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McDonald’s: Franchise Accounting and the $5 Meal

Sa-Pyung Sean Shin, Seil Kim

商品編號:W39454
出版日期:2025/04/29
再版日期:
商品來源:
商品主題:Accounting; Finance
商品類型:Case (Pub Mat)
涵蓋議題:Franchise;Inflation;Equity;Historical Cost
難易度:4 - Undergraduate/MBA
內容長度:16 頁
地域:
產業:Accommodation & Food Services
事件年度:2024

In July 2024, McDonald’s Corporation (McDonald’s) faced a strategic dilemma amid rising inflation and interest rates. The introduction of a $5 Meal Deal, designed to attract cost-sensitive customers, sparked concerns among franchisees about shrinking profit margins in the context of McDonald’s franchise-heavy model, which relied on revenue from rent and royalties. McDonald’s had also made substantial real estate investment a core part of its business strategy; this provided stable income but also brought significant liabilities. The company’s chief executive officer needed to consider how the $5 Meal Deal would affect McDonald’s financial resilience and margins in a high-inflation and high-interest-rate environment. What would its impact be on both franchised and company-operated restaurants?

教學手冊:McDonald’s: Franchise Accounting and the $5 Meal Deal - Teaching Note
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