McDonald’s Comps Exceed Expectations, Rose +2.4% (MCD)

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Fast-food giant McDonald's Corporation ( MCD ) announced on Monday that its global comparable sales increased in November, outpacing analyst expectations.

The Oak Brook, Illinois-based company saw its global comparable sales, otherwise known as same store sales, increase +2.4% in November while Wall Street estimates were at +0.2%. Comparable sales (comps) are an important metric used to measure a retailer's performance, since they only take into account sales at stores open at least one year.

McDonald's US comparable sales rose +2.4% on estimates of +0.6%; European comps were up +1.4% on the consensus of up +0.1%; Asian, Middle Eastern, and African comps were up +0.6% versus the expectation of decline by -0.9%.

McDonald's shares were up $1.91, or +2.16%, in premarket trading on Monday.

McDonad's is the largest and most well known fast food restaurateur in the world. The home of the Big Mac reported net income of $1.46 billion, or $1.43 per share, on revenues of $7.15 billion in the most recent quarter.

McDonald's Dividend In Focus

McDonald's has paid out a dividend of $3.08 per share over the past 12 months , which is a yield of about 3.48% based on Friday's closing price of $88.48. The company raised its quarterly dividend by 7 cents for its most recent distribution, increasing the quarterly payout from 70 cents to 77 cents per share. McDonald's next dividend of 77 cents per share has a pay date of December 17, however the ex-dividend date, November 29, has already passed (view the Ex-Dividend Tool  for information on all upcoming ex-dividend dates).

Recent McDonald's dividends include:

  • March 15, 2012: $0.70
  • June 15, 2012: $0.70
  • September 18, 2012: $0.70
  • December 17, 2012: $0.77

In addition to its consistent increase in quarterly dividend payout every year, McDonald's has increased its total dividend payout over the past three years. However MCD payout ratio has roughly been in the same range over the past three, even showing some decline because of an increase in EPS:

Year Dividend ($B) Payout Ratio
2009 $2.05 49.2%
2010 $2.26 48.7%
2011 $2.53 47.5

McDonald's vs. The Competition has identified several stocks that are in the same sector as McDonald's, including The Wendy's Company  ( WEN ), Yum! Brands  ( YUM ), and Bob Evans  ( BOBE ). McDonald's current dividend yield is the highest among these quick-service restaurant operators.

Ticker Company Yield DARS
MCD McDonald's 3.48% 3.4
WEN Wendy's 3.40% 2.9
BOBE Bob Evans 2.74% 3.4
YUM Yum! Brands 2.02% 3.4

Use the screener  to see all dividend-paying consumer goods stocks, or run other custom searches for dividend-paying stocks.

McDonald's Corporation ( MCD ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: MCD

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