Tuesday July 9, 2019, 00:00:00
MCD 2019 Franchise Disclosure Document Review for McDonald’s
Not too long ago, McDonald’s (MCD; Buy) filed its 400+ page Franchise Disclosure Document (FDD) for 2019. In this report, we cite some of the highlights from that document following our review of it, including our review of it in comparison to last year’s Franchise Disclosure Document. For example, for the 11,761 domestic traditional McDonald’s restaurants that were open for at least one year as of December 31, 2018, their median sales volume was $2,764,000 during 2018, with approximately 58% of them attaining sales in excess of $2,600,000. This compares with the 12,169 domestic traditional McDonald’s restaurants that were open for at least one year as of December 31, 2017, and their median sales volume of $2,703,000 during 2017, with approximately 55% of them attaining sales in excess of $2,600,000. In addition, as of 12/31/18, McDonald’s anticipated opening about 50 new restaurants in the U.S. during 2019 (nearly all of them franchised), but closing approximately 105 restaurants in the U.S. during 2019. This anticipated net change of about -55 for 2019 compares with actual net changes of -117 for 2018, -124 for 2017, -98 for 2016, and -93 for 2015.
