There is no doubt that McDonald’s is the largest fast-food chain all around the world. Today the company has more than 37.000 restaurants in more than 100 countries. In the NYSE (under the ticker MCD), McDonald’s is considered the biggest company in the US.
McDonald’s is experiencing a strong upswing movement which reflects the stronger position the company has placed itself lately. The new products that McDonald’s has launched lately have brought them back to the lead in their industry.
If you’re considering investing in McDonald’s stock, you better follow our beginner’s guide to buying McDonald’s shares. We hope to present enough information about the company for traders to decide if this is the right investment for them and their trading portfolio.
The effects that Covid has had in the fast-food industry have shown already signs of a strong recovery. So, what is to come during the rest of 2021? Is this a good time to buy McDonald’s stock?
Why is it a good idea to invest in McDonald’s stock?
The Covid-19 pandemic hit the fast-food industry as much as many other industries. However, McDonald’s struggles were measured in 20%. And that reduction in 2020 has already been recovered, rising even more in 2021.
The price of McDonald’s shares is on the rise, so this may be a good time to invest in a stock that seems to be going to experience a further rise in the future.
What to consider when investing in McDonald’s stock?
McDonald’s took a long time to push the delivery part of their business, but come 2020 it became a must, and the company didn’t waste any time in making their home delivery system an efficient one, becoming a strength for the company.
And, connected to this point, McDonald’s has invested strongly in technological developments that have transformed the fast-food experience. Not only do they have a mobile app that allows users to order in a fast and secure way to receive their meal at home, but they also have installed in-store kiosks that have automatized the whole ordering process, making it quicker and more efficient.
McDonald’s has also shown some of the highest revenue in and out of the US, with global sales growth for more than 15 consecutive quarters.
One of the strengths of the company is the wide offer that suits all types of customers, as well as a long history that positions them in a perfect position as leaders in the industry.
But another aspect that attracts traders is their dividends scheme which has been increasing steadily yearly since the 70s. An option that is quite interesting for traders looking for a bit of a passive income.
How to buy McDonald’s stock step by step
In order to be able to buy McDonald’s stock, traders will need a broker that gives them access to the NYSE where they can find McDonald’s shares under the name MCD.
If you have a broker, then you are good to go. If you haven’t chosen a broker yet, there are a few things to keep in mind. But the base of any good decision is to know exactly what to expect from your broker. Traders should have clear financial objectives, a trading strategy, and a list of priorities. Are you into long-term investments? Or are you a day trader?
What is more, traders considering buying McDonald’s shares should have a clear view of how this stock fits their portfolio. Experts recommend diversifying investments to the point of investing no more than 10% of your total capital into one single company. This will guarantee better management of the innate risk that comes with trading.
Once you narrow down the pool of possible brokers you are interested in, then it is time to look at them in detail. What are their commissions and fees? What online trading platforms do they offer? Do they have a mobile app too? What do users say about their customer service? Can you rely on them to help you with your education in trading? Can they provide you with the necessary research tools to make wiser deals and become a successful trader?
Answering these questions will definitely be helpful if you’re looking to find the perfect broker for you, one that adapts to your trading style and provides you with the tools you need to achieve success in the market.
The next step is to open an account and verify it. This may take a little bit of time, but it’s usually straightforward, similar to opening a bank account.
Now you are all set to deposit the money you want to invest and start buying McDonald’s shares. And to do this, there are two main options. First, traders can buy McDonald’s stock at the current market price, which means their order will be executed immediately. A different option is what’s called a limit order. In this case, traders decide at what price they want to buy the shares, and the position is only executed when (or if) the value of the shares gets there.
Both options may bring advantages for traders, which will mostly depend on their overall investing strategies.
Overview of the company
McDonald’s can be found in the New York Stock Exchange (NYSE) under the ticker MCD.
The company is the second-largest fast-food company and definitely the largest foodservice retailer publicly owned.
Founded in 1940 as a single restaurant, it now owns franchises all around the world, with its headquarters in Chicago, US.
With the recent healthier consciousness and demand, McDonald’s has evolved too, including salads and fruit, among other options for vegans and those looking for a fast meal that is not as unhealthy as probably most of McDonald’s food is.
The company income comes from the royalties paid by franchisees plus the revenue created by the restaurants they manage. The company has 1.7 million employees all around the world, and it’s among the 10 most valued brands in the whole world.
Final thoughts on buying McDonald’s stock
McDonald’s has set up a system that has allowed them to cope with the effects of the pandemic, showing signs of the fast recovery that may indicate the company’s shares are going to go back to their value in 2019. This may be a good time for traders looking to profit from this upswing movement.
But what is more, McDonald’s has always shown their strong mentality to go with the times, moving forward and adapting to what their customers want. Using the newest technologies was a smart move that has put them on a completely different level and has made them an attractive option for investors looking into companies that are ready for the new changes that are to come.
Investors may find that McDonald’s stock is a good fit for them right now before prices go as high as they used to be before the pandemic.