McDonald’s

About McDonald's Corporation

McDonald's Corporation stock gives you exposure to the world's most valuable fast-food brand. Operating at more than 38,000 locations in 100 countries, McDonald's is world-renowned for its global chain of restaurants, offering signature dishes such as the Big Mac, Fillet-O-Fish and Chicken McNuggets. Yet what's less known is that it's also a real estate company, owning or leasing the land or building at each restaurant location. The corporation's revenue consists of not just restaurant sales but also rent, royalties and fees from franchisees.

In 1940, brothers Richard and Maurice McDonald opened the first McDonald's restaurant in San Bernardino, California. They streamlined operations and eight years later introduced the Speedee Service System designed to produce large quantities of food at low prices. Food was cooked ahead of time, wrapped, and kept warm under heat lamps, meaning customers received their food in a fraction of the time it would take in a conventional restaurant.

The McDonald brothers were bought out by Ray Kroc in 1961 for $2.7 million under McDonald's Systems, Inc., the predecessor to McDonald's Corporation. Originally a franchise agent for the brothers, Kroc saw the great promise in the McDonald's concept and wanted to expand it across the United States. The franchise went global six years later, with restaurants opening in Canada and Puerto Rico in 1967. The brand is still expanding to this day under the leadership of current CEO Chris Kempczinski, with plans to open 1,900 new locations in 2023; its largest growth since 2014.

How has McDonald's Corporation performed recently?

In its 2022 annual report, McDonald's Corporation announced total revenues of $23.1 billion, as well as net income of $6.1 billion – the latter, a YOY decrease of 18%. This translated to $8.33 in earnings per common share, down 17% from 2021. At the end of Q2 2023, the company reported net income of $4.1 billion on top of revenue of $12.3 billion – increases of 79% and 9% respectively.

In October 2023, McDonald's Board of Directors announced a quarterly cash dividend of $1.67 per share of common stock payable in December 2023, equivalent to $6.68 annually. This amount represents a 10% increase over the previous quarter, continuing a history of raising the dividend per share payable on MCD stock since the company began paying dividends in 1976.

MCD stock price history

McDonald's Corp stock began trading publicly in 1965 on the New York Stock Exchange, under the ticker symbol 'MCD'. Since then, the stock has shown strong growth over the past 20 years, beating the S&P 500's return more than twice over.

Yet that doesn't mean MCD shares haven't experienced price fluctuations, most notably in early 2020. The COVID pandemic had a big impact on McDonald's Corp revenue, especially in the international market. Stock prices took a sharp dive from $215 in February 2020, going as low as $148 and not recovering until August that year.

Growth has been turbulent since then, with McDonald's share prices experiencing significant declines in February and September 2022, largely stemming from investor concerns regarding rising costs and potential consequences for the company's performance.

McDonald's Corp stock rallied in March 2023 despite these setbacks, even reaching an all-time high of $298 in June 2023. However, market conditions turned around quickly, leading to a big fall to $248 as of October.

What affects McDonald's share prices?

Like all stocks, MCD stock prices are influenced by a wide range of factors. Understand and monitor the key drivers to better identify and seize opportunities.

• Global events: Worldwide conditions such as pandemics and recessions can have an impact on McDonald's Corporation share prices – and the wider stock market.
• Economic conditions: Factors such as inflation and interest rates in the markets McDonald's operates in can influence its bottom line, and therefore its stock prices.
• Market sentiment: Investors' confidence in McDonald's Corp plays an important role in driving its share prices. Positive breaking news regarding the company can boost confidence and lift prices, while negative news can have a detrimental effect.
• Company performance: McDonald's Corporation releases its financial reports every quarter, giving insight into key performance indicators such as revenue, expenses and income. Major shifts can have a big impact on MCD stock prices, especially soon after the reports are published.

How to invest in McDonald's stock

Buy McDonald's stock directly

Purchase MCD stock on our platform to take ownership of a stake in the company's future performance. Open a Tradu account, add funds and select how much you want to buy.

With this method of investing in McDonald's stock, you have the option to hold shares with the expectation that their price will rise or sell them for a profit whenever you sense an opportunity. It suits a longer timeframe, which will give you more opportunity to profit from rising markets.

Trade with derivatives

Alternatively, you can speculate on MCD stock price movements using financial derivatives such as contracts for difference (CFDs). With CFDs, you speculate on the future price of a stock and commit to exchange the difference between the opening and closing prices.

Trading derivatives allows you to profit from McDonald's share price movements without owning the underlying stock. You can trade in either direction, profiting from bearish as well as bullish markets. You can also use leverage to magnify your potential for profits and losses, allowing you to do more with smaller deposits.

Is MCD a good stock to buy?

Pros of investing in McDonald's stock

• Market leader: MCD stock lets you profit from the performance of the biggest player in the fast-food industry. Featured on indices such as the , it also gives you significant exposure to wider markets.
• Good coverage: McDonald's receives significant coverage in the media thanks to its worldwide reputation, helping you to stay on top of breaking news that could affect MCD share prices. The company also publishes its financial reports every quarter, making it easier for you to conduct fundamental analysis.
• Resilience: McDonald's has one of the best value menus in the restaurant industry, meaning its sales aren't likely to suffer even during a recession. This has led some analysts to claim it's resilient to recession – which McDonald's increased share prices and total revenues backed up during the 2008 financial crash.
• High liquidity: High demand for McDonald's Corp stock makes it quick and efficient to trade.
• Trading options: Choose the trading method you prefer, either investing in McDonald's stock over the long term or speculating on short-term price changes using derivatives.
• Market volatility: Frequent rises and falls in prices can be of benefit to a short-term strategy, providing savvy traders with opportunities to profit while trading in either direction.

Cons of investing in McDonald's stock

• Market volatility: As explained above, the MCD share price is vulnerable to a wide range of factors. While in-depth analysis can help you foresee some price movements, the market will always be somewhat unpredictable.
• Leverage risk with derivatives: Trading on a margin can increase your risks, potentially amplifying your losses rather than your profits. You'll need to stick to ratios you're comfortable with and employ risk management strategies to better protect yourself.
• Low diversification: It can be useful to have large-cap stocks like MCD in your portfolio, yet it's unwise to rely on them alone. To hedge against unnecessary risk, you'll need to diversify with mid- and small-cap stocks, as well as assets from other classes.

How to start investing in McDonald's stock with Tradu

1. Open your Tradu account. Create an account online and deposit funds to trade or invest with.
2. Devise your strategy. Set your goals and choose how to invest in McDonald's stock based on your capital, timeframe and risk tolerance.
3. Study the market. Forecast MCD stock price movements using our live charts and intuitive analysis tools.
4. Take your first position. Buy and hold McDonald's Corp stock to profit from growth or use derivatives to speculate on price changes in either direction.
5. Diversify your portfolio. Access thousands of assets from your Tradu account, spreading your exposure and hedging against risk.