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How to buy
If you live in Australia, a great way to invest in McDonald's shares is, definitely, this popular broker.
eToro*, one of the main brokers around the world, is registered and licensed, among others, by the United Kingdom's Financial Conduct Authority (FCA).
We recommend eToro because you can create an account for free with this broker, and its fees for trading online are very low. Besides, eToro is available in our language, accepts users from Australia, it is really easy to manage, and its friendly interface is ideal for those who are starting to trade with cryptocurrencies and stocks.
How to sign up, step by step
The first thing you need to do is click here and fill in the fields on the right: enter your name, email, and set a password.
Now check your email inbox: you should have received an email from eToro, click on the button and your account will be verified.
Once on eToro, you just have to click on “Deposit funds”, in the page menu.
There, you can choose how much money you want to add to your account (the minimum is $ 200) and the payment method:
As you can see in the image, the first deposit can be made by credit card, PayPal, or bank transfer.
How to make your first purchase
When eToro has confirmed the receipt of your credit, you just have to search for “McDonald's” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
*67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Is McDonald's a buy?
McDonald's Corporation is an American company known for its hamburger restaurants around the world. It was founded by brothers Richard and Maurice McDonald in 1940, who first implemented the fast food concept inspired by Henry Ford.
Initially, the McDonald brothers did not have as broad a business vision as the company has today. It was Ray Kroc who would take the company to success, becoming the first successful McDonald's franchisee in 1955.
By 1960, Kroc would buy the company from the McDonald brothers for 2.7 million dollars, thus becoming the owner of the company. Since then, the company has grown to more than 36,000 restaurants in 118 countries. Ray Kroc turned the company into one of the most successful companies worldwide, although its real business is not hamburgers.
McDonald's business model: hamburgers or real estate?
Although McDonald ‘s is a fast food restaurant chain that primarily sells hamburgers, most of its revenue does not come from selling food, but rather from renting its properties, i.e., real estate.
Only 5% of the restaurants are wholly owned by the company, the rest are franchises that operate almost like any other well-known franchise. That is, the franchisee pays the brand (McDonald's) to have the rights to use the brand to make a profit.
Thus, McDonald's gets paid for the franchise, is the supplier of the restaurant and also gets a share of the monthly profits of each restaurant. But in addition to this, McDonald's gets paid rent for the space where the franchise is located since the company owns all the locations.
Each time a new McDonald's opened, the company would first buy the land and fit out the location and give the franchisee the finished restaurant. Thus, the franchisee is only responsible for the management and operation of the restaurant.
This is how McDonald's came to own more than 36 locations that it rents to its franchisees as part of the franchise agreement. And that is why, although the company only fully manages 5% of the restaurants, it generates annual profits in excess of 20 billion dollars.
And this allows it to offer attractive dividends to holders of company stock (dividends are the portion of profits distributed to investors) that have historically increased year after year. As a result, McDonald's is a company that every investor tends to include in his or her portfolio.
eToro, our favorite broker for buying McDonald's shares from Australia?
- It takes other users successful investment strategies so you can emulate them
- Accepts short-trading
- It's very easy to use
- You can leverage
- Allows you to make investments in thousands of different goods
Official page in English: www.etoro.com *
You should absolutely consider eToro if you are interested in investing in McDonald's from Australia.
This broker is popular for making “social trading” fashionable, a revolutionary form of investing in which investors can imitate the movements of other traders who have been generating income over time.
If you are a novice user or haven't gained much investment experience, eToro is very helpful. You can rest assured that you will be making a smart investment since the site emulates those from subjects with a long profit record. Oppositely, if you are an expert in the subject and decide to share your abilities with the community, eToro pays you for it.
It is also very convenient how accessible is this platform, excellent for new traders who are taking their first steps in the investment world.
How does a demo account work?
In case you are beginning as an investor, the option to operate in “demo” mode will be helpful. Setting a virtual account and trading with fictional funds is very simple.
This can be a great way of gaining experience and confidence before starting to trade with real money. You will have an amount of $ 100.000 (“fake” or virtual, of course) to begin with, and you can operate with all the different assets available on eToro, not only with McDonald's.
If your performance is not that good and you lose your funds, you can always ask the platform to replenish $ 100k of virtual balance. Possibly on the second try you will improve a lot.
Keep in mind that investing is mainly about being cold-minded, and using a virtual account might have the opposite effect. It is not the same to trade with your own money than with fake funds, which you can lose without any consequences.
Evidently, the virtual mode is kind of pointless if you want to trade in the medium or long-term (which almost assures you a profit only by replicating an index), since you would be wasting years. Virtual accounts may be useful for practicing short or medium-term investments.
We said before that eToro is very easy to manage. Anyone can start using it without having to read endless explanations.
Everyone who has previously used Instagram, Facebook or any of the most common social networks, has enough knowledge to operate with the eToro interface.
We will explain, roughly, the registration steps and the different sections that you will find on the platform.
When you register, you will have to enter your personal data, like first name, last name or address.
Additionally, you will have to answer some questions about your experience as an investor.
But don't feel intimidated, it is not a test that you have to pass. They only intend to find out about your previous experience and knowledge to determine which instruments to recommend for you.
You will see a bar that says “incomplete profile” until you fill in all the information.
Let's see what the different sections of the page are.
With the “Set Price Alerts” tool, you'll be able to program an alarm when an asset is at a certain price. Just click the tab and you will be able to set it. This is ideal in case you want to buy an asset and you are waiting for it to decrease.
In “News Feed”, users interact and share opinions, tips, and other valuable information.
“Instruments”, “People” and “CopyPortfolios” are within “Discover”. And we already discussed the kinds of assets on eToro:
- Exchange-Traded Funds
- Forex trading
- Index funds
The term “social trading” comes to life in the section “People”: there, you can duplicate the movements of any user you choose. You'll be able to see all their profiles and historical performances.
Using the search bar, you can find the investors that you find more interesting: by risk level, types of instruments, average earnings… You just have to type the amount you want to invest and eToro will replicate the movements made by the investor you chose, in proportion. This means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will invest $ 100 of your money in the same asset.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
Sometimes it might be preferable to copy from CopyPortfolios than to individuals, since the former offer more diversity. Besides, the different portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … You think that a certain industry is going to have success anytime soon? Then you will surely find a CopyPortfolio about it.
What is social trading?
The first platform that thought of trading as a social activity was eToro, and the idea spread like wildfire. Other brokers have also adopted this concept, but we have tried them all and eToro is way better.
But it wasn't just about creating yet another social network to talk about investment. The main achievement was in allowing users to copy the moves of advanced investors, and to reward the latter for their ideas and knowledge.
When you access eToro you will find in the left menu the options “Copy People” and “Invest in CopyPortfolios”.
“CopyPortfolios” are kinds of exchange-traded funds or thematic index funds, a portfolio that bundles a number of financial assets in a certain sector. For instance, if you consider that a particular sector will succeed in the near future but you don't know which stocks to invest in, you just have to choose a portfolio that includes a variety of related companies in that industry.
CopyPortfolio has generated a 100% return in the last twelve months, and the only thing you have to do is to click on “Invest”, select the amount, place the stop-loss and wait.
But you can also copy other users of the platform who are successful investors. It is really simple: you can find them with “Copy People” and just replicate their moves.
You will find in the profile of users: the type of financial instruments they trade (forex, cryptocurrencies, raw materials, stocks…), their risk profile, and their performance history.
Besides copying other investor's strategies, which is great and very helpful, we also suggest that you make the most out of the community by reading other user's comments. You can learn a lot from their experiences and knowledge, particularly if your goal is to make a living from investments.
Frequently asked questions
* Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.