McDonald’s raises quarterly dividend payment by 11pc
McDonald’s raised its quarterly cash dividend 11pc to 61 cents a share as the company boosted sales 88 months straight even in the weak economy.
The 6-cent increase indicates the world’s largest restaurant chain has the cash flow to cover growth initiatives such as new stores in Asia and remodeling programs in the US and Europe, Tom Forte, analyst with Telsey Advisory Group in New York, said in a telephone interview.
“The state of their business is very strong,” Forte said.
“The company remains confident that it will continue to take market share in this still-challenging consumer environment.”
The Illinois-based company last increased its quarterly dividend a year ago, to 55 cents from 50 cents.
The dividend payout will be approximately $650m, the company said.
McDonald’s will pay investors about $5bn in dividends and share buybacks in 2010, Chief Executive Officer Jim Skinner said in a statement today.
McDonald’s fell 9 cents to $75.04 at 9:43am in New York Stock Exchange composite trading. The shares gained 20pc this year before today.