McDonald’s Corporation (MCD) to Issue Quarterly Dividend of $1.86 on June 16th

McDonald’s Corporation (NYSE:MCD) declared a quarterly dividend on Wednesday, May 20th. Stockholders 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) dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend is Tuesday, June 2nd.

McDonald’s has raised its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 49 consecutive years. McDonald’s has a dividend payout ratio of 55.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect McDonald’s to earn $14.12 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 52.7%.

McDonald’s Trading Up 0.5%

NYSE:MCD opened at $279.42 on Friday. McDonald’s has a 1 year low of $271.98 and a 1 year high of $341.75. The firm has a 50 day moving average of $295.34 and a 200-day moving average of $308.57. The stock has a market capitalization of $198.53 billion, a P/E ratio of 23.04, a price-to-earnings-growth ratio of 2.78 and a beta of 0.43.

McDonald’s (NYSE:MCD) last posted its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) 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 company had revenue of $6.52 billion during the quarter, compared to analysts’ expectations of $6.47 billion. During the same quarter in the previous year, the company posted $2.67 earnings per share. McDonald’s’s quarterly revenue was up 9.4% compared to the same quarter last year. As a group, analysts forecast that McDonald’s will post 12.93 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research firms have recently issued reports on MCD. Guggenheim cut their target price on shares of McDonald’s from $325.00 to $320.00 and set a “neutral” rating for the company in a research note on Friday, February 13th. Sanford C. Bernstein reiterated a “market perform” rating and issued a $340.00 target price on shares of McDonald’s in a research note on Thursday, February 12th. Erste Group Bank cut shares of McDonald’s from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Mizuho lifted their target price on shares of McDonald’s from $300.00 to $325.00 and gave the company a “neutral” rating in a research note on Friday, February 6th. Finally, Morgan Stanley set a $331.00 target price on shares of McDonald’s in a research note on Friday, May 8th. Sixteen research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $334.45.

McDonald’s Company Profile

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.