The Real Estate Empire Behind the Golden Arches

In fact, in 2024 alone, McDonald’s made over $7.3 billion from one not-so-obvious line item:

Real estate.

That’s right—McDonald’s isn’t just in the burger business. It’s in the landlord business. And it’s crushing it.

Let’s take a closer look at how real estate became McDonald’s golden goose—and how this same strategy can be a game-changer for everyday investors.

McDonald’s owns just 5% of its restaurants, yet those company-operated locations generate 38% of the company’s revenue—but only 12.6% of its operating profit. The real magic isn’t in the restaurants themselves or their famously efficient fast food systems—it’s in what’s under those franchised locations. These aren’t just fast food outposts—they’re income-producing assets.

By owning the land under nearly 40,000 locations around the world, McDonald’s collects rent from franchise operators and royalties from their sales. That means consistent, high-margin, largely passive income—and a business model that keeps cash flowing even when burger sales might fluctuate.

But the benefits of owning the land go beyond just revenue. It also gives McDonald’s control—control over where stores are located, who runs them, and whether they’re upholding brand standards. If a franchise underperforms, McDonald’s can make changes without having to negotiate with a landlord. That kind of power is rare—and it comes from one thing: ownership.

And then there’s the stability factor. Fast food is a tough industry, with tight margins and constant pressure from inflation, labor costs, and changing tastes. But real estate? It appreciates over time, especially in high-traffic, desirable areas. With over $42 billion in commercial real estate on its books, McDonald’s has created a powerful buffer against market volatility.

I’ve always believed that real estate is more than just a transaction—it’s a way to create stability, options, and even legacy. That belief is what drew me into this industry in the first place. It’s not about chasing flashy returns, but about building something that lasts.

These principles aren’t just for multinational corporations. I’ve seen them play out in real life. Stories like this are why I love what I do—because it’s not just about ROI. It’s about helping people create something sustainable for themselves, their families, and their communities. When we invest wisely, we uplift neighborhoods and create opportunities for the next generation.

One of my investor clients recently purchased a duplex under market value. I negotiated the deal at $302 per square foot, significantly below the average of $456 per square foot in Oakland (94605). With a smart renovation and the right permits, he converted the existing 5-bedroom duplex into a 6-bedroom triplex. That property now brings in approximately $2,800 in net cash flow each month—more than covering the mortgage and generating reliable income in Oakland's competitive rental market. He’s not flipping burgers either… he’s building long-term wealth through strategic real estate ownership.

The lesson here is simple: You don’t need to operate a fast food empire to benefit from the fundamentals that make McDonald’s so successful. You just need to start with one well-chosen property, and a strategy that prioritizes ownership, leverage, and long-term growth.

The McDonald’s Principle: Own the Land, Not Just the Brand

McDonald’s didn’t become a global powerhouse by selling the best burgers—it did it by owning the land beneath them. This strategy, often referred to as “The McDonald’s Principle,” is simple but powerful: long-term wealth favors the owner, not just the operator.

Whether it’s a global franchise or a neighborhood duplex, the real financial engine is the land. McDonald’s has proven this by building a portfolio worth over $42 billion in real estate, allowing it to collect rent and royalties while minimizing operational headaches.

Source: "McDonald's: The Real Estate Empire Behind the Golden Arches," CNBC Make It; McDonald’s Corporation Annual Report 2023.

The takeaway? You don’t need to run a restaurant chain to apply this principle. Start with one smart purchase, and build from the ground up—literally.

Investor Takeaways:

• Income-producing property = efficient wealth builder

• Ownership = power + flexibility

• Real estate can balance your portfolio like a Fortune 500 company

• You can start with one smart purchase

Let’s Make a Plan for You

No matter where you are in your journey—whether you're saving for your first property or exploring what to do with your current one—I’m here to support you. I truly believe that with the right strategy, anyone can build a future they’re proud of through real estate.

Thanks for being here and for investing the time to learn something new today. Your future self will thank you for it.

McDonald’s didn’t just win with burgers. It won by owning the land beneath them.

And while you may not have a global franchise, you do have the power to take the next smart step with your money.

Whether you're buying your first home, investing in a rental, or planning your next move, remember:

It’s not just about what’s built on the land. It’s about who owns the land.

P.S. The only question left: Team McNuggets or Big Mac? Either way, the fries don’t pay the bills—the land does.