Well, yes you can! However, since the company is so well-known, there is often a lot more to understand about the process.
Prior to buying McDonald’s shares, you have to appreciate the advantages of doing so, where to buy them, and how to follow the proper procedure. Fortunately for you, you can find these details, and more, in this article.
Where to Buy McDonald’s Shares?
When buying the shares of US companies, you have to be associated with a broker. You can then use their platforms to buy and sell shares as needed. Your broker plays a key role in your trading experience.
As such, it is important to select the best possible broker.
How To Pick a Broker?
There are several elements to consider when selecting your broker. First and foremost, there is reliability. It is always best to go with one that is licensed and regulated by a major financial agency such as ASIC. This ensures that the broker has to maintain certain standards and services. In turn, this reduces the risk of being defrauded or scammed.
In many instances, this also means that the broker has taken steps to ensure that your money is separate from theirs. Therefore, even if the broker goes bankrupt, you will have peace of mind knowing that your money is safe.
At the same time, you should pay attention to the platform offered by the broker. Not all platforms are created equal. You should select a platform that is renowned for its efficiency and reliability. This allows you to place trades quickly and easily, ensuring that you are able to take advantage of any opportunities that present themselves.
Of course, the broker that you select should be suitable to your budget as well as your investment aspirations. Look for accounts that fit your budget in terms of minimal deposits or management fees. Check that the broker offers the kind of leverage that you are looking for too. This will allow you to invest in stock or shares that you may necessarily not be able to afford outright.
What is McDonald’s?
McDonald’s Corporation is the second largest fast food chain franchise in the world. It is estimated that there are over 38,000 restaurants in 119 markets around the world. Technically, McDonald’s was started in 1948 by the McDonald’s brothers – Maurice and Richard. However, the restaurant grew into a franchise under the watchful eye of Ray Kroc.
In 1961, Ray Kroc had bought out the brothers and before the end of the decade, there were 1,000 restaurants across America. The company’s stock began trading publicly in 1965. For 2019, the revenue for McDonald’s stood at USD 21.08 billion.
|Date of Franchise||No. of Locations||Revenue (2019)||Headquarters|
|April 15, 1955||38,695||21.08 billion||Chicago, Illinois|
While most individuals think of McDonald’s in terms of the food and service that they offer, the corporation’s landmark contribution is its business system. The company created a better way of conducting business. This helped them to keep costs low, producing cheap food, while maintaining a certain level of quality.
Why Should I Buy McDonald’s Shares?
Of course, with plenty of investment opportunities available to you, it is only natural to wonder why you should consider buying McDonald’s shares specifically. Thus, let’s take a look at why this franchise continues to be worth investing in.
The sheer popularity and reputation of McDonald’s is unprecedented. And, although it may dip or waver, it is unlikely that this corporation will experience too much loss in this department. This ensures that McDonald’s will continue to be a smart investment for many investments to come.
As an additional benefit, McDonald’s has had a history of outperforming its competitors during periods of economic downturn. And, as the economy will continue to struggle due to the global pandemic, it is important for you to invest in a company that is capable of continuing to produce profits during such situations.
There is also the fact that McDonald’s continues to change and evolve for new generations. This includes improving its restaurants’ formats, boosting its delivery options, and changing its menu to cater for a growing plant-based audience.
Already, McDonald’s has begun to appreciate that the future is in smaller delivery hubs. This is due to the fact that more and more people are ordering in than ever before. As a result, it will be investing in these ideas, while solidifying its own delivery options.
This newer format has the added advantage of also costing less money to invest in. Nevertheless, it is likely to boost sales. Furthermore, the new design allows even more McDonald’s outlets to open up, increasing its reach to people all over the world.
What this means is that even as the world moves forward, McDonald’s will not fall behind. Rather, they will take advantage of these modern trends and will continue to create a presence in a new and modern market as well. Due to this, you can continue to see a return on your investment well into the future.
Last, but not certainly not least, McDonald’s business model means that the continuing focus will be on improving the system behind the food. Thus, the company will take the necessary steps to improve the infrastructure so that the outcome will either be the same or better for consumers.
What to Consider When Buying McDonald’s Shares?
There are several elements to consider before buying McDonald’s shares, particularly as an Australian citizen.
First and foremost, it is important to do your research. Yes, McDonald’s might be one of the most famous corporations in the world, but how much do you know about it. Therefore, your first order of business would be to look into its financial history.
There’s no need to go too far back, but you may want to look at the revenue stream and growth over the last decade or five years or so. Has the corporation experienced steady growth? Does it continue to bring in profits? Has its stock prices been rising or has there been a moment when it has fallen.
It is also a good idea to look at how McDonald’s has fared during economic downturns in the past. Yes, it may have survived through such instances, but just how much did the profits and stock price fall? This will help you determine the level of risk involved and let you know if this is something that fits in well with your investment plan.
It is just as important to get a glimpse of how McDonald’s will continue performing in the future. As mentioned, the company is already taking steps to boost their popularity with newer generations. However, how successful are these campaigns likely to be?
In a similar fashion, you should also consider what McDonald’s competitors are doing in response to the corporation or to pull ahead. Does it seem like these campaigns will be more successful? Or, do they continue to lag behind McDonald’s?
If you do decide to buy McDonald’s shares, your next question will be how much stock should you buy? As you are well aware, there is plenty of competition regarding McDonald’s shares. Due to this, the cost of an individual share can be rather high.
As such, you have to determine just how much you can invest in the company. You will have to buy a significant number of shares to get a decent profit. At the same time, you should keep in mind that you should only ever invest an amount that you are willing to lose, thus risk has to also factor into this decision.
If individual shares seem too expensive, these aren’t your only option. You can also invest in CFD trading. Here, you don’t buy the shares outright. Due to this, there is no ownership involved – you don’t have a stake in the company. Instead, you speculate on the market price of McDonald’s stock.
This allows you to trade a long or short position on the share prices, rather than just waiting for them to just rise. However, the main advantage with CFD trading is the option of leveraging. This allows you to only put up a small fraction of the share price. The rest of the capital will be covered by your broker.
Is Now a Good Time to Buy McDonald’s Shares?
Perhaps you have decided to buy McDonald’s shares, but you aren’t convinced that you should invest right now. Well, when it comes to investing and buying shares, there is no time like the present. This is because it is important to play the long game.
Most experts would recommend that you hold stocks for months, perhaps years. This is because long-term investments tend to provide you with a better rate of return. As such, you can make a higher profit. Of course, to enjoy these profits, you need to invest as soon as possible.
There is also the fact that when you hold shares for a longer period of time, you are able to ride out any low points in the market. Bear in mind, these lows aren’t permanent, but they can often take months or longer for the tide to change. This is particularly true in times of economic upheaval. Thus, you need to give yourself time for the situation to turn around.
Furthermore, given the current economic situation, investment is low. This creates opportunities for average investors to buy shares for lower amounts. Eventually, the market will turn around and McDonald’s will continue to reap impressive profits once more. Then, the stock price will shoot up, allowing you to either reap the benefits by selling or continuing to hold a strong market position.
Due to this, it is best to buy shares in McDonald’s sooner rather than later. You will be glad for this decision in the future.
This is what you need to know about buying McDonald’s shares in Australia. As you can see, there is quite a bit more to the process than you may have realized. This includes the actual purchase of the shares. For instance, rather than buying the stock outright, you also have the opportunity to engage in CFD trading.
Apart from that, it is vital that you carefully consider buying McDonald’s shares. Yes, it is a great investment, but you should be aware of the rewards and the risks that go along with investing in the company. Furthermore, you should also know the right time to purchase these shares.
Now that you have the knowledge that you need to make a sound decision, you can buy McDonald’s shares on your own terms, at the right moment. In turn, this can increase the profit that you can make.