McDonald’s: A Fast-Food Fortune

Right, McDonald’s. Let’s talk about it. Because honestly, sometimes I look at my portfolio and think, “You know what? Maybe I should have just bought a lifetime supply of Big Macs.” It’s a thought. Back in 1965, when Ray Kroc took the company public, he promptly bought a ranch. A 220-acre ranch. Good for him. The shares jumped 35% within 24 hours. A perfectly reasonable response, really. It’s not like people were expecting a global empire built on golden arches and questionable meat quality.

But here’s the kicker. That initial investment? Multiply it by, oh, just a little over a million percent. 1,051,600% to be precise, as of January 30th. I mean, seriously? That’s the kind of return that makes you question all your life choices. Like, maybe I should have skipped that art history degree and just…invested in fries.

A Rally Interrupted by Skeptics (and Common Sense)

It’s funny, isn’t it? Even with that kind of growth, people kept doubting McDonald’s. A 1978 New York Times article, bless their cotton socks, noted the “uninterrupted” earnings growth but predicted competitors would “gnaw at the company’s markets.” Like a fast-food shark. How original. Ten years later, the same paper was eating its words, reporting doubled sales and plans for 500 new restaurants. They were up 10% year-over-year, raking in $113.6 million. Now? $2.02 billion in earnings and $6.39 billion in sales. A 1,900% jump in quarterly earnings. I’m starting to feel inadequate. My quarterly earnings consist of a slightly dented loyalty card at the local coffee shop.

And the second-guessing continued. Warren Buffett, the oracle himself, dumped shares in ’98. Bill Ackman trimmed his position in ’06. Apparently, even the titans of finance have moments of clarity. The New York Post, in a particularly scathing article titled “Big Mac Whack,” claimed company-owned stores had lost $60 million. Ouch. Honestly, sometimes I think the financial press just enjoys being dramatic.

But the most wonderfully pessimistic prediction came in 2014. Janney Capital Management, with a report titled “That’s Not Ketchup…It’s Blood,” predicted a “small” chance of a rebound after two months of falling sales. Share prices have since risen 360%. The irony is almost painful. Almost.

So, How Much Is That McNugget Worth Today?

Let’s do some math, shall we? Because I’m excellent at math when it involves potential windfalls. A $100 investment in 1965 would have bought you roughly 4.44 shares. Those shares, after 12 splits, would now be around 3,237. And worth…approximately $1,021,306. Over a million dollars. I’m officially reconsidering my career path. Maybe I should open a McDonald’s franchise. Or just…eat a lot of McDonald’s. That seems more appealing, honestly.

But it doesn’t stop there. 49 years of dividend increases. That’s $24,081 a year in dividends. Just for holding the shares. And they’re likely to hit a dividend milestone that only one in 1,000 companies achieves. It’s a bit intimidating, if I’m honest. Like, what have I been doing with my life?

McDonald’s hasn’t had a smooth ride, mind you. But for long-term investors? It’s been…life-changing. A testament to a unique brand, decades of international expansion, and a knack for consistently surprising everyone. And me? I’m going to go calculate how many Big Macs $1,021,306 will buy. For research purposes, naturally.

2026-02-01 17:04

A Rally Interrupted by Skeptics (and Common Sense)

So, How Much Is That McNugget Worth Today?

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