McDonald's Corporation (NYSE: MCD)Share Price and News
About McDonald's (NYSE:MCD)
Founded in 1940, McDonald’s Corporation has grown into one of the world's most recognisable brands, operating over 43,000 restaurants across more than 100 countries as of 2025. The company’s menu features iconic items such as the Big Mac, McNuggets, and McCafé beverages.
McDonald’s operates primarily through a franchise model, with approximately 93% of its restaurants franchised, allowing for scalable growth and local market adaptability. The company's global presence and consistent brand experience have solidified its position as a leader in the quick-service restaurant sector.
It has 40,000 restaurants worldwide that employ ~2m people as employees or franchisees and serve 65m people each day. Australia is the fourth largest market after the US, UK and France by revenue. It accounts for roughly a thousand stores and just over 100,000 employees – it is the largest youth employer in the country.
Its business model is unique, requiring franchisees to pay not just royalties on sales but rent for running ‘their’ business on a property – not to mention a whopping US$1.5m upfront charge that must be financed with the franchisees’ own money (yes, their own – not borrowed funds).
McDonalds tends to buy cheap land that will inevitably grow over a 20-year period during which their franchisees are contracted with them. And it sets up its stores with a plain, simple and consistent layout meaning minimal upfront costs for them.
MCD Company History
McDonald’s began as a single restaurant in San Bernardino, California, opened by brothers Richard and Maurice McDonald. In 1955, Ray Kroc joined the company as a franchise agent and later purchased the business, leading to rapid expansion.
The company went public in 1965 and those who bought 100 shares at its 1965 IPO for US$2,250 would have over US$8m today after splits and stock dividends.
McDonalds has stood apart in the sector amongst customers for its innovations such as the Big Mac (developed by one individual owner in Pittsburgh in the late 1960s), the McMuffin and its various marketing campaigns. In other respects, it has also taken others' ideas and done them better such as drive-through. Its famous golden arches were introduced in the 1970s and the 'I'm lovin' it' was first used in 2003.
Current CEO Chris Kempczinski was hired in late 2019. His tenure has seen many challenges including the pandemic, the rise of delivery technology, high inflation causing low-income customers to stay away and tension with franchisees from things such as increases in royalty rates and changes to inspection procedures.
Future Outlook of McDonald's Corporation (NYSE: MCD)
McDonald’s reported systemwide sales of US$130bn and for US$25.9bn in company revenue - the latter figure up 2%. Its profit was US$8.2bn which was down 3% but its EPS was only down 1% thanks to share buybacks.
Strategically, McDonald’s continues to invest in its "Accelerating the Arches" initiative, focusing on digital enhancements, delivery expansion, and menu innovation. The company is also committed to sustainability goals, aiming to achieve net-zero emissions by 2050. But challenges such as fluctuating commodity prices, labour shortages, geopolitical tensions, and anti-American sentiment due to Donald Trump could impact future performance.
Analysts expect $26.4bn in revenue (up 2%) and an $8.8bn profit (up 7%), or $12.21 EPS, for the full 2025.
Is MCD a Good Stock to Buy?
McDonald’s offers a compelling investment case, particularly for those seeking stable returns and dividend income. Notwithstanding US company's preferences for buybacks, Maccas is reasonably generous As of May 2025, the company pays an annual dividend of $7.08 per share, with a yield of approximately 2.22% and a payout ratio of 62.48%.
Analysts maintain a consensus "Buy" rating for MCD, with a 12-month average price target of $334.74, suggesting a potential upside of around 5% from current levels. That said, their estimates put it at a P/E of 25.7x and they have estimated flat revenues for the year ahead. The company's resilient business model, global footprint, and strategic initiatives support its long-term growth prospects.
However, investors should remain cognisant of potential risks, including weak economic sentiment, competitive pressures, geopolitics and franchisee tensions.
Our Stock Analysis
Here are 5 key takeaways from the FY24 results of BHP that you may’ve missed
5 key takeaways from the FY24 results of BHP 1. Copper will be where ‘it is at’ from hereon…
Here are 5 ASX Stocks for young investors to buy
5 ASX Stocks for young investors to buy If you’re a young investor, you are less likely to be a…
BHP wanted to buy Anglo American, but not even A$75bn could get the deal over the line
Nearly a month since it was made clear BHP wanted to buy Anglo American, it seems the deal is off.…
Blackwater and Daunia: Is this US$3.2bn deal BHP’s loss and Whitehaven’s gain? Or is it Caveat Emptor?
It has been 2 weeks since the transaction of the Daunia and Blackwater metallurgical coal mines between BHP (ASX:BHP) and…
The 4 top ASX resources stocks for October!
Here are 4 companies that we think are the top ASX resources stocks for October! SIGN UP FOR THE…
More ASX potash stocks bite the dust! Are they all a lost cause?
Potash stocks may seem like a no-brainer for investors right now. After all, fertilisers are important to the food and agricultural…
- « Previous
- 1
- 2
- 3
- Next »
Frequently Asked Questions
As of May 2025, McDonald's pays an annual dividend of $7.08 per share, with a yield of approximately 2.22%. The company has a history of consistent dividend payments, reflecting its financial stability.