McDonald’s Co. (NYSE:MCD – Get Rating) declared a quarterly dividend on Thursday, May 26th, RTT News reports. Shareholders of record on Monday, June 6th will be given a dividend of 1.38 per share by the fast-food giant on Monday, June 20th. This represents a $5.52 dividend on an annualized basis and a yield of 2.22%.
McDonald’s has increased its dividend by an average of 7.8% annually over the last three years and has increased its dividend every year for the last 46 years. McDonald’s has a dividend payout ratio of 51.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect McDonald’s to earn $10.78 per share next year, which means the company should continue to be able to cover its $5.52 annual dividend with an expected future payout ratio of 51.2%.
Shares of NYSE MCD traded up $4.08 during trading on Thursday, hitting $248.09. The company had a trading volume of 1,940,484 shares, compared to its average volume of 3,228,760. The firm has a market capitalization of $183.47 billion, a price-to-earnings ratio of 26.20, a price-to-earnings-growth ratio of 2.91 and a beta of 0.57. The stock has a fifty day simple moving average of $246.38 and a two-hundred day simple moving average of $251.09. McDonald’s has a fifty-two week low of $217.68 and a fifty-two week high of $271.15.
McDonald’s (NYSE:MCD – Get Rating) last released its quarterly earnings data on Thursday, April 28th. The fast-food giant reported $2.28 earnings per share for the quarter, topping analysts’ consensus estimates of $2.18 by $0.10. McDonald’s had a negative return on equity of 131.20% and a net margin of 29.93%. The company had revenue of $5.67 billion for the quarter, compared to analyst estimates of $5.57 billion. During the same quarter in the previous year, the company posted $1.92 earnings per share. The firm’s revenue for the quarter was up 10.6% compared to the same quarter last year. Sell-side analysts predict that McDonald’s will post 9.83 EPS for the current year.
Several research analysts have recently commented on the stock. StockNews.com assumed coverage on shares of McDonald’s in a research note on Thursday, March 31st. They issued a “hold” rating for the company. Piper Sandler cut their target price on shares of McDonald’s from $282.00 to $250.00 and set an “overweight” rating on the stock in a report on Monday, March 28th. Guggenheim lowered their price objective on shares of McDonald’s from $300.00 to $290.00 and set a “buy” rating on the stock in a research report on Monday, May 2nd. Wedbush reiterated an “outperform” rating on shares of McDonald’s in a research report on Friday, January 28th. Finally, Northcoast Research downgraded shares of McDonald’s from a “buy” rating to a “neutral” rating and set a $297.00 price target for the company. in a research report on Thursday, March 10th. Seven investment analysts have rated the stock with a hold rating and twenty-two have given a buy rating to the stock. According to data from MarketBeat.com, McDonald’s has an average rating of “Buy” and a consensus target price of $281.74.
In related news, insider Joseph M. Erlinger sold 5,892 shares of McDonald’s stock in a transaction on Wednesday, May 4th. The stock was sold at an average price of $249.23, for a total value of $1,468,463.16. Following the transaction, the insider now directly owns 8,187 shares in the company, valued at approximately $2,040,446.01. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Catherine M. Engelbert bought 1,000 shares of the firm’s stock in a transaction that occurred on Monday, February 28th. The stock was bought at an average price of $244.18 per share, for a total transaction of $244,180.00. The disclosure for this purchase can be found here. Company insiders own 0.25% of the company’s stock.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Morgan Stanley grew its holdings in shares of McDonald’s by 4.7% during the second quarter. Morgan Stanley now owns 8,376,495 shares of the fast-food giant’s stock valued at $1,934,888,000 after buying an additional 372,512 shares in the last quarter. Charles Schwab Investment Management Inc. grew its holdings in shares of McDonald’s by 2.2% during the first quarter. Charles Schwab Investment Management Inc. now owns 5,117,531 shares of the fast-food giant’s stock valued at $1,265,463,000 after buying an additional 108,282 shares in the last quarter. Renaissance Technologies LLC grew its holdings in shares of McDonald’s by 44.2% during the first quarter. Renaissance Technologies LLC now owns 2,531,400 shares of the fast-food giant’s stock valued at $625,965,000 after buying an additional 776,419 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of McDonald’s by 1,189.7% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,191,692 shares of the fast-food giant’s stock valued at $541,962,000 after buying an additional 2,021,754 shares in the last quarter. Finally, Eaton Vance Management grew its holdings in shares of McDonald’s by 20.1% during the first quarter. Eaton Vance Management now owns 645,899 shares of the fast-food giant’s stock valued at $159,717,000 after buying an additional 108,076 shares in the last quarter. Institutional investors and hedge funds own 68.44% of the company’s stock.
About McDonald’s (Get Rating)
McDonald’s Corporation operates and franchises McDonald’s restaurants in the United States and internationally. Its restaurants offer hamburgers and cheeseburgers, chicken sandwiches and nuggets, wraps, fries, salads, oatmeal, shakes, desserts, sundaes, soft serve cones, bakery items, soft drinks, coffee, and beverages and other beverages, as well as breakfast menu, including biscuit and bagel sandwiches, breakfast burritos, hotcakes, and other sandwiches.
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