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If You Invested $1000 in McDonald's 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in McDonald's (MCD - Free Report) ten years ago? It may not have been easy to hold on to MCD for all that time, but if you did, how much would your investment be worth today?
McDonald's' Business In-Depth
With that in mind, let's take a look at McDonald's' main business drivers.
Founded in 1948, Oak Brook, IL-based McDonald’s is a leading fast-food chain that currently operates more than 39,000 restaurants in more than 100 countries. The company mainly operates and franchises quick-service restaurants (QSRs) under the McDonald’s brand. Nearly 93% of the company’s restaurant worldwide are owned and operated by independent local business men as well as women. The company’s revenues include sales by company-operated restaurants and fees from restaurants, which are managed by franchisees.
The business is managed as a distinct geographic segment.
Beginning Jan 1, 2019, the company had begun operating its results under a new organizational structure.
U.S. – This is the company's largest segment (accounting for 40.6% of total revenues in 2022). The segment remains unchanged despite the new organizational structure.
International Operated segment (48.2% of total revenues in 2022) – The segment comprises wholly-owned markets, or countries where the company operates. It operates in Australia, Canada, France, Germany, Italy, the Netherlands, Spain and the U.K.
International Developmental Licensed Markets (9.8% of total revenues in 2022) – The segment comprises primarily developmental license and affiliate markets in the McDonald’s system. Corporate activities are also part of this segment.
Owing to a rise in COVID-19 cases, government restrictions on operating hours, limited dine-in capacity and mandated dining room closures (in some cases) have been prominent.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in McDonald's ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $2,973.16, or a gain of 197.32%, as of July 6, 2023, and this return excludes dividends but includes price increases.
The S&P 500 rose 172.50% and the price of gold increased 47.29% over the same time frame in comparison.
Analysts are anticipating more upside for MCD.
Shares of McDonald’s have outperformed the industry in the past three months. The company’s upside is fueled by strong comps performance, digital initiatives, marketing campaigns and loyalty programs. McDonald’s is increasing its focus on menu innovation, as it believes that the strengthening of the core menu, solid marketing and improved pricing are likely to pave the way for additional growth in the upcoming periods. The company is also undertaking efforts to drive growth in international markets. Robust digitalization is likely to help the company support long-term growth. Earnings estimates for 2023 have moved north in the past 30 days, depicting analysts’ optimism over the stock’s growth prospects.
The stock has jumped 5.32% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2023; the consensus estimate has moved up as well.
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If You Invested $1000 in McDonald's 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in McDonald's (MCD - Free Report) ten years ago? It may not have been easy to hold on to MCD for all that time, but if you did, how much would your investment be worth today?
McDonald's' Business In-Depth
With that in mind, let's take a look at McDonald's' main business drivers.
Founded in 1948, Oak Brook, IL-based McDonald’s is a leading fast-food chain that currently operates more than 39,000 restaurants in more than 100 countries. The company mainly operates and franchises quick-service restaurants (QSRs) under the McDonald’s brand. Nearly 93% of the company’s restaurant worldwide are owned and operated by independent local business men as well as women. The company’s revenues include sales by company-operated restaurants and fees from restaurants, which are managed by franchisees.
The business is managed as a distinct geographic segment.
Beginning Jan 1, 2019, the company had begun operating its results under a new organizational structure.
U.S. – This is the company's largest segment (accounting for 40.6% of total revenues in 2022). The segment remains unchanged despite the new organizational structure.
International Operated segment (48.2% of total revenues in 2022) – The segment comprises wholly-owned markets, or countries where the company operates. It operates in Australia, Canada, France, Germany, Italy, the Netherlands, Spain and the U.K.
International Developmental Licensed Markets (9.8% of total revenues in 2022) – The segment comprises primarily developmental license and affiliate markets in the McDonald’s system. Corporate activities are also part of this segment.
Owing to a rise in COVID-19 cases, government restrictions on operating hours, limited dine-in capacity and mandated dining room closures (in some cases) have been prominent.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in McDonald's ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $2,973.16, or a gain of 197.32%, as of July 6, 2023, and this return excludes dividends but includes price increases.
The S&P 500 rose 172.50% and the price of gold increased 47.29% over the same time frame in comparison.
Analysts are anticipating more upside for MCD.
Shares of McDonald’s have outperformed the industry in the past three months. The company’s upside is fueled by strong comps performance, digital initiatives, marketing campaigns and loyalty programs. McDonald’s is increasing its focus on menu innovation, as it believes that the strengthening of the core menu, solid marketing and improved pricing are likely to pave the way for additional growth in the upcoming periods. The company is also undertaking efforts to drive growth in international markets. Robust digitalization is likely to help the company support long-term growth. Earnings estimates for 2023 have moved north in the past 30 days, depicting analysts’ optimism over the stock’s growth prospects.
The stock has jumped 5.32% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2023; the consensus estimate has moved up as well.