McDonald's Nears Dividend King Status With Consistent Payout Increases
McDonald's is on the cusp of joining the exclusive Dividend Kings group, which requires at least 50 consecutive years of dividend increases. The company has been raising its payout for 49 straight years and has seen its annual dividend double over the past decade.
In addition to its consistent dividend history, McDonald's boasts a large global presence with a franchise-driven model that generates revenue through royalties and advertising fees. Franchise revenue accounted for approximately 61.5% of total revenue in fiscal 2025, while the US contributed about 40.2% of overall revenue.
While McDonald's has experienced slower earnings growth, analysts project a 6% increase in 2026, followed by 8.3% and 7.8% in 2027 and 2028, respectively. The company's stock price is currently trading near historical valuation support levels, around 20 times forward earnings.