On September 12, McDonald’s Board of Directors raised the company’s annual common stock cash dividend to 21.5 cents per share, an increase of more than 10 percent from the 19.5 cents per share paid in 1999. This is the 26th dividend increase since McDonald’s began paying dividends in 1976.
Analysts at Solomon Smith Barney report that performance of the chain was, overall, in line with their expectiations. US sales rose by four percent in August, while slightly sluggish international same-store sales dropped by one to two percent. The analysts reiterate their Buy, Low Risk rating for McDonald’s stock.
”Our global business remains solid and growing,” said Jack Greenberg, chairman and chief executive officer. “In the U.S., improvements in our business are beginning to show positive results in customer attitudes and food sales trends. Outside the U.S., we continue to build on our leading market position in virtually every country in which we do business. With an ongoing focus on running great restaurants, I am confident we will continue to drive our business forward. This confidence in our future is, in part, reflected in today’s dividend increase.”
This annual dividend will be payable on December 1, 2000 to all shareholders of record on November 15, 2000. McDonald’s switched to an annual dividend cycle, from a quarterly one, this year.