November 17, 2010

More on McDonald's Rebuilds

Every body's talking about McDonald's rebuilds but nobody
wants to do anything about it. I've spoken with Operators
who might spend $2 million on a rebuild - somebody explain
to me how this works. Before the cost of money that's $100K
per year over the life of that individual franchise. Add to
that another $100K a year in a) constant remodeling,
b) constant technology upgrades, c) constant new product
introductions.

And at the end of the twenty years have nothing to sell
because the McDonald's building needs to be rebuilt again?

.

2 comments:

Anonymous said...

If the site is owned by McDonald's Corp. you are at least spending your equity to improve the assets of McDonald's Corp. If the site is owned by their non-public real estate entity (System Capital Corp.) you are spending your equity to improve the portfolio of vendors and McDonald's executives, past and present.

Anonymous said...

On the end of the day, the only factor that counts is your taste.
Should you like it - the again facet is absolutely
of no consequence.