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

McDonald’s Corporation (NYSE:MCD) announced a quarterly dividend on Thursday, July 23rd. Investors of record on Tuesday, September 1st will be given a dividend of 1.86 per share by the fast-food giant on Wednesday, September 16th. This represents a c) dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Tuesday, September 1st.

McDonald’s has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 49 years. McDonald’s has a dividend payout ratio of 55.9% meaning its dividend is sufficiently covered by earnings. Equities analysts expect McDonald’s to earn $14.03 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 53.0%.

McDonald’s Stock Performance

MCD opened at $262.70 on Friday. McDonald’s has a 1 year low of $260.96 and a 1 year high of $341.75. The firm has a 50 day moving average price of $276.23 and a 200 day moving average price of $299.11. The company has a market cap of $186.65 billion, a PE ratio of 21.66, a price-to-earnings-growth ratio of 2.83 and a beta of 0.41.

McDonald’s (NYSE:MCD) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating analysts’ consensus estimates of $2.74 by $0.09. McDonald’s had a net margin of 31.62% and a negative return on equity of 442.10%. The firm had revenue of $6.52 billion for the quarter, compared to analysts’ expectations of $6.47 billion. During the same period in the previous year, the company posted $2.67 earnings per share. McDonald’s’s revenue was up 9.4% compared to the same quarter last year. On average, sell-side analysts predict that McDonald’s will post 12.86 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. JPMorgan Chase & Co. cut their target price on shares of McDonald’s from $325.00 to $305.00 and set an “overweight” rating on the stock in a research note on Monday, May 11th. Wells Fargo & Company lowered their price target on McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a report on Thursday, July 16th. Tigress Financial boosted their price objective on McDonald’s from $385.00 to $390.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. KeyCorp reiterated an “overweight” rating on shares of McDonald’s in a research note on Wednesday, July 15th. Finally, Deutsche Bank Aktiengesellschaft set a $325.00 target price on McDonald’s in a report on Thursday, July 9th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $334.32.

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.