McDonald’s Inc. is making $100bn in profits this year from its $50bn investment in the world’s largest burger chain, the company said on Thursday.
McDonald’s said it was the first company in history to sell 100 million of its new $50-a-pound hamburgers a day.
McDonalds, which is also the world market leader, is one of a number of fast-food companies that are making rapid money from burger chains as they struggle to compete with the likes of Burger King Corp., Wendy’s Corp., Domino’s Pizza and Subway Corp. In addition to the burger sales, McDonald’s will spend $1bn building a $50m factory in Canada to produce the new burgers, the food giant said.
McDonald said it expects its burgers will be available by the end of this year.
The company is also spending $5.2bn on a second $50 burger plant in Mexico, and another $5bn on building a new plant in Canada, the first in the United States.
It will also expand its restaurants in China, the world.
McDonald, which has seen its share price fall to record lows over the past two years, will continue to raise money for the burger maker by issuing $5 notes in the next few months, the most since 2008.
McDonald has sold about $50.3bn in burgers since 2008, the year it launched the first.
The fast-casual chain’s profit will be about $11.3 billion this year, up from $7.6 billion last year, McDonald said in a statement.
McDonald announced a $1.8bn dividend in February, its biggest payout in years.
McDonald added more than $10bn to its cash pile last year from a $5 billion stock buyback and a $500m cash dividend.
Shares rose by 4.3% on Thursday to $58.96, and they closed at $62.85 on the New York Stock Exchange.
McDonald reported a profit of $541.4 million in the first quarter of 2017, the lowest figure in the company’s history.