McDonald's Is Testing a Beverage Chain Concept. Why That Could Be Game-Changing for the Company.
McDonald's (NYSE: MCD) will soon test a concept for a small-format beverage concept called CosMc's. It has opened a test location in Bolingbrook, Illinois, soon followed by other test locations in the San Antonio and Dallas/Fort Worth areas.
Admittedly, since the company plans to test the format for now, it will likely not affect the stock immediately. But if it launches the concept nationwide, it could breathe new life into the restaurant stock. Here's why.
A possible CosMc's franchise is more evident if one understands the McDonald's business model. The company relies heavily on franchise-related fees and rents, as it owns the buildings operated by franchise holders. It also collects a 4% fee on all restaurant sales, mitigating the impact of weak sales if business conditions worsen.
Source Fool.com