Who Owns McDonald’s?

Who Owns McDonald’s? Different shareholders own McDonald’s, as it’s a publicly traded company. According to Yahoo Finance reports, most of this company’s owners are institutional investors, who make up 73.16% of the outstanding shares. Individual owners only make up about 0.18%. 

McDonald’s remains one of the world’s most recognizable fast food chains today. According to one study, about 7% of all Americans consume a meal from this fast food chain daily. This amounts to approximately 80% of all Americans eating at a McDonald’s franchise yearly. 

This success has led investors to cumulatively own about 716.62 million outstanding shares, which gives it an estimated market cap of $211.46 billion. The largest shareholder of McDonald’s is The Vanguard Group, Inc., which has a 9.72% stake in the company, valued at $20.61 billion at the time of writing.

This article will cover McDonald’s owners and its largest shareholders. We’ll also look at some of the companies that McDonald’s owns. 

A Brief History of McDonald’s Ownership

The first McDonald’s restaurant opened in 1940 after two brothers, Maurice (Mac) and Richard McDonald, converted their hot dog stand idea into a burger restaurant focused on speed and efficiency. 

Based in San Bernardino, California, McDonald’s soon received a revamp after the two brothers decided to renovate their restaurant to produce vast quantities of food at low prices. They developed the “Speedee Service System,” the precursor to the modern fast-food restaurant.

This system emphasized a simple menu featuring only hamburgers, potato chips (later replaced by french fries), and the infamous pie. The brothers purchased the appliances for McDonald’s from a milkshake salesman named Ray Kroc. 

In 1954, Kroc recognized the potential for nationwide franchising the McDonald’s concept. He struck a deal with the brothers, establishing 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 the owner of McDonald’s. He paid approximately $2.7 million to the brothers as he grew increasingly frustrated with how the restaurant was run and wanted to control it himself. 

Under Kroc’s ownership, the company experienced rapid growth, fueled by his commitment to expansion. The only viable option that made sense was to go public because it allowed the company to garner sizable investments for expansion.

McDonald’s IPO

On January 21st, 1965, the fast-food giant opened its doors to public investment. Much to Kroc’s liking, the reception was overwhelmingly positive. The IPO garnered the attention of all these individual and institutional investors, who quickly snapped up the shares.

The IPO saw the shares priced at $22.50 per share, with the underwriters selling 2.6 million shares of common stock. By investment standards, the IPO was seen as a significant success, as the shares quickly rose to $30 per share on the first day of trading. This move saw the company raise $6 million in capital from the offering.

Before the IPO, McDonald’s was already an established company. However, it was more of a regional chain with several locations across the United States. The IPO provided the capital needed to fund the company’s expansion. True to that, McDonald’s grew to become one of the world’s most recognizable fast food brands as they soared high, opening thousands of locations across the globe. 

McDonald’s Owners and Largest Shareholders

According to Statista, McDonald’s had about 41,800 restaurants worldwide as of 2023. They operate in about 120 countries and territories, generating about $25.938 billion in revenue as of 2023. 

The company has about 2 million people working across all its franchises worldwide. The U.S. is the highest McDonald’s revenue contributor, generating about $10.38 billion yearly. Here are the largest shareholders and owners of McDonald’s. 

The Vanguard Group, Inc.

One of The Vanguard Group’s standout holdings is its significant ownership in McDonald’s Corporation. Reports indicate that Vanguard owns approximately 64.69 million shares of McDonald’s, accounting for a 9.73% stake. This position, valued at roughly $20.61 billion at the time of writing, establishes Vanguard as the largest shareholder of the fast-food giant, showcasing its strategic focus on impactful investments.

Beyond individual holdings, Vanguard is a global leader in asset management, offering a broad range of investment services. These include management and advisory solutions for equity and fixed-income groups and services for mutual funds, separate account institutional clients, and investment pooled vehicles. Since its founding in 1975, Vanguard has played a critical role in shaping the financial landscape.

Vanguard’s influence is unparalleled, with a global presence spanning Asia, Europe, and the Americas. Its estimated global assets under management (AUM) of $10.1 trillion highlight the scale and significance of its operations, solidifying its position as one of the largest asset management firms in the world.

SSgA Funds Management, Inc.

Founded in 2001, SSgA Funds Management, Inc., is an investment firm that offers various services, including portfolio management, investment advisory services, and financial planning. SSgA stands for State Street Global Advisors. And just like The Vanguard Group, SSgA also operates globally. 

According to its official website, SSgA operates in 57 countries, with about $4.73 trillion in assets in management, making it the fourth-largest asset management company in the world. It has over 2000 institutional clients and over 32 million direct client participants. 

According to Yahoo Finance, SSgA is the second-largest institutional owner of McDonald’s, with an estimated stake of 4.82%. This represents 34.57 million shares owned, bringing the total valuation of its stake to $10.23 billion at the time of writing. 

BlackRock Fund Advisors

Founded in 1988, BlackRock Fund Advisors is an American multinational investment company headquartered in Midtown Manhattan, New York. It’s one of the leading investment firms in the world with a strong reputation for offering financial services such as investment management, portfolio advice, and financial planning. 

Although the exact number of assets under its management is unknown, sources estimate it has over $10 trillion in AUM as of 2022. Simply known as BlackRock, this investment firm serves a diverse client base, including individual investors, financial advisors, pension plans, endowments, and foundations.

Yahoo Finance reports rank this firm as the second-largest stockholder of the McDonald’s company, with a 7.01% stake. This represents about 50.21 million shares owned, which equates to a total valuation of $14.9 billion. 

But that’s not the only company in which they have a significant stake. ​​According to recent reports, the company is a major shareholder in many of the world’s largest companies, 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 $1.4 trillion in assets across diverse investment strategies for its clients. The firm is known for its rigorous, research-driven investment process and long-term investing approach.

One of the firm’s notable investments is its stake in McDonald’s Corporation. Wellington has held shares of the fast-food giant for several years and has continued to increase its position over time. Yahoo Finance puts this firm as the seventh-largest shareholder of McDonald’s with a 2.10% stake, equating to a total valuation of $4.46 billion.

The investment aligns with the firm’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 its official web page, Geode Capital Management LLC has over $1.5 trillion AUM. 

As of its latest filing, Geode Capital holds a significant stake in McDonald’s, one of its largest positions. According to reports, Geode Capital Management LLC has a 2.22% stake in the giant food chain company, representing a $4.7 billion valuation. 

J.P. Morgan Investment Management

J.P. Morgan Investment Management is a division of JPMorgan Chase, a global financial services firm. It is one of the world’s oldest investment and asset management companies, formed in 1935. 

The division provides investment solutions to institutions, governments, and individuals worldwide. J.P. Morgan Investment Management has a strong focus on asset management and is one of the largest investment managers in the world.

J.P. Morgan Investment Management is a significant shareholder of the fast food giant. According to CNN, J.P. Morgan Investment Management is the fourth-largest shareholder of the McDonald’s Corporation with a 3.68% which equates to $7.8 billion at the time of writing.

The company has been investing in McDonald’s for several years and sees it as a solid long-term investment due to its strong brand, consistent financial performance, and global presence.

Christopher J. Kempczinski

Christopher J. Kempczinski, the Chairman and CEO of McDonald’s Corporation, is a prominent shareholder with a vested interest in the company’s success. As of November 30, 2024, his estimated net worth is at least $13 million, primarily attributed to his ownership of approximately 43,256 McDonald’s Corp stock shares.

This substantial stake reflects his financial commitment to the company and his integral role in shaping its strategic direction. Under Kempczinski’s leadership, McDonald’s continues strengthening its position as a global fast-food leader, aligning shareholder interests with long-term corporate growth.

Joseph M. Erlinger

Joseph Erlinger is the President of McDonald’s USA. He oversees the business operations of all 14,000 McDonald’s restaurants in the U.S. According to Benzinga, Joseph has about 8,000 units of common stock shares in McDonald’s.

Ian Frederick Borden

Ian Borden is the Executive Vice President and Chief Financial Officer at McDonald’s. He’s primarily responsible for the company’s financial position, as he oversees the finances of more than 41,000 restaurants in over 100 countries worldwide. 

He’s one of the longest-serving members of the McDonald’s family, as his union with the company dates back 30 years. Benzinga estimates that he owns over 7,000 McDonald’s corporation’s standard stock units.

A Global Community Built on Ownership and Expansion

McDonald’s success has been shaped by its ability to adapt and connect with its global community. Its early focus on menu items like hamburgers and fries evolved into an expansive offering, including popular chicken options. Meanwhile, the company’s emphasis on franchising empowered entrepreneurs worldwide, giving them the right to operate McDonald’s restaurants while upholding its values.

Through its website and other platforms, McDonald’s continues to share content and news that resonate with its diverse audience. Stories of innovation, sustainability, and its leadership team reinforce the brand’s commitment to delivering a unique fast-food experience. Today, McDonald’s remains a testament to the power of ownership, franchising, and community-building in creating a global icon.

Conclusion

McDonald’s is a publicly traded company, with a considerable percentage of its shareholders being institutional. The top 5 institutions with the most significant stake in McDonald’s include The Vanguard Group, Inc., SSgA Funds Management, Inc., BlackRock Fund Advisors, Wellington Management Co. LLP, and Geode Capital Management LLC. 

Top executive individuals in the company also have a significant stake, but overall, they make up a mere 0.18% of the total ownership of the McDonald’s Corporation. Joseph M. Erlinger, Chris Kempczinski, and Ian Frederick Borden are some of the few individual owners with a significant stake in the company. 

The fast-food giant has a long history of successful operations, and its success is evident in its global reach and impressive financial performance. While the company’s management team and board of directors play a crucial role in guiding its strategy and direction, the shareholders ultimately can determine its future through their ownership of the company’s stock.