McDonald’s Co. (NYSE:MCD) Plans Quarterly Dividend of $1.77

McDonald’s Co. (NYSE:MCD) declared a quarterly dividend on Wednesday, September 25th, Zacks reports. Shareholders of record on Monday, December 2nd will be given a dividend of 1.77 per share by the fast-food giant on Monday, December 16th. This represents a $7.08 annualized dividend and a yield of 2.33%. The ex-dividend date of this dividend is Monday, December 2nd. This is a boost from McDonald’s’s previous quarterly dividend of $1.67.

McDonald’s has raised its dividend payment by an average of 7.3% annually over the last three years and has raised its dividend every year for the last 48 years. McDonald’s has a dividend payout ratio of 52.4% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect McDonald’s to earn $12.58 per share next year, which means the company should continue to be able to cover its $6.68 annual dividend with an expected future payout ratio of 53.1%.

McDonald’s Trading Up 1.1 %

McDonald’s stock opened at $303.65 on Friday. The firm has a market capitalization of $217.82 billion, a PE ratio of 25.78, a price-to-earnings-growth ratio of 3.99 and a beta of 0.72. McDonald’s has a 12-month low of $243.53 and a 12-month high of $304.29. The firm has a 50-day moving average price of $280.78 and a 200-day moving average price of $271.12.

McDonald’s (NYSE:MCD) last announced its earnings results on Monday, July 29th. The fast-food giant reported $2.97 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.07 by ($0.10). McDonald’s had a net margin of 32.25% and a negative return on equity of 178.68%. The business had revenue of $6.49 billion for the quarter, compared to analysts’ expectations of $6.62 billion. During the same quarter last year, the firm earned $3.17 EPS. The firm’s quarterly revenue was down .1% on a year-over-year basis. As a group, sell-side analysts predict that McDonald’s will post 11.69 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

MCD has been the subject of several research analyst reports. Wedbush reiterated an “outperform” rating and set a $295.00 target price on shares of McDonald’s in a research report on Monday, July 29th. Barclays decreased their target price on McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a research report on Tuesday, July 30th. Guggenheim increased their price target on McDonald’s from $280.00 to $290.00 and gave the stock a “buy” rating in a research report on Friday, August 2nd. Citigroup lifted their price objective on McDonald’s from $275.00 to $301.00 and gave the company a “neutral” rating in a report on Friday, September 13th. Finally, Deutsche Bank Aktiengesellschaft dropped their target price on shares of McDonald’s from $295.00 to $290.00 and set a “buy” rating on the stock in a report on Tuesday, July 30th. Eleven investment analysts have rated the stock with a hold rating and nineteen have given a buy rating to the company. Based on data from MarketBeat, McDonald’s presently has a consensus rating of “Moderate Buy” and a consensus target price of $308.22.

Insiders Place Their Bets

In related news, CFO Ian Frederick Borden sold 5,939 shares of the company’s stock in a transaction on Monday, September 23rd. The stock was sold at an average price of $300.04, for a total value of $1,781,937.56. Following the transaction, the chief financial officer now directly owns 20,403 shares of the company’s stock, valued at approximately $6,121,716.12. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. In related news, EVP Marion K. Gross sold 1,498 shares of the company’s stock in a transaction on Wednesday, July 3rd. The stock was sold at an average price of $248.26, for a total value of $371,893.48. Following the transaction, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at approximately $387,285.60. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Ian Frederick Borden sold 5,939 shares of the company’s stock in a transaction on Monday, September 23rd. The shares were sold at an average price of $300.04, for a total value of $1,781,937.56. Following the completion of the transaction, the chief financial officer now directly owns 20,403 shares in the company, valued at $6,121,716.12. The disclosure for this sale can be found here. Over the last three months, insiders have sold 23,958 shares of company stock valued at $7,032,111. 0.23% of the stock is currently owned by insiders.

About McDonald’s

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.