McDonald’s Corporation (NYSE:MCD) Declares $1.86 Quarterly Dividend

McDonald’s Corporation (NYSE:MCD) announced a quarterly dividend on Wednesday, May 20th. Shareholders of record on Tuesday, June 2nd will be given a dividend of 1.86 per share by the fast-food giant on Tuesday, June 16th. This represents a c) annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, June 2nd.

McDonald’s has increased its dividend by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 49 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 $14.14 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 52.6%.

McDonald’s Stock Performance

MCD opened at $280.39 on Thursday. The firm’s fifty day moving average is $301.43 and its two-hundred day moving average is $309.54. The firm has a market cap of $199.22 billion, a PE ratio of 23.12, a price-to-earnings-growth ratio of 2.79 and a beta of 0.43. McDonald’s has a twelve month low of $271.98 and a twelve month high of $341.75.

McDonald’s (NYSE:MCD) last posted its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping the consensus estimate of $2.74 by $0.09. The company had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The business’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same period last year, the business posted $2.67 earnings per share. Equities analysts forecast that McDonald’s will post 12.94 EPS for the current fiscal year.

Insider Buying and Selling at McDonald’s

In other news, EVP Jonathan Banner sold 6,201 shares of the stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the completion of the sale, the executive vice president owned 2,291 shares of the company’s stock, valued at $763,567.39. This represents a 73.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 333 shares of the firm’s stock in a transaction on Thursday, April 23rd. The shares were sold at an average price of $302.72, for a total transaction of $100,805.76. Following the completion of the transaction, the insider directly owned 8,067 shares of the company’s stock, valued at approximately $2,442,042.24. This trade represents a 3.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 12,119 shares of company stock valued at $3,945,973 in the last three months. 0.26% of the stock is owned by insiders.

Institutional Investors Weigh In On McDonald’s

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MCD. Norges Bank acquired a new stake in McDonald’s in the 4th quarter valued at $2,890,438,000. Diamant Asset Management Inc. increased its stake in McDonald’s by 30,979.0% in the 1st quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant’s stock valued at $806,917,000 after buying an additional 2,587,986 shares during the last quarter. J. Stern & Co. LLP increased its stake in McDonald’s by 9,867.5% in the 4th quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant’s stock valued at $776,608,000 after buying an additional 2,515,515 shares during the last quarter. Viking Global Investors LP increased its stake in McDonald’s by 171.7% in the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant’s stock valued at $913,157,000 after buying an additional 1,974,998 shares during the last quarter. Finally, Franklin Resources Inc. increased its stake in McDonald’s by 36.6% in the 3rd quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant’s stock valued at $1,336,155,000 after buying an additional 1,179,244 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors and hedge funds.

About McDonald’s

McDonald’s Corporation (NYSE: MCD) is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald’s serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand’s national and international expansion.