McDonald's is owned by several shareholders as it is a publicly traded company. According to reports from CNN Business, most of the owners of this company are institutional investors, representing 70.14% of the outstanding shares. Individual owners represent only about 0.31%.
Today, McDonald's remains one of the world's most recognizable fast food chains. According to a study, approximately 7% of all Americans consume a meal from this fast food chain every day. This equates to approximately 80% of all Americans eating at a McDonald's franchise annually.
This success has led to investors becoming cumulative owners732.42 million shares outstanding, giving it an estimated market capitalization of $196.23 billion. McDonald's largest shareholder is The Vanguard Group Inc, which at the time of writing owns an 8.81% stake in the company worth $16,994,291,524.
This article is about the owners of McDonald's and its largest shareholders. We'll also look at some of the companies that McDonald's owns.
Contents
A brief history of McDonald's ownership
The first McDonald's restaurant opened in 1940 after two brothers, Maurice (Mac) and Richard McDonald, turned their idea for a hot dog cart into a burger restaurant with an emphasis on speed and efficiency.
McDonald's, based in San Bernardino, California, quickly got a makeover after the two brothers decided to renovate their restaurant to produce large quantities of food at low prices. They developed the "Speedee Service System", the precursor of the modern fast food restaurant.
This system emphasized a simple menu with only burgers, chips (which were later replaced by fries) and the infamous pie. The brothers purchased the machines for McDonald's from a milkshake salesman named Ray Kroc.
In 1954, Kroc saw the potential for a national chain of fast food restaurants based on the McDonald's concept. He entered into an agreement with the brothers to franchise the concept and began opening McDonald's restaurants across the United States.
In 1955, Kroc launched McDonald's Systems in Illinois, where he opened the first franchise. In 1961, he bought out the two brothers to become owners of McDonald's. He paid the brothers approximately $2.7 million as he became increasingly frustrated with the way the restaurant was run and wanted to control it himself.
Shortly thereafter, the company began to experience rapid growth and Ray Kroc began looking for ways to finance these expansion plans. The only viable option that made sense was an IPO, as it would allow the company to raise significant investment for expansion.
McDonald's IPO
On January 21, 1965, the fast food giant opened its doors to government investment. To Kroc's taste, the reception was overwhelmingly positive. The IPO caught the attention of all these individual and institutional investors, who quickly snapped up the shares.
At the IPO, the stock was priced at $22.50 per share, with the underwriters selling 2.6 million shares of common stock. By investment standards, the IPO was considered a great success as shares quickly rose to $30 per share. share on the first trading day. This move saw the company raise $6 million in capital from the offering.
Before the IPO, McDonald's was already an established company. But it was more of a regional chain with a few locations across the US. The IPO provided the necessary capital to finance the company's expansion. Honestly, McDonald's became one of the most recognizable fast food brands in the world as they grew massively and opened thousands of locations around the world.
Owners and largest shareholders of McDonald's
According to ZippiaMcDonald's had approximately 38,000 restaurants worldwide in 2022. They operate in approximately 118 countries and territories and generated approximately $23.22 billion in revenue in 2021.
The company employs approximately 2 million people across all its franchises worldwide. The United States is the largest contributor to McDonald's revenues, generating approximately $8.7 billion in revenue each year.
Here are the largest shareholders and owners of McDonald's.
De Vanguard Group, Inc.
The Vanguard Group offers a wide range of services, none of which are more recognizable than its investment management and advisory services. They offer their services to equity investments and fixed income groups. Vanguard Group is also expanding its services to investment pools, institutional clients with separate accounts and mutual funds.
Vanguard Group offers its services in every region of the world, including Asia, Europe and the Americas. Founded in 1975, this company has grown into one of the largest asset managers in the world with a...estimated global assets under management of $7.1 trillion.
CNN Business reports thisThe Vanguard Group had reported institutional ownership of McDonald's with an 8.81% stake. This represents approximately 64,487,123 shares owned, bringing the total valuation at the time of writing to approximately $16,994,291,524. This makes them the largest shareholder in McDonald's Corporation.
SSgA Funds Management, Inc.
SSgA Funds Management Inc. Founded in 2001, it is an investment company that offers a wide range of services, including portfolio management, investment advisory services and financial planning. SSgA stands for State Street Global Advisors. And like The Vanguard Group, SSgA also operates globally.
According to the official websiteSSgA operates in 57 countries with approximately $3.71 trillion in assets under management, making it the fourth largest asset manager in the world. It has more than 2,000 institutional clients and more than 32 million direct client participants.
According to CNN Business, SSgA is the second largest institutional owner of McDonald's with an estimated stake of 4.74%. This represents 34,704,308 shares owned, bringing the total stake valuation to $9,145,626,287 at the time of writing.
BlackRock Fondsadviseurs
Founded in 1988, BlackRock Fund Advisors is an American multinational investment firm headquartered in Midtown Manhattan, New York. It is one of the world's leading investment firms with a strong reputation for providing financial services such as investment management, portfolio advice and financial planning.
While the exact number of assets under its management is not known, sources estimate that it will have more than $10 trillion in assets under management by 2022. Known simply as BlackRock, this investment firm serves a diverse client base including individual investors, financial advisors, pension funds, and pension funds. plans, donations and funds.
CNN Businessreports rank this company as the third largest shareholder of the McDonald's company with a 4.66% stake in the company. This represents approximately 34,163,517 shares owned, for a total valuation of $9,003,111,635.
But it's not the only company in which they have a major stake: according to recent reports, the company is a major shareholder in many of the largest companies in the world, including Microsoft, Amazon and Johnson & Johnson.
Wellington Management Co. LLP
Wellington Management Co. LLP is a leading independent investment management firm founded in 1928. It manages more than $1 trillion in assets across a variety of investment strategies for its clients. The firm is known for its rigorous, research-based investment process and for its long-term approach to investing.
One of the company's notable investments is its stake in McDonald's Corporation. Wellington has owned shares in the fast food giant for several years and has continued to increase its position over time. CNN Business considers this company to be the fourth largest shareholder in McDonald's with a 2.37% stake, giving a total valuation of $4,565,144,684.
The investment is consistent with the company's long-term perspective as McDonald's is a well-established brand with a proven track record of delivering steady earnings growth and reliable dividend payments.
Geode Capital Management LLC
Geode Capital Management LLC is a leading investment management firm based in Boston, Massachusetts. This systematic asset management company has a strong track record in managing large and diverse client portfolios.According to the official websiteGeode Capital Management LLC has more than $866 billion under management.
As of the last filing, Geode Capital has a significant stake in McDonald's, one of its largest positions. According to reports, Geode Capital Management LLC has a 1.85% stake in the giant food chain company, which represents a valuation of $3,563,708,021.
J.P. Morgan Investment Management
J. P. Morgan Investment Management is a division of JPMorgan Chase, a global financial company. It is one of the world's oldest investment and asset management companies, founded in 1935.
The division offers a range of investment solutions to institutions, governments and private individuals worldwide. J. P. Morgan Investment Management has a strong focus on asset management and is one of the largest asset managers in the world.
J.P. Morgan Investment Management is a major shareholder in the fast-food giant. According to CNN, J.P. Morgan Investment Management is the sixth largest shareholder in McDonald's Corporation with 1.65%, which equals $3,185,705,069 at the time of writing.
The company has been investing in McDonald's for several years and considers it a solid long-term investment due to its strong brand, consistent financial performance and global presence.
Joseph M. Erlinger
Joseph Erlinger is president of McDonald's USA. He oversees the operations of all 14,000 McDonald's restaurants in the United States.According toBenzinga, Joseph owns approximately 8,000 shares of McDonald's common stock.
Ian Frederick Borden
Ian Borden is Executive Vice President and Chief Financial Officer at McDonald's. He is primarily responsible for the company's financial position, as he oversees the finances of more than 39,000 restaurants in more than 100 countries around the world.
He is one of the longest-serving members of the McDonald's family, as his association with the company dates back 30 years. Benzingadiscretionthat he owns more than 7,000 shares of McDonald's common stock.
Conclusion
McDonald's is a publicly traded company with a significant percentage of shareholders being institutional. The top 5 institutions with the largest stake in McDonald's are The Vanguard Group Inc, SSgA Funds Management Inc, BlackRock Fund Advisors, Wellington Management Co. LLP and Geode Capital Management LLC.
Top executives of the company also have a significant stake in the company, but collectively represent only 0.31% of McDonald's Corporation's total ownership. Joseph M. Erlinger and Ian Frederick Borden are some of the few individual owners with significant stakes in the company.
The fast food giant has a long history of successful operations and its success is reflected in its global reach and impressive financial performance. While the company's management team and board of directors play a critical role in driving strategy and direction, shareholders ultimately have the power to determine the future through their ownership of the company's stock.
