McDonald's scarcely needs introduction – as the oldest American fast food chain, the brand is represented in over 100 countries and is considered one of the most popular restaurants in the world. The McDonald’s menu – for those who might be unfamiliar with it – includes hamburgers, fries, chicken nuggets, salads, ice-creams and many more fast food products.
Over 80% of McDonald's restaurants across the globe are franchises, managed by independent entrepreneurs. Their revenue is derived from royalties, the fees from the franchises and from the sales themselves.
Steve Easterbrook has been President and Chief Executive Officer of McDonald’s since 2015. He first joined the company back in 1993 as a Financial Reporting Manager in London. Another key figure at McDonald’s is Lucy Brady (Senior Vice President, Corporate Strategy and Business Development). Silvia Lagnado is Executive Vice President and Global Chief Marketing Officer; and Kevin Ozan is Executive Vice President and Chief Financial Officer.
Founded in the 1940sby Richard and Maurice McDonald, the business has grown from a single hamburger restaurant in San Bernardino, California, to the world’s largest restaurant chain by revenue. McDonald’s IPO price in 1965 was $22.50 a share. By one estimate, 100 of those shares would be worth over $8 million nowadays.
The company started expanding internationally in 1967, when it opened in Canada and Puerto Rico. In 1990 McDonald’s opened its first restaurant in Moscow, and in 1993 the first McCafé opened its doors in Melbourne, Australia. The famous “I’m lovin’ it” global ad campaign was launched in 2003.
In March 2017, McDonald’s introduced its Velocity Growth Plan, a growth strategy based around three so-called “accelerators”: digital, delivery, and elevation of the customer experience. The aim is to retain existing customers, regain those the business has lost, and convert casual visitors into more committed customers with coffee and snacks.
In 2017, McDonald’s achieved its best comparable sales performance in six years and gained share in markets around the world. In its full year financial results, the company reported global comparable sales up 5.3%; consolidated operating income up 23%; and diluted earnings per share up 17% on 2016. The Board of Directors declared a quarterly cash dividend of $1.01 per share of common stock.
In January 2018, McDonald’s introduced a new $1, $2 and $3 value menu in its U.S. outlets. The move came as the company fought a price war with rivals including Yum Brands' Taco Bell and Dunkin' Brands Group. But some analysts weren’t impressed by early sales figures, and RBC Capital Markets reduced its earnings estimates for McDonald's shares in March 2018.
The McDonald's share price, which reached an all-time high of $178 in January 2018, fell back to $150-$160 in March as sentiment turned less positive. To find out how the shares are doing right now, follow Capital.com. Our MCD chart puts all the information at your fingertips.
McDonald’s has a truly global presence, with a total of some 36,000 restaurants across North and South America, Europe and the Asia-Pacific region. In the Middle East it has branches in Israel, Lebanon and Saudi Arabia; and in Africa there are McDonald’s restaurants in Morocco, Tunisia, Egypt and South Africa.
McDonald's shares are listed on the New York Stock Exchange (NYSE) and are a constituent of the Dow Jones Industrial Average, the S&P 100 and S&P 500 indices. Check out Capital.com for the latest MCD chart. We’ll keep you up to date and in the picture.
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