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by JD_MRT 2389 days ago
I looked at 2018's annual report. Net income divided by total revenues. Google should that show that in a quick search.
1 comments

That's the parent company's financial figures, which include profits from franchisee's. This inflates their earnings. A typical store (franchisee or McOpCo) clears about 10% net of their sales. For a McOpCo store (one owned directly by McDonalds), this is not bad at all, since they don't have to pay a franchise fee. This means they're clearing 5-8% more. But for a franchisee, they pay a franchise fee of around that amount. So take home is not as extravagant. 90% of McDonalds are franchised, so the parent company's earnings are largely composed of franchise fees, not sales margins.