News

McDonald's raises dividend 15 %

September 21, 2018

McDonald's board has approved the company's 42nd consecutive annual dividend increase, raising the quarterly dividend 15 percent from $1.01 to $1.16 per share of common stock, payable on Dec. 17, 2018, to shareholders of record at the close of business on Dec. 3, 2018. This brings the fourth quarter dividend payout to nearly $900 million, a news release said.

The company said its new business model and effect of tax cuts has given it increased capital allocation flexibility.

"Our substantial cash flow enables us to invest in the business to drive growth under our Velocity Growth Plan," McDonald's President and CEO Steve Easterbrook said in the release. "We are confident that the plan will deliver sustained, long-term profitability for our system and our shareholders, which is reflected in today's increases in our dividend and three-year cash return to shareholders target."

These company said, as a result, it stands behind its goals to achieve the following long-term, average annual financial targets, beginning in 2019:

• 3 to 5 percent systemwide sales growth.
• Mid-40 percent operating margin.
• High single-digit EPS growth. 
• Mid-10 percent-range ROIIC.

McDonald's now has more than 37,000 locations in 100-plus countries. It is 90 percent franchised.