Pay Less For Franchising Companies

BlueMauMau:

Mad Money’s investment guru and founder of The Street, Jim Cramer, says: “Generally, we pay less for companies that rely on franchises to drive growth because franchising can really limit your upside.”

He’s comparing the Price to Earnings ratio of three restaurant chains. Chipotle owns 100 percent of its restaurants, Panera owns about half and franchises the other half, and Buffalo Wild Wings is only 35 percent company owned and 65 percent franchised.

Read the full article here.

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