McDonald’s Co. (NYSE:MCD) announced a quarterly dividend on Thursday, July 19th, RTT News reports. Shareholders of record on Tuesday, September 4th will be paid a dividend of 1.01 per share by the fast-food giant on Tuesday, September 18th. This represents a $4.04 annualized dividend and a yield of 2.57%.

McDonald’s has increased its dividend payment by an average of 5.3% per year over the last three years and has increased its dividend annually for the last 41 consecutive years. McDonald’s has a payout ratio of 52.7% meaning its dividend is sufficiently covered by earnings. Research analysts expect McDonald’s to earn $8.27 per share next year, which means the company should continue to be able to cover its $4.04 annual dividend with an expected future payout ratio of 48.9%.

MCD traded down $0.52 during trading on Thursday, hitting $157.41. 4,865,678 shares of the stock traded hands, compared to its average volume of 4,285,727. The stock has a market capitalization of $125.43 billion, a P/E ratio of 23.78, a PEG ratio of 2.36 and a beta of 0.65. The company has a quick ratio of 1.72, a current ratio of 1.74 and a debt-to-equity ratio of -6.54. McDonald’s has a 12-month low of $146.84 and a 12-month high of $178.70.

McDonald’s (NYSE:MCD) last announced its quarterly earnings results on Monday, April 30th. The fast-food giant reported $1.79 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.67 by $0.12. The business had revenue of $5.14 billion during the quarter, compared to analysts’ expectations of $4.97 billion. McDonald’s had a net margin of 24.02% and a negative return on equity of 167.80%. The firm’s revenue for the quarter was down 9.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.47 EPS. sell-side analysts expect that McDonald’s will post 7.66 EPS for the current fiscal year.

In related news, EVP Kevin M. Ozan sold 18,636 shares of the stock in a transaction dated Tuesday, May 1st. The shares were sold at an average price of $165.69, for a total value of $3,087,798.84. Following the completion of the transaction, the executive vice president now directly owns 29,800 shares in the company, valued at approximately $4,937,562. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Douglas M. Goare sold 13,255 shares of the stock in a transaction dated Tuesday, May 1st. The stock was sold at an average price of $165.40, for a total transaction of $2,192,377.00. The disclosure for this sale can be found here. 0.22% of the stock is owned by company insiders.

Several equities research analysts have weighed in on MCD shares. Bank of America set a $190.00 price target on shares of McDonald’s and gave the company a “buy” rating in a research report on Tuesday, May 1st. Royal Bank of Canada reissued a “buy” rating and set a $175.00 price target on shares of McDonald’s in a research report on Monday, July 9th. Vetr raised shares of McDonald’s from a “hold” rating to a “buy” rating and set a $177.90 target price for the company in a research report on Tuesday, April 10th. Wells Fargo & Co dropped their target price on shares of McDonald’s from $185.00 to $180.00 and set an “outperform” rating for the company in a research report on Wednesday, July 11th. Finally, Goldman Sachs Group set a $185.00 target price on shares of McDonald’s and gave the stock a “buy” rating in a research report on Tuesday, May 8th. Ten analysts have rated the stock with a hold rating and twenty-three have issued a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus target price of $183.82.

About McDonald’s

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer various food products, soft drinks, coffee, and other beverages, as well as breakfast menu. As of December 31, 2017, the company operated 37,241 restaurants, including 34,108 franchised restaurants comprising 21,366 franchised to conventional franchisees, 6,945 licensed to developmental licensees, and 5,797 licensed to foreign affiliates; and 3,133 company-operated restaurants.

Further Reading: Price to Earnings Ratio (PE) Basics

Dividend History for McDonald`s (NYSE:MCD)

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