A friend also pointed out some interesting numbers in a recent Seeking Alpha analyst's report. Now, these McDonald’s corporate numbers are no secret. They’re in the quarterly and annual reports that we should all be tracking (shame on us). But this analyst breaks them out concisely:
“Over the past three years, the firm has seen its profit margins associated with its US franchised operations climb from 10.75% to 11.64%. A small portion of this increase came from actual franchise revenue. But the lion's share was driven by higher rents that the company was able to extract from its partners. Owners of franchised restaurants went from paying $6.84 billion in rents to the company in 2020 to $9.05 billion last year. In the U.S. market, this was responsible for pushing total franchise revenue that the company collected from $5.26 billion to $6.59 billion, with the take relative to total franchised systems revenue growing from 13.80% to 14.35%.
Seeking Alpha report > McDonald's: The fee hike is evidence of something bigger