| Stock Ticker | Home Page | Asset Class | Sector | Industry | Investment Strategy | Dividend Frequency | Geographic Focus |
|---|---|---|---|---|---|---|---|
| MCD | McDonald's Corporation | Stock / Equity | Consumer Discretionary | Restaurants | Growth | Quarterly | Global |
McDonald's Corporation (MCD) isn't just a fast-food giant; it's a proven dividend payer with a 48-year streak of consecutive increases. This commitment to rewarding shareholders translates to a stable and predictable income stream. While not the highest-yielding option, MCD prioritizes sustainable payouts alongside moderate growth potential. Its focus on essential items and global presence contribute to its dividend sustainability.
| Detail | |
|---|---|
Overview: |
McDonald's, the world's leading fast-food chain, serves a variety of menu items, including hamburgers, fries, and beverages, to over 69 million customers daily across more than 40,000 restaurants in over 100 countries. It caters to a broad target market, offering affordable and convenient meals for families, individuals, and on-the-go consumers. The company's mission is "to be the world's best restaurant experience – committed to the highest quality food, exceptional service, and community involvement." |
Business Model: |
MCD operates a franchised business model, generating revenue through franchise fees, rent payments, and royalties on sales at franchised restaurants. It also owns and operates a smaller portion of restaurants directly. The company leverages its global brand recognition, standardized menu, and efficient supply chain to drive profitability. Key partners include franchisees, food suppliers, and logistics providers. |
Industry Competition: |
MCD faces intense competition in the fast-food industry from rivals like Burger King, Wendy's, and Restaurant Brands International (Taco Bell, KFC). The industry is also challenged by emerging trends like health-conscious consumer preferences and food delivery services. |
Competitive Advantages: |
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Management Team: |
Chris Kempczinski, CEO, leads an experienced team with proven track records in the restaurant industry. The team has navigated industry challenges and implemented strategic initiatives to drive growth and profitability. |
Financial Performance: |
MCD has a history of consistent revenue and earnings growth, supported by its global presence, franchise model, and menu innovation. Recent investments in digital initiatives and restaurant modernization position the company for future success. However, industry competition and economic fluctuations can impact performance. |
Investment Thesis: |
Investors seeking a stable dividend payer with moderate growth potential might find MCD attractive. Its strong brand, franchised model, and focus on affordability suggest long-term sustainability. The company's commitment to shareholder returns through dividends and share buybacks further strengthens its appeal. However, consider the competitive landscape, industry cyclicality, and limited growth prospects before investing. |
Conclusion: |
MCD is a well-established fast-food giant with a proven track record of success. Its competitive advantages, experienced management team, and solid financial performance make it a compelling investment opportunity for income-oriented investors seeking some growth potential. However, careful consideration of industry headwinds and risk tolerance is crucial before investing. Diversification across sectors and consulting a financial advisor remain essential before making any investment decisions. |
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MCD Dividend Data |
McDonald's Corporation (MCD) has a strong history of paying dividends. The annual dividend is currently $6.68 per share. The next dividend payment is expected on March 15, 2024. |
MCD Dividend Yield |
The forward yield of MCD is 2.27%. This means that for every $100 invested in the company's stock, investors would receive $2.27 in dividends per year. |
MCD Dividend History |
McDonald's has a history of paying dividends since 1994. The company has issued four quarterly dividends in the last twelve months. The most recent quarterly dividend payment of $1.67 per share was made to shareholders on Thursday, December 15, 2023. |
MCD Dividend Payout & Dividend Payout Ratio |
The dividend payout ratio for MCD is 57.74% based on the trailing year of earnings. This indicates that 57.74% of the company's earnings are paid out as dividends. |
MCD Dividend Stability & Growth |
MCD's dividends per share have been stable in the past 10 years. Over the past three years, the company's dividend has grown by an average of 7.32% per year. McDonald's has increased its dividend for the past 48 consecutive years. |
| McDonald's (MCD) | Yum! Brands (YUM) | PepsiCo (PEP) | |
|---|---|---|---|
Industry Focus |
Fast food restaurants | Fast food restaurants | Beverage and snack food |
Current Yield |
2.27% | 1.95% | 3.01% |
Price-to-Earnings Ratio (P/E) |
25.52 | 24.58 | 25.63 |
Investment Strategy |
Global fast food chain, franchise model | Global fast food chain, franchise model | Global beverage and snack food company |
When considering the attractiveness of McDonald's Corporation (MCD) dividend, it's important to take into account the company's dividend history and growth. MCD has a strong history of paying dividends, with consecutive payouts for a number of years. The annual dividend is currently $6.68 per share, with a dividend payout ratio of 57.79%. This indicates that the company is able to cover its dividend payments with its earnings. However, the fast-food sector in which MCD operates is highly competitive and subject to rapid changes in consumer preferences and economic conditions.
The next dividend payment is expected to follow the dividend date pattern established in the MCD dividend history. The last ex-dividend date was on February 29, 2024, and the frequency of the dividend is quarterly. However, the future growth of MCD's dividend is not guaranteed. Factors such as a recession, changes in the fast-food landscape, or shifts in consumer behavior could impact MCD's performance and ability to increase or even maintain its current dividend. Therefore, while the MCD dividend may be an attractive feature for income-focused investors, it's crucial to conduct a thorough analysis and consider the potential risks before adding MCD to your portfolio or ETFs.