Analysis of McDonald's share price

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Among the big names of the American companies quoted on the stock markets is that of McDonald's. This company’s shares look to have a golden future and are very appealing to investors that wish to speculate on them, promising future profits, especially over the short term. This is the case with the largest fast food chain in the world, McDonalds, which still sells its shares on the stock markets thereby enabling numerous investors to trade in this share price through stock market speculation. This is what we shall investigate today with some relevant information on the company and its pole position on the American, and world market.  

Elements that can influence the price of this asset:

Analysis N°1

The development of home delivery services for the group's restaurants, which could boost sales.

Analysis N°2

The development of healthier menus and products such as vegetarian menus in some countries with different eating habits.

Analysis N°3

The development of competition with the increasingly important export of American fast-food chains to the rest of the world, but also the new fast food brands that can significantly reduce the American giant's market share in the long term.

Analysis N°4

We will also monitor the evolution of food hygiene awareness campaigns and changes in consumer habits, as more and more consumers turn away from this type of restaurant.

Analysis N°5

Due to the international nature of Mc Donald's operations, we will also closely monitor the global economic situation, which can have a direct impact on sales, particularly during periods of severe economic recession.

Analysis N°6

Finally, we will also keep an eye on the evolution of regulations on the part of food and health control agencies, which can again affect Mc Donald's sales or place it at the centre of scandals or high-profile cases.

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A brief history of the McDonald's Company:

The McDonald's Company is much older than you may think as it was actually founded in 1950 by an American businessman, Ray Croc. It started as a simple franchise but Mr. Kroc quickly decided to buy the rights to the main company from the McDonald brothers. That was the humble beginnings of McDonald's, the largest international fast food chain. 

Although McDonald's started in the United States it became an international chain at the beginning of the 70s. One interesting point, after the United States, France is actually the country where McDonald's makes its biggest profits with no less than 1,100 franchised restaurants including a huge and well known restaurant on the famous Champs Elysees, a true symbol of McDonald's success in the country famous for its culinary reputation.


Activity and turnover division summary of the McDonald's Company: 

The McDonald's Company can boast a considerable turnover due to its major activities which fall into two sectors as follows: 

It is important to note that McDonald's also holds major holdings in other big name fast food chains such as ‘Prêt à manger ‘ which, despite its name is actually an English chain. 

The total annual turnover of the McDonald's Company reaches to over $22.74 billion and its resulting annual income is around $5 billion. 

The largest part of its turnover is generated in the United States with 39% of total receipts compared with 10% for Europe and 10% in Asia. However this achievement is even more astounding when it is taken into account that on its home ground it faces competition from brands such as Burger King, KFC or Yum.


Quotes and values for the McDonald's shares: 

McDonald's shares are quoted on the NYSE (New York Stock Exchange) and are taken into account in the calculations of the major American Index, the Dow Jones.  

Historically, the shares of this fast food company experienced a rapid rise up to 2008, the beginning of the global financial crisis. However, since 2009 the company has managed to compensate for its losses and the shares started rising again.

Frequently Asked Questions

Who are the major shareholders of McDonalds capital?

At this time the McDonalds capital is mainly divided among various major private shareholders including The Vanguard Group which holds 8.7%, Capital Research with 5.77%, SSgA Funds Management with 5.21%, Fidelity Management & Research with 2.62%, BlackRock Fund Advisors with 2.55%, T Rowe Price Associates with 2.18%, Wellington Management with 2.08%, Putnam with 1.70%, Northern Trust Investments with 1.54% and Geode Capital management with 1.54%. The remainder of this group’s capital is floating and therefore traded freely on the stock markets.        

Whereabouts is McDonalds present worldwide?

The McDonalds Group, as a multinational company, is present in over 119 different countries throughout the world. It operates around 36,258 fast food branches under the McDonalds brand including 7,855 in Europe and 14,350 in the United States. The group also possesses subsidiaries in which it holds at least a part of the capital. These notably include the brands Aroma Café, Boston Market, Xhipotle Mexican Grill, Donatos Pizza and also Prêt à Manger.        

What is the BigMac Index?

You probably do not know that in 1986 the Economist magazine invented a BigMac Index with the objective of estimating the standard of living in the countries where the McDonalds Group was present.  This particular product which is sold by the company in all the countries where it is present therefore enables the calculation of the estimated purchasing power of a country’s population by its price. Only one country is not included, India, as McDonalds does not sell beef products there.

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