McDonald's Raises Quarterly Dividend by 3.8%

McDonald's Corporation (NYSE:MCD) has announced its quarterly dividend. The fast-food giant will pay shareholders of record on Tuesday, December 1st a dividend of $1.93 per share on Tuesday, December 15th. This represents an increase from the previous quarterly dividend of $1.86.

The annualized dividend is $7.44 and has a yield of 3.1%. The ex-dividend date for this payment is Tuesday, December 1st. McDonald's has a history of increasing its dividend annually for the past 49 consecutive years.

According to the company's financial data, it has increased its dividend by an average of 0.1% per year over the last three years. Research analysts expect McDonald's to earn $13.90 per share next year, which would allow the company to cover its annual dividend with a future payout ratio of 53.5%. The company's current payout ratio is 55.9%, indicating that its dividend is sufficiently covered by earnings.

McDonald's operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates, and the company itself. The company reported $3.38 earnings per share for the quarter, beating analysts' consensus estimates of $3.32. McDonald's had revenue of $7.10 billion during the quarter, compared to analysts' expectations of $7.13 billion.