Quote:
Originally Posted by notjoe
Their Trademark?
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The 2011 McDonalds annual report (annual reports make fun reading) lists as largest asset
Goodwill at $2,653 million
Cash at $2,335 million
Real Estate is not even listed
Goodwill can include the original cost to incorporate, but is probably +95% the trademarks and patents
McDonalds franchises out a good chunk of the business, so no real estate there.
If the had any sizeable real estate, it would have to be on the balance sheet. Many large corporations own zero real estate. They would rather sell off the asset and lease back. Gives them free cash to use for business expansion. I worked for a major movie theatre company, not only did they lease every theatre but also the home office. Also when a business wants to close a location, they may have to wait forever to find a buyer. With a lease, they just walk away, usually paying an early out fee.