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Ryan Moore

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Monitoring Contribution Margins: The Benefits for McDonald’s Franchisees

Posted by Ryan Moore on Wed, May 8, 2019

A sixteenth century English romance writer named George Pettie once quipped, “So long as I know it not, it hurteth mee not.” In other words, what you don’t know can’t hurt you.

While the merits of this sentiment may be debatable, one version of the opposite certainly is not: What you do know can help you. Especially when it comes to your McDonald’s business: Financially speaking, what you know or can learn from past performance – both recent and over time – will help you make better decisions in the future.

Regular analysis of certain metrics is how you can make your business more profitable, avoid making poor decisions (again), and separate yourself from the ever more crowded marketplace. One such financial metric that is often overlooked yet unquestionably important for you to analyze and understand is contribution margin.

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Topics: McDonald's management

Should a McDonald’s Franchisee be a C Corp? Pros & Cons

Posted by Ryan Moore on Thu, Feb 7, 2019

Now that tax reform through the Tax Cuts and Jobs Act of 2017 is no longer breaking news, it’s time we take a closer look at a question that arose for McDonald’s franchisees as a result of the change in the tax law.

One of the headline reforms of the new legislation was the slashing of the corporate tax rate from the graduated maximum of 35% to a flat 21%. This begged the question, “Is it now more beneficial for a McDonald’s Owner/Operator to be a C Corporation than a pass-through S Corporation?”

Without examining the merits of the latter choice of entity type, let us instead lay out some (but not all) of the pros and cons of operating your McDonald’s business as a C Corporation.

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Topics: McDonald's management, 2017 Federal Tax Reform

Buying a New Restaurant? Borrow Techniques from a Turnaround CFO

Posted by Ryan Moore on Thu, Nov 15, 2018

Growing your business is the primary focus of every entrepreneur. Whether growth occurs by way of increasing sales and cash flows at existing business divisions or via acquisition and expansion, the challenges faced are often strikingly similar.

That being said, let’s examine for a moment the prospects and hurdles one will often face when buying a new restaurant, through the lens of a turnaround CFO.

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Topics: McDonald's management, Business consulting, Restaurants

Business Productivity and the Rule of Three

Posted by Ryan Moore on Thu, Apr 20, 2017

We all sometimes wish that there were more hours in the day or that we could somehow clone ourselves in order to get everything that we needed or wanted to get done, done … right?

In our increasingly complex and time-constrained world, the concept of productivity takes center stage. We are left pondering questions like:

  • How do you really become more productive?
  • How do I measure my productivity?
  • Is it even possible for me to get more done than I already do?
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Topics: Business consulting

Your McDonald’s Franchise Investment/Re-Investment – Will It Really Pay Off?

Posted by Ryan Moore on Tue, Apr 11, 2017

The business of owning and operating a McDonald’s restaurant franchise is without a doubt, capital intensive. From the hefty initial investment to the steady stream of re-investments to keep your restaurant operating at peak performance, the amount of capital poured into your business is substantial.

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Topics: McDonald's management

How Much is My McDonald’s Restaurant Worth? A Valuation Primer

Posted by Ryan Moore on Tue, Mar 14, 2017

Whether you’re looking to buy a McDonald’s restaurant, sell a restaurant, gift some ownership to a Next Gen, or are just plain curious, the question of value is of primary concern. Ask any valuator worth their salt and he or she will tell you, valuation is an art, not a science.

There is no black and white formula for determining what a McDonald’s franchise is worth. However, there are time tested and generally accepted methods within which one can work to derive a fair value.

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Topics: McDonald's management, Business Valuation

How McDonald’s Franchisees Can Best Manage Risk

Posted by Ryan Moore on Thu, Jan 12, 2017

The term risk management is one that can be found with increasing frequency these days, both on television and in print. It’s not necessarily fodder for lively dinner conversation, but the timing of when you get to enjoy that next expensive steak could very well depend on how well versed you are on the topic of risk.

Put simply, risk management is the process of identification, analysis, and acceptance of uncertainty in business decisions. The primary objective of risk management is to provide the assurance that uncertainty does not interfere or prevent one from achieving their business goals. Risks can come from various sources including uncertainty in financial markets, threats from operational failures, legal liabilities, credit risk, accidents, natural causes and disasters, ever increasing competition, or other uncertain or unpredictable events.

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Topics: McDonald's management

Do You Need to Pay Estimated Taxes? Guidance for McDonald’s Owner/Operators

Posted by Ryan Moore on Tue, Nov 1, 2016

The concept of having to pay taxes is often times more than enough to make one go cross-eyed. “I’ve worked really hard all year and I have to give how much to Uncle Sam!?!”

Add to that the potential of being charged interest and penalties for not giving enough to the government periodically throughout the year and you start to wonder why it is you’re even working at all.

While that is clearly hyperbole, the exercise of calculating the amount of estimated tax one is required to pay on an annual basis is confusing and requires an in-depth knowledge of the rules of the game.

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Topics: McDonald's management, Business tax planning

McDonald’s Owner/Operators: How to Prepare for Tax Season When Profits are Up

Posted by Ryan Moore on Thu, Sep 22, 2016

The cyclical pattern of business is just that, cyclical. Booms and busts, highs and lows, expansions and recessions, good times and bad times, or more simply put, you’re either making money or you’re not.

When your business is enduring one of the low points of the cycle, taxes are not often top of mind. Generally speaking, when you’re not making money, you typically don’t have to worry about paying a lot in taxes.

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Topics: McDonald's management

How McDonald’s Owner/Operators Can Manage Cash While in Growth Mode

Posted by Ryan Moore on Thu, Aug 18, 2016

Cash flow is the life-blood of any business, be it quick-service restaurants, retail, professional services, construction – it’s what keeps the lights on and ultimately separates success from failure.

While positive cash flow is always the goal, there are myriad degrees of positive cash flow. Clearly, working to maximize the level of positive cash flow coming from your business’s normal operations is key, but almost as important is how you deploy (or accumulate) this cash flow.

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Topics: McDonald's management

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