McDonald's: From a snack bar to a fast-food billionaire

• Efficient service system becomes a recipe for success • Today the most valuable fast-food chain in the world

• Shareholders are pleased about dividend payments without exception

The foundation stone for the most famous, highest-selling and probably most popular fast food chain in the world was laid on May 15, 1940 by the brothers Richard and Maurice (Dick & Mac) McDonald. On that day, the brothers opened their first restaurant together in San Bernardino, California, called McDonald's Bar-B-Q.

The Beginnings of Dick & Mac

The brothers Dick & Mac were born in New Hampshire in 1909 and 1902 as children of Irish immigrants. With the aim of becoming millionaires before the age of 50, the two started a career in the film business at an early age. When this proved relatively unsuccessful, however, the two fast-food pioneers moved to California and opened a small snack bar there. Typically for McDonald's, the chain's first restaurant also had a so-called auto-hop service or drive-in counter, which was common at the time.

However, the burger restaurant only became well-known after the end of the Second World War, when the brothers modernized the classic hamburger preparation in an innovative way. In 1948, the brothers converted their restaurant to self-service and introduced the "Speedee Service System". With the help of this system, which was based on Fordism, the brothers accelerated and rationalized the preparation of each burger. The individual steps in preparing the menus were divided up so that each employee only had to carry out a few steps in their own area of ​​expertise. Furthermore, special requests were suddenly no longer permitted and the restaurant's menu was reduced to a total of nine products. The main course was the hamburger for 15 US cents.

1954 - US expansion gains momentum

Impressed by the efficient preparation of the burgers, mixer salesman Ray Kroc approached the McDonald's brothers in 1954 and proposed a nationwide expansion. Dick & Mac believed in the great potential of a franchise chain, was persuaded to give it a try and entrusted Kroc with the task. The former mixer salesman opened his first restaurant in Des Plaines, Illinois, on April 15, 1955.

In addition to opening new restaurants, Dick McDonald also focused on ensuring that his businesses and the entire brand were highly recognizable. The burger pioneer gave his restaurants the classic red and white tiles in the interior and designed golden arches that were initially installed on the sides of the buildings. These so-called "Golden Arches", which then formed an M, became the world-famous trademark of the restaurant chain.

Since the hamburger restaurants' offerings were exactly in tune with the times, business boomed enormously in the 1950s. The expansion was so rapid that by 1959 there were already 100 fast food restaurants in the USA.

1961 - the McDonald's brothers sell their rights

The original contract between the McDonald's brothers and Ray Kroc stipulated that Kroc would take care of the expansion of the chain and the two brothers would take care of production. However, this constellation increasingly caused disputes between the business partners, and so Kroc bought the rights to the McDonald's brand from the brothers in 1961 for 2.7 million US dollars. After this deal, the two brothers only kept their first store in San Bernardino, which had to be renamed "Big M" due to the dispute with Kroc.

1965 - the IPO of the fast-food chain

Under Kroc's leadership, the fast-food chain went public on April 21, 1965. The stock, which was issued at a price of US$22.50, climbed by more than 30 percent to around US$30 on the first day of trading.

1967 - international expansion

With the help of the liquidity that the company was able to raise through its IPO, the restaurant chain began to expand internationally. In 1967, McDonald's opened its first restaurants outside the USA. Canada and Puerto Rico were among the first two countries in which the fast-food chain set up shop. In 1971, it expanded into Europe with Amsterdam and Munich. There are now more than 40,000 McDonald's branches worldwide.

A goldmine for every investor

On the stock market, the restaurant chain, which Roy Kroc acquired in 1961 for 2.7 million US dollars, now has a market capitalization of more than 200 billion US dollars. Investors who have been involved in the company since its IPO have already been able to enjoy a strong multiplication of their capital.

However, the share is not only generating enthusiasm among investors due to its price development, but also due to its generous profit distributions, which have been regularly paid to shareholders since 1976. The dividend has been increased every year without exception since 1976. With this impressive history, the company is among the elite of US dividend aristocrats.

editorial team of finanzen.net