I would suggest that MCD corp regularly turfs out established O/O's, just for the opportunity to re-sign lease agreements for better rent %s. ie renegotiating from 90's rates around 5% to 2010's rates at 10% of gross.
IMO, MCD has been administratively leveraging there negotiation position with regards to rental %s as the near sole driver of profit increases for about 18-22 years. They are very very near max sustainable extraction, which is evident by their huge offloads of corporate owned stores in the last 3 years.
Addition: They could also be positioning for a REIT transition.
IMO, MCD has been administratively leveraging there negotiation position with regards to rental %s as the near sole driver of profit increases for about 18-22 years. They are very very near max sustainable extraction, which is evident by their huge offloads of corporate owned stores in the last 3 years.
Addition: They could also be positioning for a REIT transition.