McDonalds is a real estate company that rents out buildings and makes them sell burgers s they can pay the rent. *You said use it somewhere. You never specified WHERE to use it.*
I'm an accountant and I'm GENUINELY surprised how accurate and well researched this is. Besides a few tiny mistakes here and there with semantics, you were spot on. Good job I can't finish the video, though cause it makes me feel like I'm doing my intermediate accounting class again lol. Giving me PTSD over here
@@doocon1489 I don’t think there were many mistakes, just omissions. For example, he didn’t address loss carry forwarding in his amortization example. The whole video is just a bit oversimplified, which is fine considering the audience
I'm a Retired financial advisor and I think it pretty great. Good for you on the accounting that made me want to drop those 400 level classes and just pay you.
When a theory teaches more than a school. I had to learn this AFTER having a business for 3 years, I wish this was a video way sooner, it would have saved me a lot of tax research
The fact you owe your McSoul to McDonalds implies it's already theirs since it's got the Mc in front of it, and they've just been waiting to strike all this time. McDonalds is inevitable
The funny thing is the ice cream machine isn't usually broken. It's just a lazy lie so they don't have to explain that it shuts down at a certain time every day to clean itself
Finance grad here, this simple accounting explanation was done better and more interesting than my day 1 accounting class. The example and explanation through depreciation and amortization are great and I just wished education was made more interesting like this. This is exactly why I love all the Game Theory channels.
The McDonald's brothers would be turning in their graves if they saw the 'efficiency' that's implemented in a modern McDonald's. Takes 20+ minutes to get your food 😂
@@PokeMario-pk4ot once my mom got like 2 or 3 burgers and 40 nuggets and it took them like 30 min and they forgot us and gave our food to other people and forgot our fries and never gave us a receipt
Well actually in other branch including us, we do not really prefer to say, "Welcome to McDonald's" because you know, you're already in the McDonald's why would the crew need to tell you that?
It's fun to see accounting being represented. It's just a shame the information was not correct. I left a earlier comment about this but basically companies prefer using bonus depreciation (100% tax depreciation) for the first year to get the tax benefit sooner. Also, you CAN keep the tax benefits in years where depreciation is greater then income.
Why'd you have to go and make things so complicated? I see the way you're acting like you're somebody else. Gets me frustrated. Just admit that you love the videos I make, my dear kai
Theory: the next theory channel will be: “Conspiracy Theory” When matpat was talking about the illuminati, a purple theory sign with an eye popped out for a few frames.
Never thought I’d encounter the word “amortize” outside of work. Our company is sometimes asked to amortize expedite fees by working the cost into the unit price of their order, saving them the hassle of issuing a new purchase order.
It feels unreal being able to consume these refined and select collections of knowledge you beautifully present to us, totally free of cost. Thank you so much Matpat and everyone else behind this, your generous souls will be blessed greatly!
This channel is truly magical. I just watched a 15 minute video about big corporations doing taxes, and I was entertained the whole way through. This community is incredible.
I wanted to say, thank you so much for teaching us! I've watched your channels every once in a while since 2014, and it feels like home when I come back. I really dig history and science, so this episode (and this channel) are really up my alley!
I went for an interview at McDs once. The guy asked me “what is McDonald’s?” To which I replied “it’s a fast food chain of restaurants”. He sighed at me, apparently the answer he wanted was “one of the top charitable donating companies worldwide.” Like how was I supposed to know that’s the answer he wanted?
This is somewhat similar to how Little Caesars makes their money. They can afford to sell crappy pizza at a low price because they are really in the food distribution business. If such a video doesn't already exist, I should love to see such a video on how Little Caesars works!
So, the question is: "Why do franchisees agree to these terms so frequently?" Well, running a restaurant is very difficult, and the vast majority run on slim to no margins. Brand name alone helps to improve your chances. But also McDonald's does a large part of the work for you. At least as far as planning goes. You get to run your business in an area the franchise has deemed optimal...and they probably know more about that than you do, considering collective experience. You are also given your menus, which means you know what you are going to make, and how you should make them. This standardization also helps to get customers, due to them knowing what they can get, regardless of the McDonald's. Being a Franchisee is basically the entry level job of starting a business. It shows you the ropes, and guides you through many of your responsibilities.
There's also a bit of a fail-safe in that if your franchise location is unsuccessful for one reason or another, the franchiser will get you closed down and sold back before you're knee deep in debt. Or if, god forbid, some mob decides to burn down your Wendy's, you'll probably have the building insured through the franchiser.
@@maddogerios This pops up as a notification for me, I check, and see that it's gone up twenty since you posted that. It's amazing how popular the idea of a conspiracy theory channel is. Take a hint, MatPat.
School never reached anything financially useful. I mean. I'm Mexican, so our experience might be different, but I suspect most of the world is suffering a similar situation. After all the complaint is the same across several countries and generations X to Z (Whose oldest members were born in 2000). I'm sure the 2010s kids will have the same complaint soon.
Technically restaurants themselves are "owned" by "independent" contractor. So you actually don't work for McDonald, just in McDonald restaurant. Also it isn't a theory. McDonald officially is a real estate company.
Man I love the way you explain things. Like you take a concept that seems confusing and you make it easier to understand. I would love to see a channel that explained all the stuff new adults need to know that schools failed to teach us, like taxes or insurance. You have a talent for explaining the info while still being engaging
@@nainnani7620 i just thought that it would be interesting to talk about. I mean, he went into how many chicken nuggets you might need to survive a fall.(even if it wasnt possible)
I want to grow up to be an entrepreneur. But of course, first I need to learn about business. And wow, this video actually tells me a lot about business and economics, and you explain it in an easy to understand way. I feel like I should rewatch your video and take notes! Thank you
Hey, accountant here. I really enjoy your videos but there is a couple of things I want to point out, although I am not a tax specialist. The first is that companies prefer using bonus depreciation, which allows them to use 100% tax depreciation in the first year rather then what you said about a preference to straight-line over the life of the asset. This is so companies can have their tax benefit immediately rather then in the future. Then that goes into the whole idea of present value of money but I will gloss over that for now. Also, your point about going over your income in the first year is incorrect. There is the concept of deferred tax assets that will carry-over losses for future years, so that tax benefit is never lost.
From a CPA, IAgreed. He really messed up that whole part of the video. The IRS REQUIRES companies to use depreciation over the life of the property and allows for exception to deduct it all immediately like the business really wants to. In his example, if they were allowed to deduct it all immediately, they would show a $50,000 loss in year 1 and then in year 2 show a $50,000 profit, but would be a to deduct the previous years Net Operating Loss and would show $0 profit for year 2 as well. They would then pay tax on $50,000 in years 3, 4, and 5 like he said and like you said companies will defer that tax bill as long as possible because they would rather have the money now than later.
DING DING DING. Tax specialist here. you nailed it. It is interesting how little people understand how taxes work. Even then, doing some research about a tax topic will not yield useful information unless you understand the basics of the specific area you are researching. In short, there is a reason CPA firms earn what they do. Taringator and Brian B nailed it on the head here, guys.
I came to the comment section looking for this comment. As a Accounting student I knew he got a lot of facts wrong, but I knew I didn't know enough to do the subject justice. Thanks for helping me understand what he was wrong about.
Former CPA here... a-yup. Tax law is incredibly complex and always changing. If MattPat had actually done all the necessary research in to taxes, land, depreciation, etc - he could have passed that section of the cpa exam! Ie, it’s a LOT to take in.
"I think MatPat had too much fast food and all the salt dried his brain". People say this theory is far fetched....but be honest, what MatPat theory ISN'T farfetched? Isn't that one of the reasons why we like them?
But this one isnt farfetched, its simply a fact. If their earnings from real estate exceed their food earnings then they are absolutely primarily a real estate agency regardless of how they want the public sphere to recognize them.
I know i’m seeing this video a little late but I think when matpat was calculating the tax for “burger bot 2000” he made a small discrepancy that actually means they are the same amount of tax. When he was calculating it for the second year with no depreciation it went from -50,000 from the first year to +50,000 even though in the second year you only made 50,000 when it should have leveled out to zero with this you would takeoff 10,500 of the total making it equal to the amount you would make from separating the costs. Love the theories keep it up.
You forgot another point of fact....you know how every few years, they "renovate" their stores? Yeah, they depreciate their buildings over a period of time and then they invest money into construction costs, which also reduces their cost basis and resets the close on the building depreciation. This is common....it's also a similar approach to how money launderers work. Pretty hilarious to me, rich people getting richer by doing the same things criminals do, but they don't get in trouble for it. :)
Very informative. Thank you, Matt. Wish rich companies didn't have these sort of bs tax loopholes when individual people trying to make ends meet have no access to this kind of thing.
@@RZDraws it was because academies and schools and stuff were made in the Industrial Age to produce obedient workers,and fsr it hasn’t changed for 200 years
Food Theory is wrong by that i mean their calculation for taxes are wron. Even if you make loss in year 1 you can claim that loss in next year to set off your profits i.e. if you make 50,000$ at the end of year 1 it will be setteled with the earnings from Year 2 which is again 50,000$ so at the end of year 2 you will show IRS that you have not made any profit so you are not laible to pay any taxes in 2nd year also but from 3rd year there are no losses and so you have to pay taxes which will end up $31,500 even without depreciation. The real reason is not that they will save taxes but is something known as "Discounted CashFlow". DCF is why any business shows Depriciation rather than claming all costs at year 1.
I worked at McDonald's 12 years ago in Knoxville, TN and it was actually a very good place. Although I only get started out at $7.25 and ended at $8.50 an hour. But I've ate and been to so many messed up McDonald's in my life. I was at one that a person got stabbed at, many fights broke out on a lot of them, some of them were dirty, etc.
The Thumbnail: McDonald’s is not a restaurant All of us: You’re right Matpat: Oh great y’all actually understood! All of us: It’s a Fast Food Resturant Matpat:*Facepalm*
yeah, thats pretty much what i thought at first. i always thought it was weird how certain mcdonalds locations were 'owened' by certain companies and my frozen mcchicken wasnt longmont's problem since i bought it 3 miles north of them. left me really bitter.
I'm glad to have known the crazy fact about McDonalds being more of a real estate company than a restaurant a couple of years back because of the film 'The Founder'. And yes, it is a really good film! I actually watch it at least twice a year just because of how good the story and performances are. 😀
I like some of the stuff they have there, but even I'll question if it's actually food. Not everything that tastes good is food. (I am not going to be more specific.)
You must have read Rich Dad, Poor Dad, by Robert Kiyosaki. In the book, he talks about Ray Kroc addressing an MBA class graduate class, wherehe asks, "What business am I in?" A graduate responds, "The hamburger business!" Kroc then responds, "No, I'm in the real estate business." It's one of my favorite books, and it was like you took this right out of it 😂👌🏻 10/10
I just love the fact there’s McUFO in Roswell. Even aliens love Big Macs. Seriously they really go all out at some of their restaurants. Like a Georgian style McMansion on Long Island or a DC3 in New Zealand. They try their best to attract tourists while also pleasing the locals
I LOVE how this channel in general (specifically the values of the pizza, chips and soda vodeos) teaches you stuff you actually use in life **cough poetry cough**
This was probably my favorite theory episode. I know this was all about how Mcdonald's isn't a restaurant but I started a 3D printing business this year and my goodness this was incredibly helpful just to hear and watch. I played through it a few times to try and make it stick. Some people may see these business practices as sleezy but really the government is kind of trash so it's just all about how you play the game. Matpat, this was so useful for me to watch. I really feel like the stuff outlined here can benefit my business greatly. I've been worried about taxes since I just started this business of mine but I feel like I can make it through. Thank you Matpat and all his editors for making this visually pleasing and incredibly informative. Also, I kinda want the fourth theory channel to be a business theory channel now
Challenge: do a theory about dragonfruit. No real reason. I'm just eating one right now, thinking about how little I know about it. Maybe it could be about why they're in every big brand grocery store I've ever been to, with a huge section to themselves, despite being really weird, practically tasteless, and barely being bought at all. I'm always wondering about that.
9:00 Actually, businesses can carry over losses to future years. So on year 2, they get to deduct the remaining $50,000 loss from year 1, leaving them with $0 in taxes in year 2 too. In fact, amortization is almost always NOT the way to go due to opportunity costs, so accountants usually deduct expenses right away in a lump sum whenever possible.
Anyone else bugged by the McDonalds restaurants spreading “out from California” popped up in the animation east to west, instead of west to east? No? Just me?
Hello everyone , hope you are having a great day Here’s your chance to for fill a random act of kindness I’ve been streaming daily and uploading extremely often on an attempt to try and get 1k subscribers I’m struggling quite hard right now and any support is appreciated , and I understand people hate comments like this but I need some support😉
No fast food joint is a restaurant, they are low-key food distribution centers, the customers that go there take the food and go, the front lobby where the tables are is a cafeteria/mess hall for workers when they're on a lunch break.
School: mitochondria is the powerhouse of the cell. Students: ok... but how do I pay taxes? Schools: you don't need to know that. Food Theory: I got you homie.
Hello everyone , hope you are having a great day Here’s your chance to for fill a random act of kindness I’ve been streaming daily and uploading extremely often on an attempt to try and get 1k subscribers I’m struggling quite hard right now and any support is appreciated , and I understand people hate comments like this but I need some support😉
@AppleJuice did you see the burger king one? He seems a lot more sympathetic to multinational corporations than Howie Hawkins. Channel 4: "Political Theory" feat. JREG
Johnny Harris has a video on why the McDonalds ice cream machines are always broken, and it has a lot to do with the fact that these stores are individual franchises. Would love to see MatPat's take on it.
How is working at McDonald's like being an archaeologist in Athens?
You end up smelling like ancient grease.
Correct
I laughed way harder than I should have ! 😂😂😂
As a McDonalds Worker: I approve this message
You sir get +1 for that godly pun
Ooof
Use this quote somewhere: "McDonald's is a real estate company that rents out buildings and makes them sell burgers so they can pay the rent"
@@AFPinerosG u mean a frenchfries
McDonalds is a real estate company that rents out buildings and makes them sell burgers s they can pay the rent.
*You said use it somewhere. You never specified WHERE to use it.*
I’ll take random wacky bullshit for 500, Alex.
That doesn't actually sound that bad.
this video is just an explanation on how to be a better more successful buisness
“I have to sell my _McSoul_ to the company?!?”
Me: “Well that seemed obvious”
Ba ba ba basatan
*McObvious
@@ardour7793 i told u it wasnt a rick roll
@@ardour7793 ba da bing ba da boom i took your son
Imma Mcsell your Mcsoul to McDonald's
I'm an accountant and I'm GENUINELY surprised how accurate and well researched this is. Besides a few tiny mistakes here and there with semantics, you were spot on.
Good job
I can't finish the video, though cause it makes me feel like I'm doing my intermediate accounting class again lol. Giving me PTSD over here
What were the mistakes? Kinda curious
@@doocon1489 I don’t think there were many mistakes, just omissions. For example, he didn’t address loss carry forwarding in his amortization example. The whole video is just a bit oversimplified, which is fine considering the audience
He missed carryover losses in explaining 5 year amortization.
I'm a Retired financial advisor and I think it pretty great. Good for you on the accounting that made me want to drop those 400 level classes and just pay you.
SAAAAAAMEEEE
When a theory teaches more than a school.
I had to learn this AFTER having a business for 3 years, I wish this was a video way sooner, it would have saved me a lot of tax research
I am learning taxes in school
Your life was wasted to a superior real estate restaurant. Think about that.
this guys researched for u
or hire a trustworthy person who's devoted their life to fucking the govt outta your money
but hey nothing is too late
Yeah and next you're gonna tell me that Panera isn't a bread like OK Matpat this is getting farfetched
yeah
omg ur da real!!11!!
hi
Next up on Food Theory: Is a Baguette a mammal?
Y u everywhere
I little bit, but I still enjoy it
Mom: GET OUT OF YOUR ROOM AND GET A GIRLFRIEND
Me: SHUT UP MOM I'M LEARNING ECONOMICS
Heh
Ya dead son!
I'd classify it as Accounting
“YOU NEVER GET ME MOMM!!!”
it’s mum for me
and also why didn’t you choose something like “get a job or something” not “get a girlfriend”? makes more sense to me
The fact you owe your McSoul to McDonalds implies it's already theirs since it's got the Mc in front of it, and they've just been waiting to strike all this time. McDonalds is inevitable
Ever since you were born. That's why some people are afraid of clowns. They remember Ronald McDonald in the delivery room with their parents.
He's always McWatching. You can't escape Ronald. He will take your McSoul
yea man!!!!
That’s why they’ll never take ur actual soul. There’s no mc
@HighScoreGliscor HUUUGE MISSED OPPORTUNITY for a mcscaped pun
McDonald’s is a landlord?
“You’ll get your rent when you fix this goddamn ice cream machine!!!”
Aah a man of quality
I WANT MY ICECREAM MCDONALDS
The funny thing is the ice cream machine isn't usually broken. It's just a lazy lie so they don't have to explain that it shuts down at a certain time every day to clean itself
@@AceoftheVoid true LOL
>The Burger King flying behind
“Im still here, McPeter!”
Finance grad here, this simple accounting explanation was done better and more interesting than my day 1 accounting class. The example and explanation through depreciation and amortization are great and I just wished education was made more interesting like this. This is exactly why I love all the Game Theory channels.
Accounting grad here, I came looking for a comment like this!! Totally agree.
Matt pat you're the only person that makes talking about businesses interesting. You would make a great teacher.
Imagine how high all those grades would be if he was.
@@rosystrawberrywe'd all be geniuses! Nerds / geeks rule the world! 😀 🎆🎊🎉🥇🥇🥇🥇🥇
True he could be a great teacher
Company man is also a good channel.
Bold of you to assume he isn’t already teaching me stuff i never thought id want to know
The McDonald's brothers would be turning in their graves if they saw the 'efficiency' that's implemented in a modern McDonald's. Takes 20+ minutes to get your food 😂
And the quality is worse
How much food you ordering? I've never had to wait any more than 2 minutes
@@PokeMario-pk4ot
You must live in a lil town
20+ in our town it is 45+ your lucky
@@PokeMario-pk4ot once my mom got like 2 or 3 burgers and 40 nuggets and it took them like 30 min and they forgot us and gave our food to other people and forgot our fries and never gave us a receipt
"Welcome do McDonalds, may I take your McOrder"
"hey you don't have to say Mc before every word okay?"
"Okay boss, excuse me sir,
welcome to Donalds"
Well about 40% of Americans would prefer that name.
@@Cyril29a good one XD
They should put McDonald’s in Antarctica because the penguins need mc flurrys
Well actually in other branch including us, we do not really prefer to say, "Welcome to McDonald's" because you know, you're already in the McDonald's why would the crew need to tell you that?
@@illgorhythm I worked in one and we didn't say it either, we had to be fast so just straight up ask what they want
Food theory:
Teaching you about taxes more than school ever could
School teaching taxes? HA
It's fun to see accounting being represented. It's just a shame the information was not correct.
I left a earlier comment about this but basically companies prefer using bonus depreciation (100% tax depreciation) for the first year to get the tax benefit sooner. Also, you CAN keep the tax benefits in years where depreciation is greater then income.
Me: Wants to learn what are taxes
School: This is what is inside a mitocondria
@@alonsans school: this is what Emily made after the kid from across town mowed six lawns and found eight friends
A math test but If you get it wrong you get arrested.
After that Illuminati joke, I’m convinced his next channel will be “Conspiracy Theory”
But that’s just a theory, a CONSPIRACY THEORY
Why'd you have to go and make things so complicated? I see the way you're acting like you're somebody else. Gets me frustrated. Just admit that you love the videos I make, my dear kai
I like your name
@@AxxLAfriku wait, what?
@@AxxLAfriku big brain
@@martinuz64 - they're quoting Avril Lavigne's "Complicated". Also, there's a conspiracy that she's been replaced.
So, what did you learn today?
That McDonald's is a real estate company.
What did it cost?
*_Learning Taxes._*
AND YOU LEARNED THE WRONG FACT!! IN FACT, YOU SHOUD BE LIKE THIS WHEN YOU WHATCH THIS EVER MORE: .
Nothing's certain but death and taxes...
McDonald: not a restaurant
me: how many other lies have I been told by the council?
This deserves more likes
yes i agree
i am an 8 year old kid!!!
Yeah coolbeans
Dreams irl skin isn’t green
Theory: the next theory channel will be: “Conspiracy Theory”
When matpat was talking about the illuminati, a purple theory sign with an eye popped out for a few frames.
I was looking for a comment like this
Same, think so too
It is not a clue for a new channel, it was a tiny joke, if there was a new channel it's theme would be blue
Yeah but in a gtlive he said that he could never do a conspiracy theory
Meh, this is just a mini theory. I did not really put much effort into it.
Never thought I’d encounter the word “amortize” outside of work. Our company is sometimes asked to amortize expedite fees by working the cost into the unit price of their order, saving them the hassle of issuing a new purchase order.
It feels unreal being able to consume these refined and select collections of knowledge you beautifully present to us, totally free of cost. Thank you so much Matpat and everyone else behind this, your generous souls will be blessed greatly!
"Put on your business socks"
Jokes on you I went to school for finance. I own a drawer full of business socks!
OMG......
ua-cam.com/video/FSSFgWlDbJU/v-deo.html
@@heshamkaram5271 please stop SPAMMING •__•
"I am 4 parallel universes ahead of you!"
To powerful...👁👄👁
ShadowKing 7890 I reported it
This channel is truly magical. I just watched a 15 minute video about big corporations doing taxes, and I was entertained the whole way through. This community is incredible.
next channel : Tax Theory!
I checked the is be
Yannel
@@phone8691 what?
maybe
No, CONSPIRACY THEORY 1:56 (put it at 0.25x speed to see it clearly)
I wanted to say, thank you so much for teaching us! I've watched your channels every once in a while since 2014, and it feels like home when I come back.
I really dig history and science, so this episode (and this channel) are really up my alley!
I went for an interview at McDs once. The guy asked me “what is McDonald’s?” To which I replied “it’s a fast food chain of restaurants”.
He sighed at me, apparently the answer he wanted was “one of the top charitable donating companies worldwide.” Like how was I supposed to know that’s the answer he wanted?
Seriously?
They want you to go to their website and give them a regurgitated version of their about us page. 😉
Huh...
@@philiphunt-bull5817 mine wasn't that extreme, but yeah
I don’t know if they were more proud of the Ronald Mcdonald Foundation or how they shelter and feed homeless rats.
Game Theory: Making games more interesting
Film Theory: Adding More Lore
Food theory: questioning my sanity
And making you hungry
Hell9
@@littlevirus3562 Accurate
Everyone's gangsta until Ireland decides they're also a bakery with that bread
What bread
How is this the featured comment 😂
Wow your funny
@@UnknownError839 I ask the same questions as you boo
What bread I only see cake
This is somewhat similar to how Little Caesars makes their money. They can afford to sell crappy pizza at a low price because they are really in the food distribution business.
If such a video doesn't already exist, I should love to see such a video on how Little Caesars works!
He did lightly talk about it in his pizza toppings video if you're interested
So, the question is: "Why do franchisees agree to these terms so frequently?"
Well, running a restaurant is very difficult, and the vast majority run on slim to no margins. Brand name alone helps to improve your chances. But also McDonald's does a large part of the work for you. At least as far as planning goes.
You get to run your business in an area the franchise has deemed optimal...and they probably know more about that than you do, considering collective experience. You are also given your menus, which means you know what you are going to make, and how you should make them. This standardization also helps to get customers, due to them knowing what they can get, regardless of the McDonald's.
Being a Franchisee is basically the entry level job of starting a business. It shows you the ropes, and guides you through many of your responsibilities.
_ j
Lf
@Lord Waluigi I wish you the best of luck.
This is very well stated! I love it!
There's also a bit of a fail-safe in that if your franchise location is unsuccessful for one reason or another, the franchiser will get you closed down and sold back before you're knee deep in debt. Or if, god forbid, some mob decides to burn down your Wendy's, you'll probably have the building insured through the franchiser.
I imagine they will also take care of logistics stuff as well; like ordering ingredients and stuff ??
When MatPat watches “The Founder” and goes “yeah I can make a video about this”
OMG......
ua-cam.com/video/FSSFgWlDbJU/v-deo.html
@@heshamkaram5271 stop spamming bot
The founder?
Yep the founder lol
@@anti-terric1315 What’s that?
"Like when you realize that the Illuminati is actually real." >purple theory symbol flashes in background<
We need a purple conspiracy theory channel.
LIFE THEORY
Or you could say...
a "conspirthy" channel. ; )
@DINKLE BERG it works so well
I just saw 69 likes and I blinked and it changed to 77
(Ps. Noice)
@@maddogerios This pops up as a notification for me, I check, and see that it's gone up twenty since you posted that. It's amazing how popular the idea of a conspiracy theory channel is. Take a hint, MatPat.
"I owe my soul to the company store...."
Saint Peter don't you call me, cause I can't go
“You load sixteen tons, what do you get?
Another day over and you’re deeper in debt”
When a UA-cam channel that makes theories on food teaches you more about business than most schools
So fucking true
Yes
Facts
Bruh
School doesn't teach us how to survive in the real world
“Are you a restaurant or a real estate firm?
Mcdonalds: I’m playing both sides, so that i always come out on top
Me being bi: y e s
@@sekoseko5539 look we got a spammer here get em
@@starfireseraphim9696 this is fucking genius
This is teaching me more about finances than school at the moment and I love it.
School never reached anything financially useful.
I mean. I'm Mexican, so our experience might be different, but I suspect most of the world is suffering a similar situation. After all the complaint is the same across several countries and generations X to Z (Whose oldest members were born in 2000). I'm sure the 2010s kids will have the same complaint soon.
I was actually going to comment this so you beat me to it
economics in sophomore year, or macro and micro is what you got man
U missed the chance to say "I'm Mcloving it"
Yeah, poor financial education goals in schools is why everyone thinks Amazon legitimately pays $0 in taxes.
we need a full video of only food theory intros
they just get me every time 😂
"I'm working at a multi-billion dollar company that deals with real eastate"
"So you're an real estate agent?"
"No I flip burgers at McDonald's"
Technically restaurants themselves are "owned" by "independent" contractor. So you actually don't work for McDonald, just in McDonald restaurant. Also it isn't a theory. McDonald officially is a real estate company.
@@TheRezro what if the person works at one of those restaurants managed/owned by McDonald's themselfs?
that why the guy kick the partner out as soon as possible when he can made money off the rent..
WRYYYYYYYYYYY
@@vali69 They don't do that.
Man I love the way you explain things. Like you take a concept that seems confusing and you make it easier to understand. I would love to see a channel that explained all the stuff new adults need to know that schools failed to teach us, like taxes or insurance. You have a talent for explaining the info while still being engaging
Good idea , it can be called life theory
@@Ben.Kenobi87 Yesssss
Food theory: McDonald's is not a restaurant.
Me: *no it's a hotel*
OMG...........
ua-cam.com/video/FSSFgWlDbJU/v-deo.html
yup same i sleep in a car using the mcdonald's wifi
Omg !! ua-cam.com/video/oiBAR8vaAHk/v-deo.html
0:34 how have i never noticed that it's MatDonalds
"Where'd you learn how to do taxes?"
a UA-cam video about mcdonalds
"I don't pay taxes"
Stop the cap
@@SuperPope69 “me neither brother”
@@unknownyeet169 keshush mando'ade. Warriors stand strong together against tyranny.
@@SuperPope69 me y
....
"I owe my MCSOUL to the company?!"
That settles it. McDonald's is a cult.
Next theory ???
A cult I will join gladly
A McCult
McBlood for the McBlood God
@@lilynicholson7141 y e s
FINALLY!!! I've been waiting ALL WEEK!!!
Yes
Don’t you mean McWeek?
Good job wolf_gaming
Patience Iago... PATIENCE!
Its 3:00 AM here and still watching this
Oh my GAWD, he sang Flight Of The Conchord’s “Business Time!” I’m so happyyyyyyyyyy!!
McDonald's: Puts Mc in front of everything they own.
Batman: Finally a worthy opponent!
It took me 30 minutes to understand this comment.
Batmobile, batcave, batsuit, what else...
@@L16htW4rr10r - Batwayne Manor, Batalfred... Batbat and ball?
lmaoooo
@@L16htW4rr10r batpod,batterang,batwing.
7:27 "Land doesn't expire or deteriorate"
Louisiana: Let me introduce myself.
Haha
New Food Theory: How much soda and mentos do you have to use to make a functional jetpack
*_YES._*
They dont need to make a whole video about it it's just not gonna be long and intresting
@@nainnani7620 i just thought that it would be interesting to talk about. I mean, he went into how many chicken nuggets you might need to survive a fall.(even if it wasnt possible)
Absolutely.
Yes yes yes
McDonalds is a restaurant in the same way that Chuck E. Cheese is a Family Entertainment Centre that contains a restaurant.
I want to grow up to be an entrepreneur. But of course, first I need to learn about business. And wow, this video actually tells me a lot about business and economics, and you explain it in an easy to understand way. I feel like I should rewatch your video and take notes! Thank you
Insert sponsor spot here for Brilliant
OMG...............
ua-cam.com/video/FSSFgWlDbJU/v-deo.html
As a note. The tax information he gave was only partially accurate but overall it was wrong. Always consult a tax professional for that very reason.
Hey, accountant here. I really enjoy your videos but there is a couple of things I want to point out, although I am not a tax specialist. The first is that companies prefer using bonus depreciation, which allows them to use 100% tax depreciation in the first year rather then what you said about a preference to straight-line over the life of the asset. This is so companies can have their tax benefit immediately rather then in the future. Then that goes into the whole idea of present value of money but I will gloss over that for now.
Also, your point about going over your income in the first year is incorrect. There is the concept of deferred tax assets that will carry-over losses for future years, so that tax benefit is never lost.
From a CPA, IAgreed. He really messed up that whole part of the video. The IRS REQUIRES companies to use depreciation over the life of the property and allows for exception to deduct it all immediately like the business really wants to.
In his example, if they were allowed to deduct it all immediately, they would show a $50,000 loss in year 1 and then in year 2 show a $50,000 profit, but would be a to deduct the previous years Net Operating Loss and would show $0 profit for year 2 as well. They would then pay tax on $50,000 in years 3, 4, and 5 like he said and like you said companies will defer that tax bill as long as possible because they would rather have the money now than later.
DING DING DING. Tax specialist here. you nailed it. It is interesting how little people understand how taxes work. Even then, doing some research about a tax topic will not yield useful information unless you understand the basics of the specific area you are researching. In short, there is a reason CPA firms earn what they do. Taringator and Brian B nailed it on the head here, guys.
lol I have nothing to add, but I'm amused at how many CPAs watch this channel and since I am one too I wanted to pile on.
I came to the comment section looking for this comment. As a Accounting student I knew he got a lot of facts wrong, but I knew I didn't know enough to do the subject justice. Thanks for helping me understand what he was wrong about.
Former CPA here... a-yup. Tax law is incredibly complex and always changing. If MattPat had actually done all the necessary research in to taxes, land, depreciation, etc - he could have passed that section of the cpa exam! Ie, it’s a LOT to take in.
This taught me more about money, than my teachers ever had.
SAME
Ikr
Yeah even even I didn't understand the percentages.😅
Lol XD true
Facts tho
Omg love the flight of the conchords reference. Like the crossover i didn't know i needed!
McDonald's is gonna be the FNAF of Food Theory. i'm calling it.
It shall be noted.
Yes!!!
First he has to get the CEO to start trolling him.
@@howwiee rlly bro
OMG...............
ua-cam.com/video/FSSFgWlDbJU/v-deo.html
"I think MatPat had too much fast food and all the salt dried his brain". People say this theory is far fetched....but be honest, what MatPat theory ISN'T farfetched? Isn't that one of the reasons why we like them?
Yep
But this one isnt farfetched, its simply a fact. If their earnings from real estate exceed their food earnings then they are absolutely primarily a real estate agency regardless of how they want the public sphere to recognize them.
Isn't it kinda crazy how this 15 minute video taught us more about accounting and business than school will ever teach you
Bruh just take business or financial math, you learn quite a bit
well, school teaches you basic stuff, this is why specific schools exist for want you want to pursue. Like business school and law school
You get used to learning more from UA-cam than school if you watch Matpat's channels enough.
Well its because just like Advanced math,accounting and business isnt needed in real lif-- wait.
Unless you take an accounting course
I know i’m seeing this video a little late but I think when matpat was calculating the tax for “burger bot 2000” he made a small discrepancy that actually means they are the same amount of tax. When he was calculating it for the second year with no depreciation it went from -50,000 from the first year to +50,000 even though in the second year you only made 50,000 when it should have leveled out to zero with this you would takeoff 10,500 of the total making it equal to the amount you would make from separating the costs.
Love the theories keep it up.
As an accountant, this episode brings me joy because it helps many people understand basic accounting functions with topical examples. Excellent job!
I completly agree with you, Quinn :) I make theories myself and I appreciate it that MatPat explains the functions to everyone :)
“Well your a nerd!”
OMG...............
ua-cam.com/video/FSSFgWlDbJU/v-deo.html
@@heshamkaram5271 no
You forgot another point of fact....you know how every few years, they "renovate" their stores? Yeah, they depreciate their buildings over a period of time and then they invest money into construction costs, which also reduces their cost basis and resets the close on the building depreciation.
This is common....it's also a similar approach to how money launderers work. Pretty hilarious to me, rich people getting richer by doing the same things criminals do, but they don't get in trouble for it.
:)
Mat pat: McDonald’s is NOT a restaurant
Me: It’s a place where you get food
Matpat: It’s a REAL ESTATE company
Me: Yeah that’s what I said...
Very informative. Thank you, Matt. Wish rich companies didn't have these sort of bs tax loopholes when individual people trying to make ends meet have no access to this kind of thing.
Dude, I have learned more about business and real estate than my business academy has taught me. A LITERAL ACADEMY, MADE TO TEACH BUSINESS.
Same
I've literally learned more about business from these videos during these months than from my university for the past 3 years
@@RZDraws it was because academies and schools and stuff were made in the Industrial Age to produce obedient workers,and fsr it hasn’t changed for 200 years
Still can't get over his Coffee video. It's such a cool in-depth analysis. Man, I love this channel.
lol true
Food Theory is wrong by that i mean their calculation for taxes are wron. Even if you make loss in year 1 you can claim that loss in next year to set off your profits i.e. if you make 50,000$ at the end of year 1 it will be setteled with the earnings from Year 2 which is again 50,000$ so at the end of year 2 you will show IRS that you have not made any profit so you are not laible to pay any taxes in 2nd year also but from 3rd year there are no losses and so you have to pay taxes which will end up $31,500 even without depreciation.
The real reason is not that they will save taxes but is something known as "Discounted CashFlow". DCF is why any business shows Depriciation rather than claming all costs at year 1.
I think mat should make a school for teaching us this more then real teachers do 😂
YESSSSS
Yea but he think of a theory and we help him solve it
Maybe that is the problem of your educational system.
Agreed
If you're learning more from a UA-cam video, then your educational system needs to change.
I love how instead of calling us "guys" like most UA-camrs, he calls us "friends."
OMG..............
ua-cam.com/video/FSSFgWlDbJU/v-deo.html
Who would’ve guessed that calling someone a friend sounds friendlier
And it's gender neutral!
@@heshamkaram5271 ok bro
Basic psychology and marketing tactic. I'm surprised you thought it was subtle e.e
Thanks for uploading at my birthday 🎂
Game Theory: McDonalds isn’t real
Matpat: pretty sure it is
Lol
Mat:“I know McDonalds! YOU know McDonalds!”
Me: Wait for it…
Mat: “OR DO WE?!”
Me: THERE IT IS!
“Having multiple revenue streams is smart business”
That was a perfect place for a reference about the expanding theory channels
I worked at McDonald's 12 years ago in Knoxville, TN and it was actually a very good place. Although I only get started out at $7.25 and ended at $8.50 an hour. But I've ate and been to so many messed up McDonald's in my life. I was at one that a person got stabbed at, many fights broke out on a lot of them, some of them were dirty, etc.
Isn't Revenue money the same as Gross Income?
Everyone: Matpat is my teacher
Matpat: today we will talk about tax avoidance
Lol if he really was a teacher you know he’d be fired on his 1st day lol
Tax evasion is a crime, what they are doing is 100% legal. However imo bonuses should come after the company being taxed, not before, esp higher ups.
It's tax avoidance, not evasion. It's legal.
@@starfireseraphim9696 thats not political
@@michelleellison6284 There is something called TAX EVASION which IS ILLEGAL
This was recommended to me just after I got McDonald’s. I’m not sure how-
location history if you have a phone
UA-cam is stalking you lol
GOOGLE IS ALWAYS WATCHING
The algorithm knows - it's always watching. Beware.
I just had McDonald’s twice and I got recommended this vid. 😳
The Thumbnail: McDonald’s is not a restaurant
All of us: You’re right
Matpat: Oh great y’all actually understood!
All of us: It’s a Fast Food Resturant
Matpat:*Facepalm*
fAcEpAlM
Just what I was thinking
yeah, thats pretty much what i thought at first. i always thought it was weird how certain mcdonalds locations were 'owened' by certain companies and my frozen mcchicken wasnt longmont's problem since i bought it 3 miles north of them. left me really bitter.
*Facepalm*
Napalm-faceplam
I’m kinda planning to be an accountant and I feel that this video saved me significant amounts of work in college.
Teacher: "What is the meaning of theory?"
Me: *Mat Pat*
I said that in my Science class and my teacher was confused AF XD
Me: FOOD THEORY
Bruh
@@gavinbargo2091 yes
Savage
When I apply to McDonalds, I’m putting, “Watched this episode of Food Theory” on my resumé.
Absolute Madlad
In this episode of absolute mad lads, Marshall Hester..... the butcher of resumes.
what will they do??? either not hire you or hire you
Matpat in 2069: soup is a noble gas
But seriously give this man some love he makes some of the best videos in youtube today.
2069
Nice
Absolutely???
@@youraveragetheatrenerd2833 very
OMG........
ua-cam.com/video/FSSFgWlDbJU/v-deo.html
@@heshamkaram5271 wow i didn't know bots could reply
I'm glad to have known the crazy fact about McDonalds being more of a real estate company than a restaurant a couple of years back because of the film 'The Founder'. And yes, it is a really good film! I actually watch it at least twice a year just because of how good the story and performances are. 😀
Matpat learns that McDonalds is a real estate company
Me who watch the founder: I am 4 parallel universes ahead of you
McDonalds: Oh the food, that's just my side piece.
I like some of the stuff they have there, but even I'll question if it's actually food. Not everything that tastes good is food. (I am not going to be more specific.)
And their biggest money maker is…soda pop.
@@LadyOnikara So you have a problem with my food?
@@ronaldmcdonald7843 Nah, I was talking about a Happy Meal toy I got last summer. Tasted good, but not food.
@@LadyOnikara Kid you aren't supposed to eat the toy. You know what nevermind.
I know it's a bit obvious but: "It's free real estate"
You mean: "It's free real Mcstate"
Oh my god
MCflurrious was so bad it’s good
Mcit's mcfree mcreal mcstate
@@cheese8658 lol
My mom is an accountant and talks about these things all the time. You finally made her blabbering make sense!
“McDonald’s isn’t a restaurant”
Me clicks video: “No Duh, it’s a fast food restaurant”
Me Now: “Oh wait-“
Saaame
Ikr
I legit said “It’s a fast food place-"
McRealstate
OMG..............
ua-cam.com/video/FSSFgWlDbJU/v-deo.html
Someone bring Nux here, pretty sure he’s gonna have a good laugh after this.
Pretty sure :)
Billy!!!!!!
Nux Taku? Lord Nuxanor?
go away classroom clowns
Oi oi
I need to sit down and really listen to this. It's incredible :D
Yeah
Yup it is.
You must have read Rich Dad, Poor Dad, by Robert Kiyosaki. In the book, he talks about Ray Kroc addressing an MBA class graduate class, wherehe asks, "What business am I in?" A graduate responds, "The hamburger business!" Kroc then responds, "No, I'm in the real estate business." It's one of my favorite books, and it was like you took this right out of it 😂👌🏻 10/10
"McDonalds's is NOT a restaurant"
Me: wait no it's a gambling facility right?
yea it is man u never been there or something?
@@infernal9505 yes
Maybe you get a girl toy in your happy meal😳
@Yan Aks you don't call the place fast food you call the food that if you were to call it something it'd be a fast food restaurant
Me: [jokes about a conspiracy theory channel]
Matpat: *Yes.*
YAAAY
I mean, if u slow down the video to 0.25x then play it frame by frame, he already mas made the channel pfp for it, so its gonna be a 100% new channel
@@mondee_gaming yaaaay
I would be SO down, and yeah the photo's already there
But... But what about book theory?... :'-(
I just love the fact there’s McUFO in Roswell. Even aliens love Big Macs. Seriously they really go all out at some of their restaurants. Like a Georgian style McMansion on Long Island or a DC3 in New Zealand. They try their best to attract tourists while also pleasing the locals
Avery the Cuban-American is there a Mcboat or Mcplane just wondering
@@Voidrune They have a abandoned McBarge, and a McDC-3 in I think New Zealand.
Seen you in like 10 different videos now
@@williamb5495 I am always around.
I see you a lot on CaptainSparklez’s vids
I LOVE how this channel in general (specifically the values of the pizza, chips and soda vodeos) teaches you stuff you actually use in life **cough poetry cough**
they teach you poetry and make you analyze it so you learn critical thinking skills
This was probably my favorite theory episode. I know this was all about how Mcdonald's isn't a restaurant but I started a 3D printing business this year and my goodness this was incredibly helpful just to hear and watch. I played through it a few times to try and make it stick. Some people may see these business practices as sleezy but really the government is kind of trash so it's just all about how you play the game. Matpat, this was so useful for me to watch. I really feel like the stuff outlined here can benefit my business greatly. I've been worried about taxes since I just started this business of mine but I feel like I can make it through.
Thank you Matpat and all his editors for making this visually pleasing and incredibly informative.
Also, I kinda want the fourth theory channel to be a business theory channel now
Everyone: *ugh the ice cream machine is broken again!*
Me: **Laughs in always fixed ice cream machine**
Me: *Laughs in gets ice cream from Sonic instead*
*laughs in baskin robins*
*Laughs in making own ice-cream*
*sighs in lazy*
Me: *Laughs in getting blizzards at Dairy Queen*
Mom: what did you learn today
Me: McDonald’s is a real estate company!
Mom:
Edit: tysm for the likes!
Challenge: do a theory about dragonfruit.
No real reason. I'm just eating one right now, thinking about how little I know about it.
Maybe it could be about why they're in every big brand grocery store I've ever been to, with a huge section to themselves, despite being really weird, practically tasteless, and barely being bought at all. I'm always wondering about that.
@@isaacsiao7673 why did you comment that on my comment he probably won’t see it now.
Mom:That's correct hunny
I new this because “The Founder”
Well, that is true from a certain point view. Seriously.
9:00 Actually, businesses can carry over losses to future years. So on year 2, they get to deduct the remaining $50,000 loss from year 1, leaving them with $0 in taxes in year 2 too. In fact, amortization is almost always NOT the way to go due to opportunity costs, so accountants usually deduct expenses right away in a lump sum whenever possible.
I don't think in his scenario he counted for opportunity costs, he basically assumed the future there.
Matpat: talks about taxes*
Me still a young teen: odin has left us
Me a 13 year old: I like your funny words magic man
Anyone else bugged by the McDonalds restaurants spreading “out from California” popped up in the animation east to west, instead of west to east?
No?
Just me?
Mats from the East Cost, so you know, that bias, lol
Yeah I noticed the same
@@Adones09 Wait, isn't he from Ohio?
If you watched "The Founder" you saw this coming.
Im 20 seconds into the video, thats what im thinking this is gonna be about
@@coreyantonacci9620 exactly
Hello everyone , hope you are having a great day
Here’s your chance to for fill a random act of kindness
I’ve been streaming daily and uploading extremely often on an attempt to try and get 1k subscribers
I’m struggling quite hard right now and any support is appreciated , and I understand people hate comments like this but I need some support😉
No fast food joint is a restaurant, they are low-key food distribution centers, the customers that go there take the food and go, the front lobby where the tables are is a cafeteria/mess hall for workers when they're on a lunch break.
How to speak McDonalds:
Put “Mc” at the beginning of your words.
McI Mcspeak McMcDonalds
Mcthanks
Mcduh
McFinished
McWow McCool McLanguage McThere, McHey McThis McIs McHurting McMy McBrain
School: mitochondria is the powerhouse of the cell.
Students: ok... but how do I pay taxes?
Schools: you don't need to know that.
Food Theory: I got you homie.
Hello everyone , hope you are having a great day
Here’s your chance to for fill a random act of kindness
I’ve been streaming daily and uploading extremely often on an attempt to try and get 1k subscribers
I’m struggling quite hard right now and any support is appreciated , and I understand people hate comments like this but I need some support😉
I'm more and more convinced MatPat is either an An-Cap or a Libertarian.
"How do I pay taxes!?" Go down to the tax collector stoopid
GN 0000 So true on so many levels
@AppleJuice did you see the burger king one? He seems a lot more sympathetic to multinational corporations than Howie Hawkins.
Channel 4: "Political Theory"
feat. JREG
“This place is stinky”
BUILDING INSTANTLY EXPLODES
Johnny Harris has a video on why the McDonalds ice cream machines are always broken, and it has a lot to do with the fact that these stores are individual franchises. Would love to see MatPat's take on it.