McDonald's Shares: Price, Dividends and Performance
Investing in McDonald's stock remains a good way to generate a steady dividend in a relatively stable industry.
How much can you make with McDonald's stock?
Get up-to-date and precise information on McDonald's stock with its current price, dividend yield, analysis and our opinion.
This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in McDonald's: Our key take-aways
- Stock exchange: NYSE
- Stock index: S&P500
- Dividend 2021: $5.25
- 2022 Dividend Forecast: $5.52
- 1-year performance: +8.34
Should I buy McDonald’s stock?
McDonald's stock is first and foremost a yield stock that has paid a regular and uninterrupted dividend for many years.
It is therefore interesting to have it in your stock portfolio to generate an income each year with a yield close to 3%.
But this stock can also grow in the years to come and generate a capital gain.
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How can I buy shares in McDonald’s ?
To buy McDonald's on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add McDonald's to your stock portfolio.
How much are McDonald’s shares?
See price chart below to follow McDonald's stock price in real time.
Why McDonald's shares could go up:
McDonald's current environment and economic situation provides many reasons for the stock to rise, including
- A strong brand image: McDonald's brand has a worldwide reputation and is extremely popular with loyal customers.
- Strong marketing: McDonald's invests a lot of money in advertising and marketing every year, which helps it to further increase its brand awareness and customer base.
- An international presence: McDonald's is a company present throughout the world and in more than 100 countries with more than 38 000 restaurants.
- A strong diversification of products and services: McDonald's product range is regularly enriched with new products to meet the new needs of consumers and the company also offers innovative services such as delivery or McCaf.
- Sponsorship: McDonald's sponsors numerous sporting and cultural events around the world to increase its visibility.
- Strong adaptability: By introducing local products in its markets, McDonald's shows a strong ability to adapt to the habits of consumers in all countries.
- A solid financial situation: Finally, the group benefits from a strong financial situation with constant and increasing revenues over time.
Why McDonald's shares could go down:
On the other hand, some elements of this same analysis are more likely to point to a decline in McDonald's share price with :
- A criticized image: the products sold at McDonald's are often criticized by health professionals.
- Lawsuits: McDonald's has also been sued on several occasions for environmental and animal rights issues.
- Strong competition: the threat of other well-established restaurants and fast food outlets can reduce McDonald's market share.
-Strong economic influences: Global economic downturns or pandemics can significantly reduce a company's profitability.
- Strong regulation: Similarly, McDonald's business can be hindered by the constant vigilance of food regulatory agencies.
- Generic products: Fast food today offers generic products that can be easily copied, further increasing McDonald's competition.
Can I buy McDonald’s stock online?
Yes! You can buy McDonald's shares online. For many buyers this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my McDonald’s shares?
Selling McDonald's stock can be done in several ways in Canada:
- With a registered account, you can sell only the shares you actually own by simply placing a sell order.
- With a margin account, you can also short these stocks.
- Finally, you can also speculate on the decline of this stock with options or CFDs.
What investment vehicles in Canada can hold McDonald’s stock?
McDonald's shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
Of course, it is possible and easy to buy McDonald's shares online, either by placing a stock order with your regular broker or by investing in a fund that includes this stock.
This is possible with an ETF or a mutual fund.
McDonald’s share price history over 10 years:
McDonald’s dividends and payment dates
In 2021, the McDonald's Group paid a dividend of $5.34 to its shareholders.
McDonald's has been paying a dividend to its stockholders continuously since 1980.
The dividend is paid quarterly, four times a year, with ex-dividend dates in February, May, August and November.
The current yield of McDonald's shares in relation to its dividend is 2.14%.
For 2022, the group has announced a dividend per share of $5.52.
|Dividend: payout 2021||Payout 1||Payout 2||Payout 3||Payout 4|
|Dividend per stock||$1.29 per share||$1.29 per share||$1.29 per share||$1.29 per share|
|Dividend: payout 2022||Payout 1||Payout 2||Payout 3||Payout 4|
|Dividend per stock||$1.32 per share||Pending||n/a||n/a|
What is the dividend yield for McDonald’s over the last 10 years?
The yield on McDonald's shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Good to know
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
Good to know
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about McDonald’s stock:
A critical analysis of McDonald's stock:
Fundamental analysis of McDonald's stock shows many interesting signals over the medium-term with the following indicators:
- High margins: McDonald's EBITDA to sales ratio is high, indicating high margins before depreciation, amortization and taxes.
- Profitable business: The Group's strong net margins reflect excellent business profitability.
- Positive consensus: the consensus of analysts covering the stock is positive with a majority of Buy or Overweight recommendations.
- Good business visibility: McDonald's business visibility appears to be quite good, with small gaps between analysts' estimates.
- Low growth: McDonald's expected growth remains relatively low compared to other stocks with higher growth potential.
- High Debt: McDonald's Group still has significant net debt and low EBITDA from a financial standpoint.
- High valuation: In terms of earnings multiples, the company is a well valued stock by the market and the enterprise value to sales ratio makes it one of the most expensive worldwide.
A technical analysis of McDonald's stock:
The charts and technical analysis of McDonald's stock over the medium to long-term also return bullish signals with the following indicators:
- The RSI is currently at 60.528, which gives a strong buy signal.
- The short and medium-term stochastics are also sending a buy signal while the long-term stochastic is sending an oversold signal.
- The MACD is currently at 14.240 and is sending an interesting buy signal.
- The simple and exponential moving averages are all sending a buy signal with the exception of the MA5 simple moving average which is sending a sell signal.
- The next technical supports for McDonald's stock are located at 226.19 and 205.10 and the next technical resistances are located at 259.86 and 272.44.
Who is McDonald’s?
McDonald's Corporation is an American company that operates in the restaurant industry. More specifically, this company is currently the world's leading fast food chain.
McDonald's sales by type of restaurant are distributed as follows:
- Franchised and affiliated restaurants with 55.8% of the turnover and more than 36 521 franchises including 7146 affiliates.
- Company-owned restaurants with 42.4% of sales and 2,677 restaurants.
- Other types of restaurants with 1.8% of sales.
In addition to the McDonald's brands, the group also operates the Pret à Manger restaurant chain in the UK.
McDonald's currently employs over 200 000 people. The geographical distribution of its sales is as follows:
- The United States with 47.7% of turnover
- The rest of the world with 58.3% of turnover
Who are McDonald’s’s competitors?
Although McDonald's is currently a leader in its industry, it has a few large competitors in the industry, the main ones being
- Burger King: This American fast food chain currently has more than 13 000 restaurants in about 100 countries around the world, most of them in the United States and Canada.
- The Wendy's Company: This other American fast food chain is the third largest in the world. It is part of Wendy's International.
- Taco Bell: This American fast food chain is a subsidiary of Yum! Brands group and the world leader in Tex-Mex themed restaurants. It became popular by offering dishes inspired by this cuisine and adapted to fast food.
- KFC: Kentucky Fried Chicken is an American fast food company that is also part of the Yum! Brands group. It was created in the 20th century in Kentucky.
- Subway: This American fast food chain offers sandwiches and salads. Since 2010, it has become the largest fast food chain in the world in terms of number of restaurants, with more than 45 000 restaurants in over 110 countries.
Who are McDonald’s’s partners?
Of course, McDonald's also has a few strategic allies and regularly forms strategic partnerships with other companies. Here are some of its major current partners:
- Beyond Meat: McDonald's has developed a vegan hamburger with this meat alternative company.
- UberEats: McDonald's is also partnering with the food delivery company UberEats in several countries around the world to have its menus delivered to your door.
- Snapchat: McDonald's was the first brand to launch the Snapplication in Canada which was a one-day hiring event on the virtual platform.
- Jumia Food: since 2019, McDonald's has also signed a partnership with Jumia Food with the aim of having its meals delivered to homes in Morocco.
- WestJet: finally, the group has also signed a partnership with WestJet in Canada to serve its McCafé premium roast coffee on board its aircraft.
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