Raymond Albert Kroc (October 5, 1902 – January 14, 1984) was an American businessman who purchased McDonald’s from its founders, the McDonald brothers, in 1961. Serving as CEO from 1967 to 1973, Kroc is credited with the brand’s global expansion, making it the most successful fast food corporation by revenue.
Initially working as a paper cup salesman and later as a milkshake mixer salesman, Kroc was inspired by the efficiency of a hamburger restaurant in San Bernardino, California. After retiring, he owned the San Diego Padres until his death in 1984.
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Ray Kroc Net Worth
Ray Kroc had a net worth of $600 million. In 2020, a 554-acre property he once owned in Santa Ynez Valley was listed for $29 million. Known locally as “the hamburger,” Kroc and his wife Jane purchased the property in 1965 for $600,000, shortly after McDonald’s first went public, making Kroc a millionaire.
They named it the “J and R Double Arch Ranch.” Kroc built several impressive structures on the land, using it for McDonald’s research and as a vacation retreat for himself and trusted executives.
Early Life
Raymond Kroc was born in Oak Park, Illinois, to Czech-American parents Rose Mary and Alois “Louis” Kroc. Alois, originally from Czech Republic, amassed wealth in land speculation during the 1920s but lost it all in the 1929 stock market crash.
During World War I, Kroc, at just 15, lied about his age to serve as a Red Cross ambulance driver. Throughout the Great Depression, he held various jobs, including selling paper cups, working as a real estate agent in Florida, and playing piano in bands.
Career
After World War II, Ray Kroc began selling milkshake mixers, leading him to the McDonald brothers, Richard and Maurice, who had founded the original McDonald’s. Kroc was hired as a franchise agent and eventually bought the brothers out in 1961 for $2.7 million, gaining full control of the corporation.
He revolutionized the fast-food industry by implementing strict controls over franchise locations, ensuring consistency in cleanliness and menu offerings. With help from financial advisor Harry Sonneborn, Kroc expanded McDonald’s to 7,500 outlets in the U.S. and 31 countries, valuing the corporation at $8 billion.
Personal life
Ray Kroc was first married to Ethel Fleming from 1922 until their divorce in 1961. He then wed Jane Dobbins Green in 1963, but this marriage also ended in divorce by 1968.
Kroc remained married to his third wife, Joan Kroc, until his death. Throughout her life, Joan donated a significant portion of the Kroc estate to various charities. When she passed away in 2003, she was worth $3 billion, having given nearly all her fortune to charity, including $1.5 billion to The Salvation Army.
Did the McDonald brothers get their 1%?
Contrary to popular belief, the McDonald brothers did receive a percentage of the profits. Initially, the agreement was that 1.9% of a franchisee’s profits would go to McDonald’s Corporation. Out of this, 0.5% went to the McDonald brothers.
Conclusion
Ray Kroc’s legacy is undeniable. From a simple introduction to a fast-food restaurant in San Bernardino, he constructed an empire that changed how the world eats. The story of Ray Kroc and McDonald’s is a testament to what vision, innovation, and sheer determination can achieve.
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FAQs about Ray Kroc’s Net Worth
- Who really founded McDonald’s? – While Ray Kroc is often credited with founding McDonald’s, the original concept and restaurant were created by Richard and Maurice McDonald.
- How did Ray Kroc revolutionize the fast-food industry? – Kroc introduced standardized menus, efficient assembly-line systems, strict franchisee rules, and aggressive expansion strategies.
- What was Ray Kroc’s personal net worth at the time of his death? – Approximately $600 million.
- How much did Kroc buy the McDonald’s brand for? – He bought it for $2.7 million in 1961.
- Why did the original McDonald’s close down? – After Kroc’s buyout, he opened a new McDonald’s near the original, leading to competition that eventually shut down the original “Big M” site.
