McDonald’s: The Fee Hike Is Evidence Of Something Bigger

Summary:

  • McDonald’s management team announces a 25% hike in royalties from franchisees, but it will only apply to new locations in the US and Canada.
  • The increase in royalties is part of McDonald’s long-term strategy to create additional value for shareholders.
  • The company is focusing on digital initiatives, delivery services, and automated stores to stay ahead in the competitive fast-food industry.

McDonald"s Faces Widespread Accusations Of Bullying And Sexual Misconduct In UK Restaurants

Jeff J Mitchell/Getty Images News

On September 22nd, the management team at McDonald’s (NYSE:MCD) made a surprise announcement that, for the first time in 30 years, McDonald’s will raise its royalty fees. The hike from 4% royalties to 5% might sound fantastic


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.

Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discussion of the sector.

Sign up today for your two-week free trial and get a new lease on oil & gas!

Leave a Reply

Your email address will not be published. Required fields are marked *