The Growing Demand for Food
Food is an important necessity. We must consume food on a daily basis. With food being consumed daily, this has caused some businesses to soar in their stock price over the years.
In 2019, McDonald’s has so many customers across numerous countries that, on a daily scale, they serve 1 in every 100 people daily.
A statistical sample was done in the US. The average household in the US spends between US$7,000-8,000 per year on food. This statistic is increasing each year.
Another survey in the US has been done on the amount people spend when they take into account the yearly income. The bottom 1/5th of the country spend between US$2,000-3,000; while the top 1/5th spend between US$13,000-14,000.
In 2019, there are more than 300 million people in the US. This represents a surging economy for food in general, including fast-food franchises. With all of these factors taken into consideration, let’s look at some restaurant companies and fast-food franchises available on the US stock market.
A Summary of Top Food Companies in The World
Here are three companies you are bound to know about on the US Stock Exchange —Domino’s Pizza (DPZ), Wendy’s Company (WEN) and McDonald’s Corporation (MCD).
On October 2014, Domino’s Pizza had a share value of around US$76 per share. In the later part of 2019, the share price hit a high of US$243.35.
On October 2014, Wendy’s had a phase where the share price was around the value of US$8 per share. In October 2019, the value was US$20.26.
In 2014, McDonald’s Corporation had a phase where the value of a share was around US$92. In October 2019, the share price reached US$210.03.
These 3 fast-food franchises shows there is a big demand for food. With the high demand from the public, and the value of the share price moving with inflation, this will essentially mean the prices will likely go up.
How Did McDonald’s Achieve Dominance in the20th Century?
When McDonald’s was originally built in 1940, Richard and Maurice McDonald were the two original founders. Their very first McDonald’s restaurant was on 14th Street in San Bernardino, California.
8 years later, Ray Kroc overhauled and modernised McDonald’s, making sweeping changes to the business. He later then took over the franchise completely.
What initially made McDonald’s unique compared to other fast-food franchises was their customer satisfaction. McDonald’s was quick in terms of delivering meals to the customer.
McDonald’s had a courtesy rule that customers whose orders took longer than a few minutes would automatically get refunded. Therefore McDonald’s could guarantee they would get their food quickly.
In 2018, McDonald’s has over 37,000 restaurants worldwide. In 2019, the company has over 1.5 million workers worldwide.
The movement in the share price for McDonald’s has always been on a steady incline, in large part because of the company’s ability to adapt themselves and make their service even better.
One example: McDonald’s introduced a spin-off called McCafe. With this in place, this allowed them to compete with coffee outlets such as Starbucks and Coffee Bean.
In the early 21st century, McDonald’s had made another sharp turn to extend their business and make it more family-friendly. They did this introducing healthier options — such as salads and wraps. Therefore, if you went to McDonald’s, you didn’t always have to eat unhealthy food.
Also, another thing that McDonald’s has introduced in the 21st century are their self-service kiosks. When they brought in the kiosks, this reduced the amount of staff needed. At the same time, this generated more revenue simultaneously because they could process more orders.
For the past 20 years, this unique business culture of innovation has kept McDonald’s on an upward swing in terms of capital growth, as well as revenue. They have the distinction of quality service that makes them different from their competitors.
There’s little doubt that McDonald’s has a promising future.