McDonald’s earns more from real estate than flipping burgers, thanks to its unique franchise model.
Rather than relying solely on food sales, McDonald’s owns the land and buildings for many of its locations and leases them to franchisees. These franchisees pay rent, often based on a percentage of sales, along with other fees. This means McDonald’s earns a steady income from rent regardless of how individual stores perform.
By acting like a landlord, McDonald’s turns its global footprint into a powerful asset, giving it consistent cash flow and significant influence over its franchise network.
Market Wrap
Trump vs. Powell Sends Ripples Through Markets
Trump's Renewed Attacks on Fed Chair Powell:
President Donald Trump intensified his criticism of Federal Reserve Chair Jerome Powell, publicly labeling him a "major loser" and suggesting he should be fired. These remarks raised concerns about the independence of the Federal Reserve and contributed to market volatility.
Economic Indicators Signal Slowdown:
The Conference Board's Leading Economic Index (LEI) for the U.S. fell by 0.7% in March, indicating a potential slowdown in economic activity. This decline, coupled with reduced GDP growth forecasts, suggests that the economy may be entering a period of reduced growth.
IMF Spring Meetings Highlight Trade Tensions:
At the International Monetary Fund’s Spring Meetings held April 21–26, 2025, in Washington, D.C., global finance leaders voiced concerns over rising protectionism and its threat to global economic stability. Discussions stressed the importance of coordinated trade policies to reduce the risk of a global slowdown.
Dollar Drops, Gold Hits Record:
The U.S. dollar fell to a three-year low while gold surged past $3,400 an ounce, as investors sought safety amid recession fears and inflation concerns driven by new tariffs.
Nvidia Corporation shares dropped 4.5% following reports that Huawei Technologies plans to commence mass shipments of an advanced AI chip in China. This development raised concerns about increased competition in the AI chip market, potentially affecting Nvidia's market share and future growth prospects.
Tesla Inc. shares fell nearly 6% to $227.50 ahead of its quarterly earnings report scheduled for Tuesday. The decline was attributed to concerns over production delays for the new Model Y variant and the impact of escalating tariffs on the company's operations.
UnitedHealth Group Inc. shares continued to decline after experiencing their worst trading day since 1998 last Thursday. The ongoing sell-off is due to the company's reduced profit forecast and higher-than-expected medical costs, which have raised concerns about the sustainability of its earnings growth.
Netflix Inc. shares rose 1.5% following the company's better-than-expected first-quarter earnings report released after the market closed on Thursday. Netflix reported $10.54 billion in revenue and earnings per share of $6.61, surpassing analyst expectations. The strong performance led several analysts to raise their price targets for the stock.
Salesforce Inc. shares fell after DA Davidson downgraded the stock, expressing concerns that the company's aggressive push into AI initiatives might be diverting attention from its core customer relationship management business.
Uber Technologies Inc. shares declined 3% after the Federal Trade Commission filed a lawsuit alleging deceptive billing and cancellation practices related to its Uber One subscription service. The legal action has raised investor concerns about potential regulatory penalties and the impact on Uber's subscription-based revenue streams.
Capital One Financial Corp. shares increased after receiving regulatory approval for its $35.3 billion acquisition of Discover Financial Services, a move expected to enhance its credit card and banking operations.
Discover Financial Services shares rose following the announcement that U.S. regulators approved Capital One's $35.3 billion acquisition of Discover, signaling a significant consolidation in the financial services sector.
Fidelity National Information Services Inc. shares gained after the company agreed to an asset swap with Global Payments, acquiring Global Payments' issuer business while selling its Worldpay merchant services unit.
Humana Inc. shares fell continuing a downward trend as the company faces challenges related to higher-than-expected medical expenses and a reduced profit forecast.
Microchip Technology Inc. shares advanced leading gains on the Nasdaq, as the semiconductor company reported strong demand for its microcontroller products despite broader market volatility.
Dollar General Corp. shares rose benefiting from investor interest in discount retailers that are perceived as more resilient amid economic uncertainties.
Global Payments Inc. shares dropped following the asset swap deal with Fidelity National Information Services, as investors assessed the strategic implications of the transaction.
Universal Health Services Inc. shares plunged making it one of the top losers on the S&P 500, amid broader concerns over rising medical costs and potential impacts from recent healthcare policy changes.
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