McDonalds is a fast food giant that has been around for years. Their stores can be found all across the globe which generate some serious cash every year. But how much money does McDonalds make a day? In this blog post, we will take a look at the company’s revenue and profit margins to see just how much cash it brings in each day.
A quick look at the company’s finances will show that McDonalds makes around 58 million dollars every single day. McDonalds is a publicly traded company so their financials are available to the public. In 2018, the company had a revenue of $21.03 billion dollars. Their net income was $68 million dollars which means they made a profit of $0.32 cents per share. This means that McDonalds brings in about $58 million dollars a day. However, this is just an estimate as the company’s financials can fluctuate from year to year. But it’s safe to say that McDonalds makes a ton of money each day!.
How Much Does McDonalds Make Annually?
According to Statisca, In 2021, McDonald’s generated a total revenue of 23.22 billion U.S dollars. Also in that same year, when looking at their financials by region, it was revealed that the country which accounted for 871 million USD was the United States. Making Americans the biggest consumers of McDonalds products.
How Much Does A McDonalds Restaurant Make A Day?
Right now in the United States Mcdonalds has about 14,000 store locations. These restaurants vary in the amount of customers they receive due to location and advertising within that area. However, generally a single Mcdonalds store will make about $7,000 a day on average.
How Much Does A McDonalds Restaurant Make A Year?
As we previously mentioned, a McDonalds restaurant makes about $7000 a day in revenue. So with a little math we can calculate that on average a McDonalds restaurant makes about $2.5 Million annually! With impressive numbers like these, It’s no wonder why so many people strive to be owners within the franchise. However, please keep in mind that these are averages. Some store make more and some make less.
How Does McDonalds Make Money?
Most of its profit is from real estate. The company charges franchisees a fixed base rent based on how much it spent on the land and how much it pays out in mortgage payments every month. They also pay out a royalty on the sale of food. Hence, it’s easy to see why McDonald’s has become one of the most profitable franchises in the world.
Lets take a bigger look into exactly how Mcdonalds makes their money
McDonald’s Makes Most Of It’s Profit Through Real Estate
While most people associate McDonald’s with fast-food, that company is not a fast-food franchiser. They make most of their profit through real estate. In addition to buying and leasing hot properties, the company collects rents at franchised locations. With over 36,000 restaurants worldwide, McDonald’s has a real estate division that makes up a significant portion of their business. While only 15% of those restaurants are owned directly by the McDonald’s corporation, that number is expected to rise.
McDonalds Charges Fixed Base Rent Based On How Much They Paid to Acquire The Land
In addition to the fixed base rent, McDonalds charges a service fee of 4% on each sale. It is a fact that franchisors pay a lot of money to run a McDonald’s. However, McDonald’s does not cut corners. In fact, franchisees pay a monthly lease of 10.7% of their total sales and must abide by the regulations. Unlike some corporations, McDonald’s doesn’t cut corners in order to increase profits.
McDonalds Pays Franchisees A Royalty On Food Sales
Franchises pay a percentage of food sales as royalties. Typically, the royalty fee is between 4% and 11% of gross sales. However, if you want to make more money, you can choose to purchase a McDonald’s business. You can choose to pay your franchise fees in monthly installments or in full. However, you should be aware that some franchises do not allow franchisees to operate a business until they have reached the threshold of four to five years.
It’s no surprise that McDonalds makes a lot of money each day. Their massive global reach and years of experience have made them one of the most successful fast food chains in the world. If you’re ever feeling hungry, be sure to swing by your local McDonalds and grab something to eat!
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