McDonald's Corporation (NYSE:MCD) to Issue Dividend Increase - $1.86 Per Share

Key Points

• McDonald's Corporation announced a quarterly dividend increase to $1.86 per share, a 5.1% rise from the previous dividend of $1.77.
• The dividend will be paid to shareholders of record on December 1st, with the ex-dividend date also on December 1st.
• McDonald's has a favorable payout ratio of 53.2%, indicating strong earnings coverage for the annual dividend of $7.08 per share expected next year.

McDonald's Corporation (NYSE:MCD - Get Free Report) declared a quarterly dividend on Wednesday, October 22nd. Shareholders of record on Monday, December 1st will be given a dividend of 1.86 per share by the fast-food giant on Monday, December 15th. This represents a c) annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Monday, December 1st. This is a 5.1% increase from McDonald's's previous quarterly dividend of $1.77.

McDonald's has a payout ratio of 53.2% meaning its dividend is sufficiently covered by earnings. Research analysts expect McDonald's to earn $13.26 per share next year, which means the company should continue to be able to cover its $7.08 annual dividend with an expected future payout ratio of 53.4%.

McDonald's Stock Performance

NYSE MCD opened at $310.01 on Thursday. The stock has a market capitalization of $221.22 billion, a P/E ratio of 26.56, a P/E/G ratio of 3.25 and a beta of 0.50. McDonald's has a 1 year low of $276.53 and a 1 year high of $326.32. The business's fifty day moving average is $306.58 and its two-hundred day moving average is $305.51.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.15 by $0.04. The company had revenue of $6.84 billion for the quarter, compared to analysts' expectations of $6.68 billion. McDonald's had a negative return on equity of 225.52% and a net margin of 32.21%.The firm's revenue was up 5.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.97 earnings per share. On average, research analysts forecast that McDonald's will post 12.25 earnings per share for the current year.

Analyst Ratings Changes

MCD has been the topic of several recent analyst reports. KeyCorp reissued an "overweight" rating and set a $335.00 target price on shares of McDonald's in a research note on Monday. Weiss Ratings reissued a "buy (b)" rating on shares of McDonald's in a research note on Wednesday, October 8th. Royal Bank Of Canada initiated coverage on shares of McDonald's in a research note on Wednesday, October 8th. They set a "sector perform" rating and a $320.00 target price on the stock. Melius initiated coverage on shares of McDonald's in a research note on Monday, July 14th. They set a "sell" rating and a $250.00 target price on the stock. Finally, Barclays boosted their target price on shares of McDonald's from $360.00 to $362.00 and gave the company an "overweight" rating in a research note on Wednesday. Eleven research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $324.50.

McDonald's Company Profile

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.

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