By Mark Kalinowski
Published on July 15, 2019 at 12:00 AM
Not too long ago, the Taco Bell concept owned by Yum Brands (YUM; Buy) filed its 500+ 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, based on data provided, our best guess is that during 2018 U.S. companyowned traditional Taco Bells generated average sales of $1,810,474 and median sales of $1,578,925. And, our best guess is that during 2018, U.S. (single-brand) franchised traditional Taco Bells generated average sales of $1,572,481 and median sales of $1,513,671. We maintain our Buy rating on YUM and note the following:
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By Mark Kalinowski
Published on July 9, 2019 at 12:00 AM
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.
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By Mark Kalinowski
Published on June 25, 2019 at 12:00 AM
Not too long ago, IHOP (owned and franchised by Dine Brands [DIN; Buy]) filed its 500+ 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, the footnote to the National Advertising Fee — currently 3.5% of total Gross Sales — indicates that “Commencing on January 1, 2023, the National Advertising Fee will be the greater of: (i) 2.25% of total Gross Sales or (ii) the National Advertising Fee set forth in at least 88% of IHOP franchise agreements, as amended, in effect as of January 1, 2023 (“2023 Franchise Agreements”). Commencing on January 1, 2023, the Local Advertising Fee will be (i) .75% of total Gross Sales or (ii) if the National Advertising Fee is at least 3.5%, the Local Advertising Fee set forth in at least 88% of the 2023 Franchise Agreements. These fees will be electronically debited from your account if we request that you participate in our electronic funds transfer program authorizing us to receive payments from you by pre-authorized bank draft, wire transfer, automated clearinghouse transfer or otherwise.” The 2019 FDD indicates that “There is currently no required local advertising fee.” We maintain our Buy rating on DIN and note the following:
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