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McDonald's Increases Dividend by 6% to Reward Its Investors
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McDonald’s Corporation (MCD - Free Report) announced a 6% increase in its quarterly cash dividend. This was a strategic move to reaffirm the company’s commitment to its shareholders. MCD declared a dividend of $1.77 per share of common stock, payable on Dec. 16, 2024, to its shareholders of record as of Dec. 2.
This marks yet another sign of McDonald's continued confidence in its "Accelerating the Arches" growth strategy and the company’s ability to generate sustainable long-term profitability.
The 6% increase brings the annual dividend payout to $7.08 per share. McDonald’s has a robust track record of rewarding its shareholders. The company has raised its dividend for 48 consecutive years since the first issued in 1976. This consistency underscores MCD's commitment to returning capital to its shareholders while balancing investments in growth opportunities.
McDonald's capital allocation strategy is focused on fueling growth while delivering strong returns to its shareholders. Along with dividends, the company has a history of share repurchases, which further demonstrates its dedication to returning free cash flow to investors over time.
The company’s decision to boost its dividend reflects confidence in MCD’s financial health and long-term outlook. The "Accelerating the Arches" strategy, which includes innovations in menu offerings, digital expansion and operational efficiency, has been key to driving profitability and maintaining McDonald’s leadership in the fast-food industry.
In the past three months, the stock has gained 16.4% compared with the industry’s 8.4% growth.
Image Source: Zacks Investment Research
Conclusion
McDonald’s latest dividend increase showcases its solid financial position and commitment to shareholder returns. With a strong growth strategy in place, consistent dividend raises and a long history of rewarding shareholders, McDonald’s remains a reliable option for income-focused investors. As the company continues to balance growth investments with capital returns, its financial outlook appears poised for success in the years to come.
However, the Zacks Rank #4 (Sell) company is negatively impacted by dismal comps and high costs. In second-quarter 2024, global comps declined 1% against a rise of 11.7% in the prior-year quarter. The company’s comps decreased for the first time after increasing in thirteen straight quarters.
Texas Roadhouse has a trailing four-quarter earnings surprise of 0.4%, on average. TXRH’s shares have risen 89.6% in the past year. The Zacks Consensus Estimate for TXRH’s 2024 sales and EPS indicates 15.6% and 39.2% growth, respectively, from the year-earlier actuals.
Potbelly Corporation has a trailing four-quarter earnings surprise of 77.5%, on average. The stock has gained 2.2% in the past year. The Zacks Consensus Estimate for PBPB’s fiscal 2024 EPS implies 33.3% growth on 6.5% lower revenues from the year-ago levels.
El Pollo Loco Holdings has a trailing four-quarter earnings surprise of 21.6%, on average. LOCO’s shares have risen 52.9% in the past year. The Zacks Consensus Estimate for LOCO’s fiscal 2024 sales and EPS indicates 2% and 12.7% growth, respectively, from the prior-year reported figures.
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McDonald's Increases Dividend by 6% to Reward Its Investors
McDonald’s Corporation (MCD - Free Report) announced a 6% increase in its quarterly cash dividend. This was a strategic move to reaffirm the company’s commitment to its shareholders. MCD declared a dividend of $1.77 per share of common stock, payable on Dec. 16, 2024, to its shareholders of record as of Dec. 2.
This marks yet another sign of McDonald's continued confidence in its "Accelerating the Arches" growth strategy and the company’s ability to generate sustainable long-term profitability.
The 6% increase brings the annual dividend payout to $7.08 per share. McDonald’s has a robust track record of rewarding its shareholders. The company has raised its dividend for 48 consecutive years since the first issued in 1976. This consistency underscores MCD's commitment to returning capital to its shareholders while balancing investments in growth opportunities.
McDonald's capital allocation strategy is focused on fueling growth while delivering strong returns to its shareholders. Along with dividends, the company has a history of share repurchases, which further demonstrates its dedication to returning free cash flow to investors over time.
The company’s decision to boost its dividend reflects confidence in MCD’s financial health and long-term outlook. The "Accelerating the Arches" strategy, which includes innovations in menu offerings, digital expansion and operational efficiency, has been key to driving profitability and maintaining McDonald’s leadership in the fast-food industry.
In the past three months, the stock has gained 16.4% compared with the industry’s 8.4% growth.
Image Source: Zacks Investment Research
Conclusion
McDonald’s latest dividend increase showcases its solid financial position and commitment to shareholder returns. With a strong growth strategy in place, consistent dividend raises and a long history of rewarding shareholders, McDonald’s remains a reliable option for income-focused investors. As the company continues to balance growth investments with capital returns, its financial outlook appears poised for success in the years to come.
However, the Zacks Rank #4 (Sell) company is negatively impacted by dismal comps and high costs. In second-quarter 2024, global comps declined 1% against a rise of 11.7% in the prior-year quarter. The company’s comps decreased for the first time after increasing in thirteen straight quarters.
Key Picks
Some better-ranked stocks in the Zacks Retail-Wholesale sector are Texas Roadhouse, Inc. (TXRH - Free Report) , Potbelly Corporation (PBPB - Free Report) and El Pollo Loco Holdings, Inc. (LOCO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Texas Roadhouse has a trailing four-quarter earnings surprise of 0.4%, on average. TXRH’s shares have risen 89.6% in the past year. The Zacks Consensus Estimate for TXRH’s 2024 sales and EPS indicates 15.6% and 39.2% growth, respectively, from the year-earlier actuals.
Potbelly Corporation has a trailing four-quarter earnings surprise of 77.5%, on average. The stock has gained 2.2% in the past year. The Zacks Consensus Estimate for PBPB’s fiscal 2024 EPS implies 33.3% growth on 6.5% lower revenues from the year-ago levels.
El Pollo Loco Holdings has a trailing four-quarter earnings surprise of 21.6%, on average. LOCO’s shares have risen 52.9% in the past year. The Zacks Consensus Estimate for LOCO’s fiscal 2024 sales and EPS indicates 2% and 12.7% growth, respectively, from the prior-year reported figures.