Mcdonalds 10K

Company-operated margins In millions our ownership structure, we do not specifically circumstances selling, general & administrative expenses and other operating (income) expenses to Company-operated or franchised eating places. other(a) operating items that relate to the Company-operated restaurants generally include gains/losses on sales of restaurant businesses and write-offs of equipment and leasehold improvements. We believe the pursual information provided about Company-operated restaurants in our most significant markets provides an additional persuasion on this business. Management responsible for our Company-operated restaurants in these markets analyzes the Company-operated business on this can to assess its performance. Management of the Company also considers this information when evaluating restaurant ownership mix, subject to other relevant considerations. The succeeding(a) get across seeks to illustrate the two components of our Company-operated margin s. The first of these relates but to restaurant operations, which we appoint to as Store operating margin. The south relates to the value of our trade name and the corporeal terra firma interest we retain for which we charge consider and royalties. We refer to this component as tick/real estate margin.

Both Company- operated and conventional franchised restaurants are aerated crosscur choose and royalties, although rent and royalties for Company-operated restaurants are eliminated in consolidation. Rent and royalties for some(prenominal) restaurant ownership types are based on a percentage of sales, and th e veridical rent percentage varies dependin! g on the direct of McDonalds coronation in the restaurant. Royalty rates whitethorn also straggle by market. As shown in the following table, in disaggregating the components of our Company-operated margins, veritable costs with respect to Company-operated restaurants are reflected in Brand/real estate margin. Those costs consist of rent payable by McDonalds to third parties on lease sites and depreciation for buildings...If you compliments to get a full essay, come in it on our website: OrderCustomPaper.com

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