McDonald’s Co. (NYSE:MCD) Plans Quarterly Dividend of $1.67

McDonald’s Co. (NYSE:MCD) announced a quarterly dividend on Thursday, July 25th, RTT News reports. Investors of record on Tuesday, September 3rd will be given a dividend of 1.67 per share by the fast-food giant on Tuesday, September 17th. This represents a $6.68 annualized dividend and a yield of 2.66%.

McDonald’s has increased its dividend payment by an average of 7.3% annually over the last three years and has increased its dividend every year for the last 48 years. McDonald’s has a dividend payout ratio of 50.6% indicating that its dividend is sufficiently covered by earnings. Analysts expect McDonald’s to earn $13.11 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 51.0%.

McDonald’s Price Performance

Shares of NYSE MCD opened at $251.41 on Friday. The firm has a market cap of $181.19 billion, a price-to-earnings ratio of 21.34, a P/E/G ratio of 2.91 and a beta of 0.71. The stock’s fifty day moving average price is $255.85 and its two-hundred day moving average price is $274.06. McDonald’s has a one year low of $243.53 and a one year high of $302.39.

McDonald’s (NYSE:MCD) last released its quarterly earnings results on Tuesday, April 30th. The fast-food giant reported $2.70 EPS for the quarter, missing the consensus estimate of $2.71 by ($0.01). McDonald’s had a net margin of 33.36% and a negative return on equity of 180.74%. The business had revenue of $6.17 billion during the quarter, compared to analyst estimates of $6.16 billion. During the same quarter last year, the company posted $2.63 earnings per share. The company’s revenue was up 4.6% on a year-over-year basis. On average, equities analysts anticipate that McDonald’s will post 12.13 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages have recently commented on MCD. BMO Capital Markets lowered their target price on shares of McDonald’s from $335.00 to $330.00 and set an “outperform” rating on the stock in a report on Wednesday, May 1st. Morgan Stanley lowered their price objective on McDonald’s from $312.00 to $300.00 and set an “overweight” rating on the stock in a research note on Thursday, July 11th. Evercore ISI cut their target price on McDonald’s from $330.00 to $300.00 and set an “outperform” rating for the company in a research report on Tuesday, July 16th. Guggenheim decreased their price target on McDonald’s from $315.00 to $280.00 and set a “buy” rating on the stock in a research report on Tuesday, July 2nd. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on shares of McDonald’s from $310.00 to $295.00 and set a “buy” rating for the company in a research report on Tuesday, July 16th. Ten equities research analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the company’s stock. According to MarketBeat, McDonald’s currently has a consensus rating of “Moderate Buy” and an average price target of $308.57.

Insiders Place Their Bets

In other news, EVP Marion K. Gross sold 1,498 shares of McDonald’s stock in a transaction dated Wednesday, July 3rd. The stock was sold at an average price of $248.26, for a total transaction of $371,893.48. Following the sale, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at $387,285.60. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other McDonald’s news, EVP Marion K. Gross sold 1,498 shares of the company’s stock in a transaction that occurred on Wednesday, July 3rd. The shares were sold at an average price of $248.26, for a total value of $371,893.48. Following the completion of the transaction, the executive vice president now directly owns 1,560 shares in the company, valued at approximately $387,285.60. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 1,099 shares of McDonald’s stock in a transaction on Tuesday, July 23rd. The stock was sold at an average price of $260.00, for a total transaction of $285,740.00. Following the transaction, the insider now owns 13,681 shares in the company, valued at approximately $3,557,060. The disclosure for this sale can be found here. Insiders sold a total of 5,594 shares of company stock valued at $1,454,507 in the last 90 days. Corporate insiders own 0.23% of the company’s stock.

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.