McDonald’s Corporation (MCD), the leading fast food chain, has been consistently enhancing its shareholders’ return by way of dividend and share repurchases. The company has paid dividends for 33 consecutive years and has increased the dividend amount every year.
Recently, the company announced a 10% increase in its quarterly dividend, bringing the total quarterly dividend to 55 cents a share. The dividend is payable on December 15, 2009 to shareholders as on December 1, 2009. The total quarterly dividend payout is estimated to be about $600 million.
Earlier, the company has raised its quarterly dividend in the fourth quarter of fiscal year 2008 by 33%, following a 50% increase in fiscal year 2007.
In September 2007, McDonald’s had announced its intention to return $15 billion to $17 billion to shareholders as dividend and through share repurchases from 2007 through 2009. This is nearly double what the company had returned between 2004 and 2006.
In the current fiscal year, McDonald’s has so far returned approximately $4 billion to shareholders. Since the beginning of 2007, the company has returned total cash of about $15.5 billion. Management expects to return more than $16 billion by the end of 2009.
McDonald’s also notified that with effect from October 30, 2009, it will no longer continue its secondary listing on the Chicago Stock Exchange because of low trading volume of its stocks. The company has its primary listing on the New York Stock Exchange.
McDonald’s and other fast-food chains, like Burger King Holdings (BKC), Yum! Brands (YUM) and Chipotle Mexican Grill (CMG) are faring better than casual and upscale dining restaurants, as budget-constrained consumers are trending towards lower-priced dining options.
Read the full analyst report on “MCD”
Read the full analyst report on “BKC”
Read the full analyst report on “YUM”
Read the full analyst report on “CMG”
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