Fast Food Nation

The company followed cheskins advice and retained the

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Unformatted text preview: le for the McDonald’s Corporation. “We are not basically in the food business,” Sonneborn once told a group of Wall Street investors, expressing an unsentimental view of McDonald’s that Kroc never endorsed. “We are in the real estate business. The only reason we sell fifteen cent hamburgers is because they are the greatest producer of revenue from which our tenants can pay us our rent.” In the 1960s and 1970s McDonald’s was much like the Microsoft of the 1990s, creating scores of new millionaires. During a rough period for the McDonald’s Corporation, when money was still tight, Kroc paid his secretary with stock. June Martino’s 10 percent stake in Mc- Donald’s later allowed her to retire and live comfortably at an oceanfront Palm Beach estate. The wealth attained by Kroc’s secretary vastly exceeded that of the McDonald brothers, who relinquished their claim to 0.5 percent of the chain’s annual revenues in 1961. After taxes, the sale brought Richard and Mac McDonald about $1 million each. Had the brothers held on to their share of the company’...
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