It has been a lackluster year for
But the company's plans to increase its dividend by 10% could
make the fast-food giant more appetizing for investors.
McDonald's announced its dividend increase late yesterday.
This morning shares have risen 0.7% to break the $93.80 level for
the first time since early May.
The company is bumping its quarterly dividend to 77 cents a
share from its current 70-cents-a-share level. First payment of
the more generous dividend is slated for December 17, and is
payable to anyone who owns McDonald's shares as of December
So this could be a strong last three months for a stock that
could use a shot of adrenalin.
Entering the day, McDonald's shares were down 5.76% for the
year and 4.5% since May 2. A couple disappointing
in the second and third quarters - both of which fell short of
the previous two quarters - have dragged the stock down.
A weak global economy has weighed on profits. Last quarter,
the company's global sales dipped for the first time in almost a
decade. Not surprisingly, sales in Europe were especially weak,
falling 0.6% from the same quarter a year ago.
Meanwhile, McDonald's is getting stiff competition from some
of its fast food contemporaries.
went public again in mid-June after almost a two-year
stock-market absence. Shares of
Yum! Brands (
Dunkin' Donuts, Pizza Hut
are up more than 17% in 2012. And
has been expanding its menu to appeal to a wider range of
customers amid growing demand for healthier options.
With no impending menu overhaul and a stock that's been stuck
in the mud of late, upping its dividend - as it usually does this
time of year - was McDonald's way of attracting investors'
So far it's working.