McDonald’s Stock
View McDonald’s's share price below and learn more about this stock.
McDonald’s stock price
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McDonald's' history
In 1940, Dick and Mac McDonald opened their first McDonald's restaurant in San Bernardino, California. In 1948, the brothers developed the innovative 'Speedee Service System', a conveyor belt-type production system, for their restaurant. They only offered burgers, chips, coffee, soft drinks and apple pie and there was no table service. Customers were encouraged to stay in the restaurant only briefly, ensuring a quick turnaround.
Their system's success encouraged the brothers to take it forward as a franchise formula. The first franchisees opened their restaurants in 1953. And in 1954, Illinois-based Ray Kroc opened his first hamburger restaurant in Des Plaines. Impressed by the fast service and high quality, he suggested opening more businesses. In 1955, he signed a contract with McDonald's in which they stipulated that he could use the concept worldwide. From this, the McDonald's group was born.
Real estate
The empire and profitability grew rapidly, partly because Kroc took control of much of the real estate and land on which the restaurants were located. This provided a stable base of capital and revenue, in addition to the income from operations. McDonald's still uses this model today.
By 1960, the restaurants were already achieving a combined turnover of $56 million. After a conflict with the McDonald brothers over the expansion plans, Kroc bought them out and took the company public. After this, McDonald's quickly became the leading fast-food chain in the US and then worldwide, with Kroc as its CEO.
Big Mac index
The Big Mac, McDonald's most famous hamburger, dates back to 1968. It has been on menus around the world ever since. This standard burger is available in the same composition and with ingredients of similar quality in countries around the world. However, the price differs from country to country. That is why economists have developed the 'Big Mac index', an informal way of calculating purchasing power parity – a comparison of purchasing power between countries.
McDonald's' operations
McDonald's' business model has two tiers: the corporation's own restaurants and the franchises. The franchised restaurants are owned and operated under one of the following structures: conventional franchise, developmental license or affiliate1. The company's takings consist of:
- sales by company-operated restaurants
- fees from restaurants operated by franchisees
- developmental licensees
- affiliates
There are over 38,000 restaurants in over 100 countries around the world. In 2023, 2,000 new restaurants were opened.
McDonald's stock exchange listing
McDonald's (MCD) is listed on the New York Stock Exchange (NYSE), as well as exchanges around the world such as Austria's Wiener Börse and Euronext Milan.
The stock is included in several prominent indexes, such as the Dow Jones, S&P 500, NYSE Top US 100, S&P Global 100 and STOXX Global 150.
McDonald's in numbers
McDonald's has a market capitalisation of around $197 billion (15 August 2024). This makes the corporation a large-cap company. For 2023, the corporation reported total revenues of $25.5 billion, a 10% increase on 2022. Around 41% of the total revenue was earnt in its home market of the USA.
At the end of 2023, the company employed 150,000 people – 70% of which outside its home market – and an additional 2 million were employed by its franchisees.
McDonald's' dividend
The corporation usually issues dividend each quarter (excluding specials). For the 4 quarters from Q3 2023, dividend consistently stood at $1.67 per individual share.
You can find more information in McDonald's' Annual Report 2023.
Past performance is not a reliable indicator of future results.
The information in this article is not written for advisory purposes, nor does it intend to recommend any investments. Please be aware that facts may have changed since the article was originally written. Investing involves risks (e.g., price volatility, currency or liquidity risk). You can lose your invested funds. Consider your knowledge and experience when making investment decisions. Markets are volatile and can fluctuate significantly due to economic, political, regulatory or other developments.
1Under a developmental license or affiliate arrangement, licensees are responsible for operating and managing their businesses, providing capital (including the real estate interest) and developing and opening new restaurants. The company generally does not invest any capital […] and it receives a royalty based on a percent of sales, and generally receives initial fees upon the opening of a new restaurant or grant of a new license. Source: McDonald's 2023 Annual report
Quelle: McDonald's Corporate, MarketWatch, Investing.com, The Strategy Story, Yahoo Finance, Stocklight
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Investing involves risks. You can lose your invested funds. This is not investment advice. Consider your knowledge and experience when making investment decisions.
Investing involves risk of loss.