McDonald’s is a name that is known in most parts of the world, and it has been around for more than 5 decades already, serving customers around the world and consistently thinking of new ways to improve service, coverage, and technology.
McDonald’s (NYSE:MCD) is a fast-food giant that traces its beginnings back to 1940 by two brothers, putting into expanded use the principles surrounding modern fast-food restaurants that the predecessor, White Castle, put into practice two decades earlier in 1920. McDonald’s made its Initial Public Offering on April 21, 1965, and since going public, it has grown to become one of the largest fast-food franchises that executed 12 stock splits in the past 56 years.
If you invested R10 000 in McDonald’s shares in 1965, how much would they be worth today?
At the date and time of its IPO, McDonald’s shares were R332.48 per share, which means that your R10,000 would have bought you 30 MCD shares. Over the past 56 years, McDonald’s stocks experienced 12 different stock splits, which means that your 30 initial shares would have multiplied to 22,308 shares.
The first stock split that McDonald’s experienced was in 1966 and it was a three-for-two stock split, which means your 30 shares would have become 45 shares after this.
Not long after this, McDonald’s announced a 2% stock dividend in 1967 and this provided all shareholders with three additional shares. After this, McDonald’s further experienced five more three-for-two stock splits and six two-for-one stock splits, which gives you 22,308 MCD shares. At close on August 12, the price of one MCD share was R3,497.27, which means that you would have a total investment of more than R78 million, which translates to an increase of over 700,000% from McDonald’s IPO date in 1965.