Morning Report Monday 17 November 2014
Fast Food giants power ahead in both the US and Australia
It’s a very pleasant change to see an Australian company's share price outperform a US goliath in the same sector, albeit during different stages of the respective company’s evolution. McDonald’s is an amazing story, a company that began in 1940 as a barbecue restaurant, and evolved into a hamburger stand in 1948 became the world’s largest chain of hamburger fast food restaurants serving around 68 million customers daily in 119 countries. McDonald’s restaurants are franchisee / affiliate and company revenue comes from rent, royalties as well as food sales, hence it’s often referred to as property business. Domino’s Pizza Enterprise (DMP) is a master franchise owner of the US brand that commenced operation in Red Hill, Brisbane in 1978 as Silvio's Dial-A-Pizza which expanded to over 70 locations by 1993, the company purchased the Domino brand and rebranding in 1996. Domino’s currently operates a hybrid model with 80% franchise and 20% corporate.
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