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McDonald's is suing the Victorian Government over accusations it was short-changed more than $40 million over the sale of its Swanston Street restaurant.
- McDonald's was offered $29.5 million initially, then the offer was increased to $34.2 million
- The company is seeking $70.6 million for the land and lost earnings
- The company had the lease until 2031 and had no intention to sell the site
The site, next to the Young and Jackson pub and 50 metres from Flinders Street railway station, was one of 95 acquired by the State Government as part of the new Metro Tunnel project.
Court documents showed McDonald's was offered $29.5 million in compensation in June 2017 for the land and a loss of business.
Rail Projects Victoria increased the offer to $34.2 million in June this year due to the site's increased market value, but McDonald's still said the offer was inadequate.
The company wants $70.6 million, including $33.7 million for the land and $33.4 million for lost earnings.
The site was one of McDonald's best-performing Melbourne CBD stores and made $7.2 million in food sales in the year to June 2016.
McDonald's provided the court with projections that the figure would increase to $16 million over the next decade.
The company also said it would have made more than $1 million in sales from the first year of its UberEats delivery service, which was set to start in 2017.
The fast food giant bought the Swanston Street premises in 1984 and said it had no intention to sell the site.
The lease at the site was set to run until 2031.
Topics: law-crime-and-justice, business-economics-and-finance, food-and-beverage, rail-transport, melbourne-3000