McDonald's Corporation (NYSE:MCD) Announces Quarterly Dividend of $1.93

Key Points

• McDonald’s declared a quarterly dividend of $1.93 per share, payable December 15 to shareholders of record December 1. The payment is a 3.8% increase from the prior $1.86 dividend and extends the company’s annual dividend-growth streak to 49 years.
• McDonald’s reported quarterly EPS of $3.38, exceeding analyst expectations of $3.32, while revenue rose 3.7% year over year to $7.10 billion, slightly below estimates.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $316.39, although several firms recently lowered their targets. Shares opened at $248.50, near the stock’s 52-week low of $247.83.

McDonald's Corporation (NYSE:MCD - Get Free Report) declared a quarterly dividend on Thursday, September 17th. Shareholders 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) dividend on an annualized basis and a 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%per year over the last three years and has increased its dividend annually for the last 49 consecutive years. McDonald's has a 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 Price Performance

MCD stock opened at $248.50 on Friday. The stock has a market capitalization of $175.85 billion, a price-to-earnings ratio of 20.19, a PEG ratio of 2.69 and a beta of 0.41. The business's fifty day moving average price is $265.51 and its two-hundred day moving average price is $284.11. McDonald's has a fifty-two week low of $247.83 and a fifty-two week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Tuesday, August 4th. The fast-food giant reported $3.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.32 by $0.06. McDonald's had a net margin of 31.72% and a negative return on equity of 572.06%. The company had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.13 billion. During the same quarter in the previous year, the business posted $3.19 earnings per share. McDonald's's quarterly revenue was up 3.7% on a year-over-year basis. Research analysts expect that McDonald's will post 12.87 EPS for the current year.

Analyst Ratings Changes

MCD has been the subject of several analyst reports. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of McDonald's from $325.00 to $300.00 and set a "buy" rating for the company in a research note on Monday. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $295.00 target price on shares of McDonald's in a report on Wednesday, August 5th. Robert W. Baird upgraded shares of McDonald's to a "hold" rating in a research report on Monday, August 24th. Morgan Stanley cut their price target on McDonald's from $319.00 to $308.00 and set an "equal weight" rating for the company in a research note on Monday. Finally, KeyCorp reduced their price target on McDonald's from $315.00 to $305.00 and set an "overweight" rating on the stock in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $316.39.

About McDonald's

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.