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How to Buy McDonald’s Stock Now, Forecast and Dividend Guide

November 25, 2021 12:58 PM

Are you thinking of buying McDonald’s stock? In this guide, you will learn how to invest in McDonald’s shares and discover price history and forecasts, analyst outlooks and dividend information to help make your investment decision!

McDonald’s Overview

McDonald’s is an American fast-food restaurant chain founded in 1940 by two brothers, Maurice and Richard McDonald, in San Bernardino, California. In 1955, the restaurant chain began a franchising business model which enabled rapid expansion throughout the United States and worldwide.

The company has grown exponentially over the years, with more than 39,000 locations across 119 countries. The company generates billions of dollars in revenue each year by selling hamburgers, French fries, chicken nuggets and soft drinks to millions of customers through its restaurants, delivery service and drive-through service.

According to international marketing agency Kantar, McDonald’s is the most valuable brand in the food and beverage sector. But before risking your money, you should thoroughly understand McDonald’s business activities to know how the company makes a profit, potential risks facing the business model, share price history, past performance, future outlooks, analyst predictions, dividend schedule, and earning potential.

McDonald’s Stock | MCD Chart, Forecast and How to Invest

McDonald’s Stock Historical Price

McDonald’s initial public offering occurred on the 21st of April 1965, and shares were offered for $22.50 per share. In the first week of trading, shares opened at $22.50, and by the end of April, they had risen to $29.00 before settling down to around $24.00 in May 1965.

Since the McDonald’s IPO, the company stock has fluctuated considerably, but share prices never dropped below the IPO price but sometimes exceeded it significantly. McDonald’s stock history price reached an all-time high of $247.05 on the 27th of July 2021, a 15.2% increase on the opening price on the first trading day of 2021.

Year Opening price $ Gain %
FY 2010 $62.63 22.5%
FY 2011 $77.10 30.1%
FY 2012 $101.33 (12.95%)
FY 2013 $87.42 7.6%
FY 2014 $96.81 (3.2%)
FY 2015 $96.15 25.5%
FY 2016 $117.25 3.8%
FY 2017 $121.86 41.2%
FY 2018 $173.73 2.2%
FY 2019 $175.41 12.7%
FY 2020 $198 8.4%

McDonald’s shares closed the month of August 2021 at $237.49. Looking back 12 months, that’s a gain of 22.2% and looking back to the start of 2020, that’s a gain of 20%.The table below shows how McDonald’s stock performed based on historical prices for the past eleven years. Based on the historical McDonald’s stock performance, the share price has grown on average 12.5% annually for the past eleven years.

Why Invest in McDonald’s Shares? Points to Consider

A key question for anyone considering investing in McDonald's stock is why invest in McDonald’s now? One reason to buy McDonald's shares today may be its strong brand and leadership position in the quick-service restaurant industry and focus on providing customers with a premium experience. In addition, the company continues to make strategic decisions that are designed to increase profitability while also maintaining its financial health. McDonald's offers a dividend yield of 2.1%.

For anyone considering investing in McDonald's stock, here are some points to consider:

  • Does the company have sufficient cash reserves?
  • Is the stock price reasonable and affordable?
  • Is it expected to increase in value over time?
  • How much can you earn from dividends payments?

McDonald’s stock fundamentals summary

  • McDonald's Corporation is listed on the New York Stock Exchange and traded under the ticker symbol MCD.
  • McDonald’s stock is a constituent of the popular S&P 500 and Dow Jones Industrial Average indices.
  • McDonald’s revenue in 2020 was $19.21 billion, and net income was $4.73 billion, despite the COVID-19 pandemic.
  • As of the 1st of September 2021, McDonald’s market cap was $177.85 billion.
  • McDonald’s has executed 12 stock splits since the initial public offering on the 21st of April 1965.
  • Per the Q2 2021 investor report, McDonald’s price-to-sales ratio was 7.99, and the price-to-earnings ratio was 25.16.
  • McDonald’s dividends for 2021 are $5.16 per share, making the dividend yield 2.1%.
  • The current average daily trading volume of MCD shares on the NYSE is 2.3 million shares.

McDonald’s business model

The McDonald's Corporation (NYSE: MCD) is a world-renowned multinational fast-food company that has built its brand on serving affordable, quick-service food and beverage items. The company has faced some challenges in recent years, including but not limited to the COVID-19 pandemic, wage disputes with its employees and lower sales revenue due to "healthy" eating trends that are on the rise.

Regardless of these challenges, McDonald's is still one of the world's most recognisable brands today. Their strategy for growth is through franchising its business model while maintaining ownership over key parts of the process, such as developing the fast-food restaurant concept.

McDonald's has always been a go-to for Americans when it comes to finding low prices and convenience. It is one of the top ten most profitable businesses in America today, with worldwide revenue totalling $20 billion annually. The company directly employs 200,000 people worldwide, and various reports suggest 1.7 million works for the brand indirectly through franchise-operated venues.

McDonald’s Stock Dividend Information

McDonald’s stock dividend information is important to consider when thinking about buying its stock because dividends provide investors with an income stream or steady flow of cash from their investment.

Since the 1st of December 2021, McDonald’s dividends payments were increased to $5.16 per share, making the dividend yield 2.1%. McDonald’s dividends are paid to shareholders in quarterly payments of $1.29 per share.

McDonald’s dividend history

The table below shows the past five years of McDonald’s shares dividend payments to shareholders.

Declare Date Amount Yield Frequency Pay Date
23/07/2021 $1.29 2.20% Quarter 15/09/2021
8/10/2020 $1.29 2.40% Quarter 15/12/2020
22/05/2020 $1.25 2.70% Quarter 15/06/2020
20/09/2019 $1.25 2.60% Quarter 16/12/2019
19/07/2019 $1.16 2.10% Quarter 17/09/2019
24/05/2019 $1.16 2.30% Quarter 17/06/2019
21/09/2018 $1.16 2.50% Quarter 17/12/2018
19/07/2018 $1.01 2.50% Quarter 18/09/2018
25/01/2018 $1.01 2.60% Quarter 15/03/2018
21/09/2017 $1.01 2.30% Quarter 15/12/2017
26/01/2017 $0.94 3% Quarter 15/03/2017
29/09/2016 $0.94 3.10% Quarter 15/12/2016
26/05/2016 $0.89 2.90% Quarter 20/06/2016
27/01/2016 $0.89 3% Quarter 15/03/2016

McDonald’s Stock Forecast and Prediction

Every quarter, analysts from top hedge funds, investment banks and research companies offer their outlook on the stock market. The McDonald’s stock forecast is considered positive by analysts, with most analysts offering a bullish rating.

  • Robert W. Baird analyst David Tarantino maintained a buy rating on MCD stock but did not specify a price target for McDonald’s stock.
  • Morgan Stanley analyst John Glass maintained an overweight rating on MCD stock and raised the bank’s price target to $266.00 (from $259.00).
  • RBC Capital analyst Christopher Carril maintained an outperform rating on MCD stock and raised the company’s price target to $268 (from $263.00).

McDonald’s Stock Split History

McDonald’s has performed twelve stock splits in its history and one 2% stock dividend bonus. The most recent MCD stock split took place on the 12th of February 1999, where the stock was split 2-for-1, meaning if you held one MCD share before the split, you’d have two afterwards.

Stock splits are important to consider when evaluating McDonald’s stock price history because it adjusts the cost basis of the shares.

MCD stock split history

  1. 29th of March 1966: MCD stock was split 3-for-2, meaning every shareholder with at least two shares got 50% more shares, providing the number of shares they held was divisible by two.
  2. 7th of May 1968: MCD stock was split 2-for-1.
  3. 23rd of May 1969: MCD stock was split 2-for-1.
  4. 21st of May 1971: MCD stock was split 3-for-2.
  5. 22nd of May 1972: MCD stock was split 2-for-1.
  6. 14th of September 1982: MCD stock was split 3-for-2.
  7. 5th of September 1984: MCD stock was split 3-for-2.
  8. 3rd of June 1986: MCD stock was split 3-for-2.
  9. 8th of June 1987: MCD stock was split 3-for-2.
  10. 2nd of June 1989: MCD stock was split 2-for-1.
  11. 7th of June 1994: MCD stock was split 2-for-1.
  12. 12th of February 1999: MCD stock was split 2-for-1.

McDonald’s Stockholders

The top ten investment firms and funds with McDonald’s stock positions paint a picture of large investment firms’ interest in the company.

Fund Shares % Owned
Vanguard Group Inc 64,935,787 6.57%
State Street Corp 36,057,231 3.65%
Wellington 29,314,528 2.97%
Blackrock Institutional Trust Company, N.A. 22,977,743 2.32%
Blackrock Fund Advisors 16,736,223 1.69%
Bank Of America Corp /De/ 13,157,781 1.33%
Fundsmith Equity Fund, L.P. 12,080,320 1.22%
Geode Capital Management LLC 11,843,468 1.20%
Northern Trust Corp 10,514,810 1.06%
Wells Fargo & Co/Mn 8,786,438 0.89%

Where to Buy McDonald’s Stock

You can trade McDonald’s stock today from anywhere in the world on any device connected to the internet by using the popular MetaTrader 4 platform. All you need to get started is a ZFX trading account.

McDonald’s Stock | MCD Chart, Forecast and How to Invest

ZFX - Analyse and trade McDonald’s shares with real-time price quotes

To trade MCD stock effectively, you need to follow real-time McDonald’s stock quotes. The best way to know how much is McDonald’s stock today is to find the McDonald’s stock price inside a trading platform, such as the MetaTrader 4 platform provided by ZFX.

How to Buy McDonald’s Stock Now

McDonald’s shares are traded on the New York Stock Exchange and listed with the ticker symbol MCD. Although the New York Stock Exchange is a public exchange, only professional brokers and large investment firms can go directly to the exchange. Therefore, you need to work with a broker like ZFX, which lets you trade MCD shares.

To start trading McDonald’s today, just follow these simple steps:

  1. Register with ZFX
  2. Verify your ZFX account
  3. Make your first deposit
  4. Buy McDonald’s stock

Let’s take a look at all of these steps in more detail.

Step 1: Register with ZFX 

Start by accessing ZFX’s homepage. Then, hit the blue icon on the top labeled “Open an account”. On the new page displayed, type in all the required info, including your name, mobile number, email address, verification code sent to your phone, and your password. After typing in all the needed information, hit the “Next” button.

Register with ZFX step 1

On the next page, select the account type you’d prefer and tick the ZFX’s terms and agreements box. Then click on “Sign Up Now” at the bottom. ZFX allows you to access three different types of accounts, namely ECN Account, Standard STP Account, and Mini Account.

Step 2: Make your first deposit  

On the page that displays next, ensure you take note of your MT4 login code and password, then click the “Make a Deposit“ button on the bottom right side.

Make Deposit - McDonald's stock

Step 3: Account Verification   

Account Verification to buy McDonald's stock

Before you can start trading on ZFX, you’ll need to submit your documents for verification. To submit, find the area labeled “Personal Information” from your profile dashboard, and click it. From the dropdown that shows up, click Document Verification, and you’ll be led to a page like the one above.

After submitting your documents, it only takes ZFX one working day to complete the verification.

Step 4: Buy McDonald’s Stock

After completing all the steps above, click the “Download MT4” button at the top (as shown in the image above) and install it to your computer. Subsequently, log in using the details you saved earlier, and start investing in the McDonald’s stock whenever you want. The McDonald’s stock symbol is labeled MCD.

Bottom Line: Should You Buy McDonald’s Stock?

McDonald's has been a leading global foodservice retailer for decades, and it shows no signs of slowing down anytime soon. The company has expanded its digital capabilities through mobile ordering while also opening new restaurants across the globe to strengthen its brand image. In addition, McDonald's offers a dividend yield of 2.1%.

The company also makes up an important part of the Dow Jones Industrial Average (DJIA) which can contribute to major shifts in stock as many funds allocate investments to companies that are part of indices rather than because of the specific companies’ fundamentals.

McDonald’s Stock | MCD Chart, Forecast and How to Invest

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