<< McDonalds has just bought all Boston Market locations and one of the things they plan to do is turn them into Donato's Pizza.>>
What the press release told us was that McDonalds purchased 859 existing locations (within 33 states) + the franchise rights to 108 (as yet non-existing, unoperating units) for $173.5 million, or $231,025 per EXISTING, OPERATING, potentionally profit generating unit.
Furthermore, it told us that MCD intends to convert SOME OF these 751 EXISTING and SOME OF these 108 potentially existing sites THAT IT DOESN'T RETAIN AS BOSTON MARKET sites to
Furthermore, it told us that MCD intends to convert SOME OF these 751 EXISTING and SOME OF these 108 potentially existing sites THAT IT DOESN'T RETAIN AS BOSTON MARKET sites to:
a) McDonalds b) Chipotle Mexican Grill c) Donato's Pizza
So we have 751 existing sites potentially diversified among 4 restaurant names, or an average of about 188 units per name which, if they were applied to the 33 states BOST is in, averages < 6 units per state.
PZZA, by comparison has, as its most recent pr tells us, 2201 units throughout the United States + 5 international markets.
PZZA's web site apparently indicates that the U.S.' territorial possession of Puerto Rico is considered an "international" market. If I were a citizen and resident of Puerto Rico, and found myself being listed as being in an "international" market, I'd consider that an insult and let those insensitive sorts at corporate know what they could do with their pizza.
Be that as it may, there are a total of 24 units listed under the 5 international markets, leaving 2,177 stateside. The General is fairly certain that PZZA does not have units within all 50 states but does not recall the exact number of states that it's in. If we're talkin' 35 states, that's an average of 62+ per state. 40 states would be 54+ units per and 45 states would be 48+ units per state. Anyway, comparison-wise, that'd be somewhere between 8 to 10 times the number of Donato's conversions MCD might have (if averaged) in the 33 state/markets it's buying (@ $231,025 per existing unit).
Last Monday, by contrast, we learned that PZZA is buying 205 Perfect Pizza units for $32.5 million, or $158,537 per existing unit over in England. $231,025 versus $158,537 per existing unit. That's 45+% more per acquisition cost per unit. Put another way, PZZA's acquired units cost slightly more than 2/3rds (per unit) of what MCD's cost. Pizza-wise, is everything else over in England cost 2/3rds of domestic costs? Who has to sell more pizza's per unit to make costs? MCD's Donato's or PZZA's (formerly) Perfect Pizza?