Why invest in McDonald's Corporation?

   McDonald’s Corporation (or the Company), ticker symbol:  MCD (NYSE), mainly manages and franchises McDonald’s restaurants in the food service and fast food industry. McDonald’s food chain stores serve a wide-ranging but limited, value-priced list of options in more than hundred countries worldwide.  All McDonald’s restaurants are operated either by the Corporation, by independent investors, businesses and franchisees (under the tenure of franchise arrangements), or by partners and developmental licensees operating under contracts. Under the franchise agreement, franchisees or store owners not only provide the required funds by initially investing in the equipment or facilities (e.g., kitchen equipment or wares, signs, tables and seats) and interior decoration of their restaurants, and also by reinvesting in the enterprise and the store over time. The Corporation mostly contributes to the original investment by owning the real estate, land, construction and store or getting hold of long-term leases for restaurant sites. Franchisees and investors “contribute to the Company’s revenue stream through the payment of rent and royalties based upon a percent of sales, with specified minimum rent payments, along with initial fees. The conventional franchise arrangement typically lasts 20 years and franchising practices are generally consistent throughout the world” (MC10-K, 2009, p.3). By owning or securing lasting leases and then getting fair rental returns from store owners are the most rewards and most important parts in its operations that providing stable revenues and excellent income to support  its costly franchising operations management (especially very vital and  necessary in its initial and early stage of business, or in a new location and new marketplace with less business risk and financial risk). Moreover, under the Company’s developmental license agreement, licensees invest principal funding for the entire business, together with the real estate interest. Although the Company usually has no capital offered or invested, it gets a royalty based on a percent of sales, and opening fees from franchisees that want to join the establishment and the brand.  In return, the Corporation’s operations management is aimed to promote the brand, and make certain or consistency and high quality at all its restaurants or fast food chain stores. In all, McDonald’s top executives would like to improve cost effective and efficient, enhance the values of its stakeholders, and ensure superior support of operations management with foster and strengthen customer services, management, and finance excellence.