp is raising the co-payment money for the Technology Improvement contribution! They take it out of the McD pocket, pay it to SEI, and SEI puts it back in McDs pocket. All with the big middleman markup. Its a win-win for everybody except the OPERATOR !!

Anyone who thinks this is not happening in Real Estate too is dreaming. Can you say "systems capital corp" ?

Richard Adams said...

In my opinion this is also how MCD Corp paid for a portion of the McCafe remodel through the relationship with Bovis.

Richard Adams said...

But that's not quite how I think
it works with System Capital.

It's true that Operators pay
the freight because rents
increased about the time
SCC/Golden Mac came along
in the early 1990s.

The under the table part of
SCC is the arrangement to
strip the unrealized real
estate equity out of the
system for the benefit
of the owners of SCC and
MCD executives, past and

Meanwhile, the urban myth
continues that investors can
take comfort that MCD Corp
owns a lot of real estate.
Do they?

Some regard MCD Corp as a REIT, it"s not.

SCC is the REIT.

That's the beauty of setting
up these private companies
that are supposedly arms
length (and non-transparent).

Strange how many of these
entities are based in
Oak Brook, IL.