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Corporate Finance Explained | Lease vs Buy: How Smart Companies Optimize Asset Ownership

This video explains the complexities of lease vs. buy decisions for companies, moving beyond simple cost comparisons to strategic considerations like capital allocation, tax strategy, and risk management. It highlights how a $24 million purchase versus a $480,000 monthly lease involves more than just immediate math, emphasizing the time value of money and opportunity costs.

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MCDBullishHigh ConvictionSignal-backedPrimary

McDonald's real estate ownership strategy, where they own or ground lease most of their franchise locations, is a key driver of their financial success and competitive advantage.

IAGNeutralHigh ConvictionSignal-backedPrimary

Indigo Airlines' entire competitive position is built on leasing rather than owning aircraft, utilizing a sale-leaseback model to generate immediate cash, cap fleet age, and maintain flexibility during demand shocks.

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MCD
buy opened May 21, 2026
-2.75%