McDonald's Equity "Sweet Spot"

Most McDonald's Operators have seen a recent brochure advertising three stores 
for sale.

Click HERE for brochure

I've argued for years that there is much more to pricing McDonald's stores than cash

flow ratios.While not passing judgment on the asking price of these stores this package

does have a "Sweet Spot".

The "Sweet Spot" is the length of the remaining franchise terms (12 yrs, 10 yrs, 14 yrs).

These years give a buyer some time to justify required reinvestments triggered by the 

sale before having to worry about a rewrite.


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