McDonald's Accelerates Dividend Growth as Domino's Hits Pause
Domino's Pizza and McDonald's are two of the most well-known fast-food chains in the world, but when it comes to dividend growth, they are moving at different speeds.
McDonald's has raised its quarterly payout to $1.93 per share, yielding around 3%, while Domino's has held its payout flat at $1.99 per share with a yield of about 2.7%.
Domino's is currently facing some financial challenges, including a negative equity balance of $4 billion and a significant drop in cash reserves from 40% to just over $164 million.
The company's CFO, Sandeep Reddy, has stated that the lower average check size was due to the underperformance of their Premium Series menu item, but promised that it would not be repeated.