Mcdonalds 10K

Company-operated margins
In millions
our ownership structure, we do not specifically portion 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 following information just about Company-operated restaurants in our most significant markets provides an additional perspective 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 following get across seeks to illustrate the two components of our Company-operated margins. The first of these relates exclusively to restaurant operations, which we appoint to as Store operating margin. The second 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 Brand/real estate margin.



Both Company- operated and conventional franchised restaurants are charged crosscurrent and royalties, although rent and royalties for Company-operated restaurants are eliminated in consolidation. Rent and royalties for both restaurant ownership types are based on a percentage of sales, and the veridical rent percentage varies depending on the level of McDonalds coronation in the restaurant. Royalty rates may 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 leased sites and depreciation for buildings...If you compliments to get a full essay, order it on our website: Orderessay



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