McDonald's Nears Dividend Record Amid Struggling Share Price
McDonald's is on the cusp of achieving a significant milestone in its dividend history. The fast-food giant is expected to announce its 50th consecutive annual dividend increase, which would put it among the exclusive 'Dividend Kings'.
The company's most recent quarterly payout of $1.86 per share translates to an annualized yield of roughly 2.8 percent.
However, McDonald's share price has struggled in recent months, trading at €231.20 and sitting just 1.4 percent above its 52-week low of €228.10. The stock has shed 12 percent since the start of the year and 14 percent over the past twelve months.
The company is implementing a 'McDonald's > NEXT' strategy, which includes automation, restaurant redesigns with a focus on aesthetics, and menu innovation, such as hand-breaded chicken wings and filets. This effort follows the nationwide US rollout of the 'Red Bull Dragonberry Energizer' drink.
Market research firm Numerator found that McDonald's lost roughly $310 million in sales from low-income customers last quarter, with households earning under $40,000 annually purchasing 2.4 percent less than a year earlier.