McDonald's: hated by many, but still hugely successful. Investing in this large fast-food chain can therefore work out well. But how can you buy McDonald's shares and what is the current share price of the company? In this article you can read everything you need to know for an investment in this company.
How can you actively invest in McDonald's shares?
McDonald's is one of those brands that everyone knows. Some people love it while others prefer to steer clear of it. As an investor, even if you find McDonald's gross, you can achieve a good return by actively trading the shares. When you actively speculate on the price, you can achieve a positive result both at falling and rising prices.
One of the better parties where you can speculate in McDonald's stock is Plus500. You do this by using CFDs. With the button below, you can open an account directly with Plus500:
How to buy McDonald's shares?
The concept of McDonald's is brilliant: they do not just make money by selling hamburgers. Because the franchisees pay rent to McDonald's for the used land, the company receives a steady income. In addition, this allows the company to maintain control over the quality of the products.
An investment in McDonald's can therefore be a good idea. This is best done at eToro. At eToro you do not pay commissions when you buy shares. This allows you to achieve a good result even with a small deposit. With the button below, you can open a free account with eToro immediately:
Is it smart to invest in McDonald's?
McDonald's has a brilliant concept. Almost everyone thinks the company makes money from selling hamburgers, when in fact a large portion of the revenue comes in through rental income. Real estate is quite stable in value and often rises along with inflation. This will allow McDonald's to continue to do well in the future.
Of course, the brand must remain attractive enough. This is done by introducing new products that can attract new groups of visitors. For example, they have introduced various breakfast options that allow the establishments to make a profit in the morning. They have also introduced various vegetarian and healthy options that can attract the more health conscious customers.
It is important to compare the company's performance with the performance of other fast-food chains before you invest money in McDonald's. Burger King and KFC, for example, are well-known competitors of the chain. Investigate whether it might be more attractive to invest in one of these alternatives.
How to buy McDonald's shares in 4 steps
Investing in McDonald's is easy! With these four steps, you will own one or more McDonald's shares within an hour.
Step 1: Before you can buy shares, you need an account with a broker. A broker is a company where you can trade in shares. Click here to compare the best parties.
Step 2: After you open an account and deposit money, you can find the right share within the software. Then you must decide how many shares you want to buy.
Step 3: You can buy the shares at the current price with a market order. It is also possible to buy the shares only when a certain price is reached by using a limit order.
Step 4: Evaluate your investment regularly and see if the company is doing well compared to the competition. Consider when it is time to say goodbye to your McDonald's stock.
About McDonald's, the company
The American company McDonald's Corporation was founded in 1940. At that time, the company was the restaurant of Richard and Maurice McDonald. The restaurant was located in San Bernardino, California. The restaurant was transformed into a burger joint that excelled in terms of efficiency. Subsequently, the company became a franchise which allowed more branches to open quickly.
McDonald's Golden Archer logo was introduced in 1953. The businessman Ray Crock became the company's franchise agent in 1953. He decided to buy the hamburger joints from the two brothers. The company's headquarters were initially located in Oak Brook, Illinois. In 2018, McDonald's global headquarters was moved to Chicago.
Are you curious about the McDonald's history? Then I can recommend the film The Founder in which you can see how Ray Crock deviously takes the company away from the two brothers.
The Largest restaurant chain in the world
McDonald's is a big company. Based on turnover, it is even the largest restaurant chain in the world. The company has 37,855 outlets located in 100 different countries in 2018. The company serves more than 69 million customers daily.
At McDonald's, these customers can not only buy the well-known burgers, cheeseburgers, and French fries. The company also sells breakfast products, chicken products, milkshakes, wraps, desserts, and soft drinks. In order to meet the demand for healthy food smoothies, fish, salads, and fruit have been added to the menu.
With these new options, the company hopes to appeal to a new customer segment. Do you think this will work? Then buying McDonald's shares can be interesting.
The company has two sources of income. Of course, sales in the restaurants managed by McDonald's Corporation generate income. Another important source of income is the rent, royalties, and fees to be paid by the franchisees. Because of its many franchisees, McDonald's is one of the largest private employers in the world.
McDonald's business model
The land on which the restaurants are located is owned by McDonald's. The value of this land is estimated at 6 to 8 billion dollars. A significant part of their income, as mentioned earlier, is the rental payments of the franchisees. These rent payments were increased by 50% between 2010 and 2015. In fact, McDonald's is also a real estate company: Their money is not earned from hamburgers, but from land.
In the United Kingdom and Ireland, the company operates differently. In those countries, less than 30% of restaurants are franchised. Most restaurants there are owned by the company.
Working at McDonald's
In the United States, franchisees and management are trained at Hamburger University. The university is located at its headquarters in Chicago. McDonald's considers the health of its employees important. By singing along with their favourite songs, the employees can reduce stress. And bt attending church services, they lower their blood pressure. By going on holiday twice a year, they reduce their risk of heart disease.
However, whether attending church and taking holidays protects them from their food is very much the question. McDonald's therefore suffers from a negative image and is often blamed for the high prevalence of obesity in America.
How the company deals with its unhealthy image
The documentary Super Size Me shows that for only eating Big Macs, cheeseburgers, and French fries is not healthy. McDonald's took action in response to that documentary. For example, meal salads were added to the range of products. Soon, even dishes with kale will be offered.
Do you think these healthy products are going to have a positive effect on McDonald's business results? Then it might be interesting to buy McDonald's shares.