Thinking about making your first stock trade? Buying shares in McDonald’s could be a good call, but we recommend you do your due diligence before taking the plunge. Successful investing requires research and a solid understanding of the investing fundamentals. We’ve produced this page, along with plenty more educational articles, to help you make smart, well-informed investments
If you think you’re ready to start investing, follow our helpful links below. If not, keep reading.
Buy McDonald’s stock, right now
If you think you’re ready to buy McDonald’s stock, click the links below to help you choose the right online broker for you. Our helpful investment guides will walk you through the best investment methods and show how to apply them when buying shares.
Trade McDonald’s shares, right now
Buying shares typically refers to a longer-term approach to investing. If you want to try a shorter-term strategy, you might choose to trade shares in McDonald’s instead. Trading shares involves buying and selling within a short period of time, aiming for shorter-term profits. We’ve reviewed numerous low-fee online brokers that will help you make the most of high-volume trading.
How to buy McDonald’s stock in 7 simple steps
Finding consistent success while investing requires patience and study. Before you buy shares in McDonald’s, get to know how the company operates, and how the stock has historically performed. Take a hard look at the stock market to see how it’s performing. Only after you’ve taken these fundamental steps does it make sense to buy shares.
At the beginning, consider investing a smaller amount of money, so you limit your risk. You can always invest more capital and try more complicated trading strategies after you gain more experience. Here’s a checklist to review before buying shares in McDonald’s.
- Know the company. What is McDonald’s? How did it grow to become the world’s largest restaurant chain? Is McDonald’s revenue and profit growth accelerating, or decelerating? Get to know all about McDonald’s, so you’ll better understand your investment target.
- Learn the basics. Learn the key terms that go with buying stocks, including bid price, ask price, market orders, and limit orders. Learn the terms that describe key measures of fundamental strength, including return on equity and profit margins. You should also get to know the different methods you can use to buy McDonald’s stock, such as share-dealing and trading.
- Share-dealing vs Trading. When share-dealing, you’re buying shares in a company. To make money through share-dealing, simply sell shares at a higher price than the one at which you bought. You can also sometimes make money from dividends, if you buy shares in a company that issues them. Trading shares is a short-term approach that can involve buying and selling shares on the same day (day trading). When day trading shares in McDonald’s, read the stock’s chart rather than fretting over the company’s long-term future.
- Set a budget. When you start investing, start with a smaller budget, something like £1,000. McDonald’s now trades near $200 a share, so you can buy five or six shares with that budget. As you gain investing knowledge, you can get more aggressive and invest more capital.
- Choose a broker. There are lots of online brokers ready to take your order. Pick one that offers a strong reputation, low transaction costs, and an easy-to-use platform.
- Evaluate the broader market. When the stock market goes up for a long time (‘bull market’), most stocks go up too. When the market goes down for a long time (‘bear market’), most stocks go down too. Follow the market’s trend, and don’t try to defy the odds.
- Make your first investment. You’ve done your research. You understand how McDonald’s operates, you get the key steps you need to take to invest, you’ve set your budget and found an online broker, and you’ve confirmed that the market is going up. Log in to your online brokerage account, type McDonald’s ticker symbol (MCD), check that the stock’s price works for your investing strategy, then buy. You just successfully bought shares in McDonald’s.
Ways to invest in McDonald’s – share-dealing vs trading
There are numerous methods you can choose to buy, sell, and trade shares in McDonald’s online. Let’s review some of them:
Share-dealing is the act of buying and then holding shares of a company while seeking a larger profit. It’s a longer-term tack than trading shares, a practice geared toward making a quick profit.
- Pros: When share-dealing, you can focus on the company’s fundamentals, rather than worrying about reading a stock chart; if shares in McDonald’s start rising, holding for longer could lead to big gains.
- Cons: Your money’s tied up for longer, which means it’s not accessible to make other trades; if shares in McDonald’s start falling after you buy, you’ll need to decide if you want to cut your losses, or try to sit through a nasty correction.
A CFD is a contract for difference. CFDs are investment derivatives that let you speculate on the price movement of investment assets. Those include forex, commodities, shares in McDonald’s, and others. When CFD trading, you own the contract, but not the actual asset you’re trading.
- Pros: With a CFD, you can trade with leverage, a practice that allows you to put down just a percentage of the total trade value, with the CFD broker covering the rest. When trading with leverage, you can bump up the value of a trade significantly.
- Cons: While CFD trading with leverage makes more money when a stock rises, it also produces a bigger loss when a stock falls. If you leave a leveraged CFD position open more than a day, you’ll likely have to pay overnight fees. CFD trading means you lose the voting rights and dividends that come with owning shares in certain companies.
The more you know, the better prepared you’ll be to make smart investments. Read our online guides, articles, and courses to enhance your investing knowledge. If you’re ready to buy, click on the links above.
How to buy, sell and trade McDonald’s shares for beginners
If you’re on the verge of buying your first stock, here are some important things to know:
An online broker is a simple platform you can use to buy shares. Buying shares is a sound approach if you want to hold for a longer period of time. Log in to your online brokerage account, type McDonald’s ticker symbol, and click Buy. You now own shares in McDonald’s.
When selling shares, you make money when you sell for a higher sum than your buy price. When selling shares you might choose to hold for as long as possible and try to sell for the biggest possible profit. On the other hand, in order to protect your investment, you may decide to sell in the event that the market takes a downturn.
You can trade shares with a conventional online broker, or with a CFD broker. With a CFD broker, it’s important to know the risks that come with leveraged trading. Also be aware of the extra fees that CFD brokers sometimes charge.
Our top tips for investing in shares in McDonald’s
You’ve learned a lot already. Here are some additional tips to follow:
- Know your budget. Don’t invest more than you can afford to lose, especially when you’re just starting out. You can always get more aggressive with time and experience.
- Choose the right approach. Find an investment strategy that suits your goals, and the amount of risk you’re willing to take.
- Stick to an investing plan; don’t react to emotions. Follow a sound investing plan and you’ll be more likely to make money in investments. Emotions such as fear and greed can cloud your judgment and cause you to make bad decisions.
- If market conditions change, pivot. If the market starts plummeting, don’t let your money vanish. Keep the state of the market in mind when making investing decisions.
- Learn from your mistakes. Everyone makes mistakes. What matters is suppressing your ego, and taking the time to learn from those mistakes. Review your trades, figure out what went wrong, then figure out how to do better next time.
Unsure which platforms to use?
Not sure where to go from here? That’s understandable. Here are some more factors to consider:
- Budget size. If you have a budget of £1,000, it’s probably best to keep things simple at first and simply buy and hold shares in McDonald’s. If you have a bigger budget (i.e. more than £10,000), you have more options, including day-trading, CFD trading, and other strategies.
- Risk assessment. Don’t try riskier investment strategies until you’ve gained more expertise. Once you reach that point, you can try more complex investing options too. For instance, you can sell shares of a stock short, betting that the price will fall. If you don’t feel ready to do that, you can buy shares, then protect your investment. Say you buy shares in McDonald’s at $200 per share. You can then put in a stop-loss order at $180 per share. That way if McDonald’s stock falls, you don’t lose more than 10%.
- Market conditions. If a bear market begins, defensive investment strategies such as bonds or commodities can become better bets than growth stocks. Of course if the market’s doing well, you can always buy shares in McDonald’s.
- Know your investing goals. If you’re trying to make money quickly, day trading could be for you. If you want to see a stock’s journey through for years to come, buy and hold shares instead.
- Follow emerging trends. A growing number of people worldwide are choosing healthier diets, as well as meat-free diets. McDonald’s has worked on evolving its core strategy by offering salads and other healthier fare to meet that growing demand. For McDonald’s’s to succeed long term it will need to find the right balance of burgers and fries, plus other menu options. Otherwise, competitors could eat into McDonald’s market share, potentially damaging the stock’s fortunes.
What is McDonald’s?
Founded in 1940, McDonald’s is the world’s largest restaurant chain. The company serves 69 million customers a day in more than 100 countries, and is the world’s second-largest private-sector employer with 1.7 million employees. For more information on the company, including charts, live prices, analysis, and more, visit our McDonald’s stock price page.
Try some of our stock market courses for beginners
Still not ready to invest? That’s ok. Get ready to learn more with our easy-to-follow educational courses. Once you’ve gained a better grasp of the nuances of investing, you’ll be better equipped to buy McDonald’s stock.