How has McDonald’s stock grown since going public in 1965?
In 1965 McDonalds sold 100 hundred shares worth $2,250 while today their are well over 75,000 shares that are worth more than $5 million. McDonalds stock has split twelve times. As McDonald’s expanded world wide in 1967 the stock market also began to flourish. McDonald’s is the worlds largest restaurant company and even through the recession the stock has risen. The stock market benefits from the success of the restaurant franchise so as McDonald’s introduced the iconic Big Mac Hamburger and other items such as salads to please all different costumers the stock also gained success. In 2008 during the stock crash, McDonald’s stock was weakened a bit and fell 32% to $1.98 per share. This slight decrease in the stock value quickly rose.
In 2011 the stock rose to $2.37 per share which is a 2.7% increase. The McDonald’s stock rose 31% while the Dow Jones industrial average only rose 1.2%. in the past ten years the stock has grown more than 240%. The expansion of McDonald’s throughout the world, and renovation of the restaurants and menus have contributed to the financial growth of the McDonald’s stock market.
McDonald’s stock has proven to be stable even through the great crash and the recession. A slight decrease in 2008 has since come back even stronger. In 2011 McDonald’s was the leading company on the Dow. McDonald’s stock has a constant appreciation rather than depreciation because there is always a demand for cheap food with fast service. The growing chain continues to perform and accelerate past other fast-food restaurants as well as in the stock market. The steady success of the McDonalds has increased the value of stock because it is not risky.
How has the McDonald’s stock market affected the business of McDonald’s restaurants?