McDonald’s Corporation (NYSE:MCD) Increases Dividend to $1.93 Per Share

by · The Markets Daily

McDonald’s Corporation (NYSE:MCD – Get Free Report) announced a quarterly dividend on Thursday, September 17th. Stockholders of record on Tuesday, December 1st will be paid a dividend of 1.93 per share by the fast-food giant on Tuesday, December 15th. This represents a c) annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Tuesday, December 1st. This is a 3.8% increase from McDonald’s’s previous quarterly dividend of $1.86.

McDonald’s has increased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 49 consecutive years. McDonald’s has a dividend payout ratio of 55.9% indicating that its dividend is sufficiently covered by earnings. Research analysts expect McDonald’s to earn $13.90 per share next year, which means the company should continue to be able to cover its $7.44 annual dividend with an expected future payout ratio of 53.5%.

McDonald’s Stock Performance

Shares of MCD stock opened at $248.10 on Friday. The stock has a 50 day moving average price of $265.51 and a 200 day moving average price of $284.11. McDonald’s has a 52-week low of $247.83 and a 52-week high of $341.75. The firm has a market capitalization of $175.57 billion, a P/E ratio of 20.16, a P/E/G ratio of 2.69 and a beta of 0.41.

McDonald’s (NYSE:MCD – Get Free Report) last released its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share for the quarter, topping analysts’ consensus estimates of $3.32 by $0.06. McDonald’s had a negative return on equity of 572.06% and a net margin of 31.72%.The business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.13 billion. During the same quarter last year, the firm posted $3.19 earnings per share. The business’s revenue was up 3.7% compared to the same quarter last year. As a group, sell-side analysts forecast that McDonald’s will post 12.87 EPS for the current year.

Key Headlines Impacting McDonald’s

Here are the key news stories impacting McDonald’s this week:

  • Positive Sentiment: McDonald’s raised its quarterly dividend 3.8% to $1.93 per share, equivalent to $7.72 annually and a yield of about 3.1%. The increase marks 50 consecutive years of dividend growth, strengthening the company’s appeal to income-focused investors. McDonald’s Marks 50 Consecutive Years of Dividend Increases
  • Positive Sentiment: BTIG reiterated a “Buy” rating, while the broader analyst consensus remains “Moderate Buy.” Citigroup also maintained a Buy rating and sees substantial potential upside despite lowering its price target from $345 to $310. McDonald’s Earns Buy Rating from BTIG Research
  • Neutral Sentiment: Management is reportedly working with franchisees on a longer-term value strategy, menu innovation and restaurant remodels to improve affordability and traffic. The plan could support a recovery, but it also highlights the difficulty McDonald’s is having attracting price-sensitive customers. McDonald’s Is Planning to Revamp Its Value Strategy
  • Negative Sentiment: U.S. traffic reportedly turned negative in July, and McDonald’s recent sales growth has weakened. Commentary pointing to execution problems and an increasingly divided consumer base raises concerns about near-term same-store sales and margins. McDonald’s CEO Admits Execution Failure
  • Negative Sentiment: McDonald’s is lagging Burger King’s recent operating momentum, intensifying investor concerns that competitors are executing better in a difficult fast-food environment. McDonald’s vs. Burger King Owner Restaurant Brands International
  • Negative Sentiment: Unusually heavy put-option activity—47,332 contracts, 66% above average—signals increased hedging or bearish speculation. Analysts have also highlighted delayed recovery prospects, while the stock has fallen roughly 18% year to date. Why Has McDonald’s Gone Quiet on Its Low-Income Customer?

About McDonald’s

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McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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