McDonald's Raises Dividend Payout by 5%
By John Kell
McDonald's Corp.'s (MCD) board approved a 5% hike to the fast-food chain's dividend, a move that highlights the
company's preference to return cash to shareholders first through dividends, with a secondary focus on buybacks.
President and Chief Executive Don Thompson said the increase would bring total cash returned to shareholders to a
range of $4.5 billion to $5 billion in 2013 through dividends and share repurchases. The latest increase will cost
McDonald's roughly $160 million a year.
McDonald's, which has raised its dividend each year since first paying one in 1976, will now pay a quarterly dividend
of 81 cents a share, up from the prior payout of 77 cents.
The company has said that it focuses first on dividends, and then on share repurchases when returning cash to
The increase comes as McDonald's has been challenged as weak economies around the globe have resulted in fewer
consumers eating out. To attract customers from that smaller pool, McDonald's has reinvigorated its Dollar Menu in the
U.S. with additional items and aggressive marketing, while also launching value menus in other countries.
The company is tentatively planning to release third-quarter results on Oct. 21. Analysts polled by Thomson Reuters
have recently projected the fast-food chain to report a 5% jump in profit, with sales seen rising 3%.
Shares, inactive in after-hours trading, have risen 12% in 2013, underperforming the broader market.
Write to John Kell at firstname.lastname@example.org
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