McDonald's became a Dividend King after raising its dividend for 50 consecutive years, and in September lifted its quarterly payout to $1.93 per share, up 4%. The stock is down 23% year to date near its 52-week low at $235, hurt by inflation, higher costs and the loss of some lower-income customers after menu price increases. Second-quarter results were solid, with revenue up 4%, systemwide sales up 5% and earnings up 6%, though U.S. comparable sales rose only 0.8%. Under its NEXT strategy, unveiled Sept. 23, McDonald's plans to invest $8.5 billion through 2036 and targets a 50% operating margin by 2030. The author notes the stock's forward P/E of 17 is the lowest since the 2020 COVID crash.
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McDonald's has raised its dividend for 50 consecutive years, becoming a Dividend King in 2026. In September it lifted its quarterly dividend to $1.93 per share, a 4% increase over the prior quarter. The stock is down 23% year to date, trading near a 52-week low at $235 per share, hurt by inflation, higher costs and the loss of some lower-income customers. In the second quarter, revenue rose 4%, systemwide sales 5%, comp sales 1.3% and earnings 6%, though U.S. comp sales grew only 0.8%. On Sept. 23 the company unveiled its NEXT strategy, investing $8.5 billion through 2036 and targeting a 50% operating margin by 2030, with a forward P/E of 17.
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