McDonald’s Corporation (NYSE:MCD) Declares Dividend Increase – $1.86 Per Share

McDonald’s Corporation (NYSE:MCD) announced a quarterly dividend on Wednesday, October 22nd. Investors of record on Monday, December 1st will be paid 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 of this dividend 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 Trading Up 0.8%

Shares of MCD stock opened at $310.01 on Thursday. The stock has a market cap of $221.22 billion, a P/E ratio of 26.56, a price-to-earnings-growth ratio of 3.25 and a beta of 0.50. The stock has a 50 day simple moving average of $306.58 and a 200 day simple moving average of $305.51. McDonald’s has a 1 year low of $276.53 and a 1 year high of $326.32.

McDonald’s (NYSE:MCD) last issued 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 business had revenue of $6.84 billion during 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 for the quarter was up 5.4% compared to the same quarter last year. During the same period in the previous year, the company posted $2.97 earnings per share. Analysts forecast that McDonald’s will post 12.25 EPS for the current year.

Insider Transactions at McDonald’s

In other news, EVP Desiree Ralls-Morrison sold 2,487 shares of the firm’s stock in a transaction dated Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total transaction of $770,970.00. Following the completion of the transaction, the executive vice president directly owned 8,754 shares in the company, valued at $2,713,740. This trade represents a 22.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CMO Edith Morgan Flatley sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $315.00, for a total value of $315,000.00. Following the transaction, the chief marketing officer owned 6,858 shares of the company’s stock, valued at $2,160,270. This trade represents a 12.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 5,463 shares of company stock worth $1,692,186 over the last ninety days. 0.25% of the stock is owned by insiders.

Institutional Trading of McDonald’s

Institutional investors have recently bought and sold shares of the company. Nova Wealth Management Inc. bought a new stake in McDonald’s during the first quarter valued at $26,000. HFM Investment Advisors LLC bought a new stake in McDonald’s during the first quarter valued at $26,000. Decker Retirement Planning Inc. boosted its position in McDonald’s by 142.9% during the second quarter. Decker Retirement Planning Inc. now owns 85 shares of the fast-food giant’s stock valued at $25,000 after acquiring an additional 50 shares during the last quarter. Legacy Investment Solutions LLC bought a new stake in McDonald’s during the second quarter valued at $25,000. Finally, Abound Financial LLC bought a new stake in McDonald’s during the first quarter valued at $30,000. Institutional investors own 70.29% of the company’s stock.

About McDonald’s

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.