McDonald's Plunges to 52-Week Low, But Dividend Hopes Remain Strong
McDonald's recently hit a 52-week low after a disappointing second quarter earnings report. The company, a Dow component and fast-food restaurant stock, saw its stock price pull back by 21% from its late-February peak.
The decline was attributed to a 'constrained consumer environment,' which led to weak same-store sales growth of only 1.3% systemwide and 0.8% domestically. However, CEO Chris Kempczinski acknowledged that the company is acting with urgency to improve guest traffic and put its business in a stronger position.
Despite the challenges, McDonald's dividend remains stable, with a forward yield of 2.8%. The company has raised its dividend annually for 49 consecutive years, making it a prime candidate to become one of the market's few Dividend Kings after announcing its next payout hike in September or October.