McDonald’s (Macca’s in Australia) is a fast-food company that offers services in the US, some European countries, Australia and a few countries in Asia.
As of last year, the company had 38,695 outlets across 100 countries. It is the world’s largest restaurant chain in terms of revenue, with 69 million customers daily across all outlets.
Although Richard and Maurice McDonald founded the company, its success is mostly attributed to Raymond Kroc. Ray joined the company as a franchise agent in 1955 before buying it from the McDonald brothers.
Upon buying the company, he decided to use the name McDonald as the company’s official name. It was Raymond that took the company to the international stage by transforming it into the global franchise we know today.
McDonald’s was founded in 1940, but it wasn’t until 1971 that it crossed into the Australian shores.
McDonald’s outlets in Australia fall under McDonald’s Australia – an unlisted Australian public company limited by shares. Individuals operate more than two thirds of the Australian restaurants, whereas the rest are company-owned.
The History of McDonald’s in Australia
The first McDonald’s in Australia was opened late in 1971 in the Yagoona suburb (20 kilometres south-west of Sydney CBD). The launch of the Yagoona store was such a big deal that a double-decker bus transported guests to the event. It is said that a man dressed in a clown suit gave out yo-yos to the children in the opening.
As you’d expect, not many meals were offered at the time. You’re likely to be surprised if you saw the McDonald’s price list back then.
Here is what the meals costed in 1972: a burger went for 20 cents, a Cheeseburger/deluxe burger for 25 cents, a Big Mac cost 49 cents while a Chicken Dinner would have set you back $1.20. The Fish dinner went for $1.05 whereas the 8 piece basket cost $2.00. The 12 piece basket was the most expensive meal ($3.00) on the menu.
According to an interview with the Yagoona store manager then, the chicken and fish dinners comprised of French Fries, coleslaw salad and whole pieces of either chicken or fish.
The Quarter Pound was introduced in the U.S. in 1972.This was just around the same time the 2000th outlet was opened in Illinois. It took 4 years before the Quarter Pound was incorporated to the Aussie menu.
More and more outlets have been opened in different areas over the years. Today the total number of McDonald’s outlets in Australia is around 970 with over 100,000 employees.
After the first outlet, several others were subsequently opened still in Sydney. 2 years later in 1973, the first Melbourne (Victoria) outlet was opened in Springvale Road.
The McDonald’s store in the Warrawong suburb of Wollongong was first McDonald’s drive-through to be launched in Australia. The 9000th McDonald’s store was opened in Sydney in 1986, 2 years after Ray Kroc had passed on. McDonald’s was already the most successful restaurant chain in and out of the country at this time.
The Yagoona store was, unfortunately, closed alongside with the drive-thru in 1994. The building housing the store was turned to become GIO offices.
That wasn’t the only store that was either removed or demolished. The Fairlight McDonald’s opened in 1972 closed its doors in 1995 after Manly council failed to grant permission for an additional late-night drive-through.
The Newtown store that had been in operation since 1989 closed down in 1998. The store cited a shift in the demographics of the area as the reason for ceasing operations. In 2016, the original Melbourne store in Springvale Road was brought down and renovated to a new McDonald’s.
Still, McDonald’s remains to be a popular and loved food joint by the Aussie population. Almost 2 million Australians eat or order from McDonald’s every day.
How McDonald’s Australia work
In 2013, McDonald’s Australia changed its name to Macca’s to reflect the Australian culture better. Select stores within the country proceeded to change their signage to the new name Macca’s. The name has only been adopted in Australia.
Interestingly, the company submitted a request to add the name to the Macquarie Dictionary in their next edition.
The rebranding to Macca’s was a result of the findings of a survey conducted by McDonald’s. According to the study, over 55% of Australians referred to the company by a shortened form of its name.
“We’ve been a part of Australia for over 40 years now, and we’re incredibly proud to embrace our ‘Australian-only’ nickname,” explained Mark Lollback, the Chief Marketing Officer McDonald’s Australia.
“What better way to show Aussies how proud we are to be a part of the Australian community than by changing our store signs to the name the community has given us?”
In the first week of adopting the name, 13 outlets changed their signage as part of the Australia Day celebrations by the international food giant.
How to invest in McDonald’s Australia
McDonald’s is one of the most successful company’s in the world today. The global fast-food restaurant recorded a revenue of US$21.076 billion in 2019. In the same period, the operating company’s assets totalled to US$32.811 billion.
Here is a quick breakdown of how the company has performed financially in the last 3 years:
|Year||Total assets (in billions)||Revenue (in billions)||Net income (in billions)||Price per share|
Mcdonalds statistics for 2016, 2017 and 2018.
McDonald’s share is listed in the U.S. on the New York Stock Exchange and trades as MCD.
At the time of writing the company opened the day at $185.09. It has closed the day at $184.92. Share prices varied over the day between a low of $184.73 and a high of $190.84. The latest price at the moment of writing was $190.72. Note that all the prices above are in the U.S. dollar currency.
You can invest in McDonald’s using two ways: buying shares in the McDonald’s corporation or by becoming a Macca’s franchisee. Being a Macca’s franchisee means having and running your own Macca’s restaurant under McDonald’s. It is a viable and practical model as over 80% of McDonald’s restaurants in Australia are run by local franchisees.
Most people don’t leave a tip in McDonalds restaurants. Read our tipping statistics to find out how much you should tip in other restaurants.
Benefits of being a McDonald’s franchisee
- McDonald’s provides support and resources to make your business idea fruitful.
- You get to enjoy the satisfaction of working with familiar people from employees to customers, not to mention the larger community.
- You can share your suggestions and contribute ideas with the company
- Franchisees give you an opportunity to grow and increase your business knowledge through training programs
How to buy shares in McDonald’s Corporation (MCD)
Before deciding to buy shares in McDonald’s, you need to do some research and understand the financial aspects of the company. Once you’re caught up, and sure it is in line with your financial goals, you can then proceed.
Here are the steps involved:
- First, compare the different trading platforms at your disposal. We recommend using HFTrading as it offers access to the U.S. stock markets where you’ll find MCD shares. Besides, HFTrading has been proven to be reliable and safe. The broker is regulated and overseen by the Australian Securities and Investment Commission. HFTrading also has commission-free trading.
- Open an account with your broker and fill in your details to complete the registration process. In the case of HFTrading, you’ll be required to choose from the three account types offered – Silver, Gold and Platinum.
- Proceed to fund your account using your preferred payment method (confirmed that it is supported).
- You can search for the McDonald’s (MCD) shares on the platform or scroll through the list of stocks available.
- Buy the shares or use the limit order to delay the purchase of the shares until the right time, depending on your investment plan and risk level.
- Based on your budget, choose the number of shares you want to buy. The share price currently stands at around US$190. Today, most brokers allow you to buy a fractional share of McDonald’s, but you’ll need to confirm that before signing up.
After successfully buying the shares, you now own a part of the world’s leading fast-food chain. Track the performance of the stock and company as well through the broker’s web platform or application to determine the best time to sell.