McDonald's(US:MCD) 投中网·2025-07-30 06:36Core Viewpoint - McDonald's is planning to sell eight retail properties in Hong Kong, with a total market value of approximately HKD 1.2 billion, as part of a phased strategy to divest all its properties in the region, which are valued at over HKD 3 billion [3][4][5]. Summary by Sections Property Sale Details - The properties for sale are located in key areas such as Tsim Sha Tsui, Causeway Bay, and Mong Kok, with sizes ranging from approximately 6,800 square feet to 19,000 square feet [3]. - The auction for these properties is set to close on September 16, with JLL acting as the exclusive agent [3]. Market Context - The overall market for retail properties in Hong Kong is currently experiencing a downturn, with capital values in core areas declining by 2.3% quarter-on-quarter and 5.4% year-on-year, and down 70.5% compared to ten years ago [7]. - The average estimated return rate for core area retail properties is approximately 2.47% based on net effective rent [7]. McDonald's Business Model - McDonald's operates primarily on a franchise model, with 95% of its restaurants globally being franchised, while rental income significantly contributes to its overall revenue [5][12]. - In 2024, McDonald's reported total revenues of USD 25.92 billion, with rental income accounting for approximately 38.65% of total revenue, amounting to USD 10.01 billion [12]. Historical Context - McDonald's has a long history of real estate investment, dating back to the 1970s, when it was emphasized that the core business is real estate rather than just selling food [11]. - The company has previously sold properties in Hong Kong, generating profits of nearly HKD 100 million in past transactions [13]. Future Outlook - McDonald's has indicated that it will continue to evaluate its property holdings and optimize its real estate portfolio, with no immediate changes planned for restaurant operations in the properties being sold [9].