1031 Exchange Investing Articles > Credit Tenants

Credit tenants are typically national or large regional organizations with investment grade credit. We profile credit tenants and post our summaries here.

McDonald's Corporate Profile

S&P Rated: Investment Grade A 

Current Annual Revenue: $28 billion
Current Gross Profit: $10.8 billion
Current Annual Net Income: $5.4 billion
2012 Fiscal Yr. Revenue Growth: -0.7%

The McDonald's Corporation (NYSE: MCD) is the largest foodservice franchisor in the world. It employs more than 1.7 million people. There are over 34,000 McDonald’s restaurants in 119 countries, which serve around 69 million people every day. Approximately 59% of these locations are owned and operated by conventional franchisees, approximately 21% are licensed to foreign affiliates or via developmental licenses, and approximately 20% are corporate-owned. The company often owns the property on which its franchise locations are built, and earns revenue from the rents, royalties, and franchise fees of the franchisees, in addition to product sales in corporate-owned restaurants. The core products sold by McDonald’s are: hamburgers, chicken, french fries, breakfast items, soft drinks, milkshakes, and desserts. The company has recently ventured into salads, fish, wraps, smoothies, fruit, and Starbucks-style coffee-based beverages. On top of this, the company also invests in other chain restaurants, such as Chipotle and Donatos Pizza, and owns other restaurant brands, including Piles Cafe. The McDonald’s Corporation's annual revenue exceeded $27 billion in 2012, and profits exceeded $5 billion.

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