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Category: Dow Jones Industrial Average (DJIA) and McDonald's (MCD)
Date: 22 June 2021 Dow Jones Index Level: 33 876 McDonald's (MCD) stock price: $232.90 We compare the stock price performance of McDonald's to the performance of the Dow Jones since the start of 2010. So has the most quoted stock index in the world outperformed the world's largest burger franchise stock price over the last 10 odd years?
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While the returns provided since the start of the year (YTD) and over the last 12 months are very similar over longer time periods McDonald's has outperformed the Dow Jones with the outperformance widening with time. A $1000 invested in the Dow Jones 10 years ago would be worth $1729 today, the same $1000 invested in McDonald's 10 years ago would be worth $2679 today. "
More About The Dow Jones Industrial Average
The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The DJIA covers all industries except transportation and utilities. The market cap of the Dow Jones firms amounts to $10.2 trillion as at end of May 2021. The Dow Jones Industrial Average has a trailing PE ratio of 28.8 and the PE is projected (forward PE) is at 20.53 with a indicated dividend yield of 1.77% and a price to book value of 5.31
More About McDonalds (MCD)
The McDonald Brothers
Dick and Mac McDonald moved to California to seek opportunities they felt unavailable in New England. Failing in the movie business, they subsequently proved successful in operating drive-in restaurants. In 1948 they took a risk by streamlining their operations and introducing their Speedee Service System featuring 15 cent hamburgers. The restaurant’s success led the brothers to begin franchising their concept—nine becoming operating restaurants.
Ray Kroc
A native Chicagoan, Ray Kroc left high school after his sophomore year to join the World War One Red Cross Ambulance Corps. The war ended before his unit was sent overseas with Ray returning home to earn a living as a musician and later selling paper cups. In 1939, he became the exclusive distributor of the Multimixer (a milkshake mixing machine). He visited the McDonald brothers in 1954 which led to him becoming their franchise agent. He opened up the first restaurant for McDonald’s System, Inc., a predecessor of McDonald’s Corp. in Des Plaines, Illinois in April, 1955. McDonald’s acquired the rights to the brother’s company in 1961 for $2.7 million.
Going Global
Ray Kroc’s vision was that there would be 1,000 McDonald’s restaurants solely in the United States. Yet, McDonald’s continued to grow and expand into international markets beginning in 1967 opening in Canada and Puerto Rico. Today, the company has over 36,000 restaurants in over 100 nations. The most recent opening in Kazakhstan in 2016.
Dick and Mac McDonald moved to California to seek opportunities they felt unavailable in New England. Failing in the movie business, they subsequently proved successful in operating drive-in restaurants. In 1948 they took a risk by streamlining their operations and introducing their Speedee Service System featuring 15 cent hamburgers. The restaurant’s success led the brothers to begin franchising their concept—nine becoming operating restaurants.
Ray Kroc
A native Chicagoan, Ray Kroc left high school after his sophomore year to join the World War One Red Cross Ambulance Corps. The war ended before his unit was sent overseas with Ray returning home to earn a living as a musician and later selling paper cups. In 1939, he became the exclusive distributor of the Multimixer (a milkshake mixing machine). He visited the McDonald brothers in 1954 which led to him becoming their franchise agent. He opened up the first restaurant for McDonald’s System, Inc., a predecessor of McDonald’s Corp. in Des Plaines, Illinois in April, 1955. McDonald’s acquired the rights to the brother’s company in 1961 for $2.7 million.
Going Global
Ray Kroc’s vision was that there would be 1,000 McDonald’s restaurants solely in the United States. Yet, McDonald’s continued to grow and expand into international markets beginning in 1967 opening in Canada and Puerto Rico. Today, the company has over 36,000 restaurants in over 100 nations. The most recent opening in Kazakhstan in 2016.
Dow Jones Industrial Average (DJIA) vs McDonald's (MCD)
The graphic below shows the performance of the Dow Jones Industrial Average (DJIA) index over the last month. As soon as a user clicks on McDonald's (MCD) the graphic recalculates and shows the returns of the Dow Jones and McDonald's (MCD). The graphic will recalculate the returns if users provide their own dates, within the last 10 year (or they can select predefined dates from our Zoom box in the graphic). Data for the graphic obtained from MacroTrends.Net
Comparing the performance of the Dow Jones (DJIA) to that of McDonald's (MCD)
The summary below shows the performance of the Dow Jones Industrial Average (DJIA) and McDonald's (MCD) over various time periods:
1 week:
1 month:
Year To Date (YTD):
1 Year:
5 Years:
10 Years:
For most of the time periods looked at the stock of McDonald's has outperformed the broader Dow Jones Industrial Average. While the returns provided since the start of the year (YTD) and over the last 12 months are very similar over longer time periods McDonald's has outperformed the Dow Jones with the outperformance widening with time. A $1000 invested in the Dow Jones 10 years ago would be worth $1729 today, the same $1000 invested in McDonald's 10 years ago would be worth $2679 today.
1 week:
- Dow Jones (DJIA): -1.23%
- McDonald's (MCD): -1.46%
1 month:
- McDonald's (MCD): 1.27%
- Dow Jones (DJIA): -0.97%
Year To Date (YTD):
- McDonald's (MCD): 9.16%
- Dow Jones (DJIA): 8.93%
1 Year:
- McDonald's (MCD): : 35.4%
- Dow Jones (DJIA):: 32.7%
5 Years:
- McDonald's (MCD): : 119.7%
- Dow Jones (DJIA): 88.9%
10 Years:
- McDonald's (MCD): : 267.9%
- Dow Jones (DJIA): 172.9%
For most of the time periods looked at the stock of McDonald's has outperformed the broader Dow Jones Industrial Average. While the returns provided since the start of the year (YTD) and over the last 12 months are very similar over longer time periods McDonald's has outperformed the Dow Jones with the outperformance widening with time. A $1000 invested in the Dow Jones 10 years ago would be worth $1729 today, the same $1000 invested in McDonald's 10 years ago would be worth $2679 today.