McDonald's: Oblivious to Market Crisis

McDonald's stock is at an all-time high.The company announced on Thursday it would raise its quarterly cash dividend by 33% to 50 cents per share as strong sales helped boost its overall cash from operations.

"We are confident in our ability to invest in key growth opportunities and maintain a strong credit rating even as we return a significant amount of cash to shareholders," McDonald's Chief Executive Jim Skinner said.

McDonald's plans to return $15 billion to $17 billion in cash to shareholders from 2007 to 2009. In 2007 it  returned $5.7 billion to shareholders via a combination of dividends and share repurchases and have returned $5.1 billion so far this year.

In tough times the best run companies eventually rise to the top, McDonald's clearly is one of them.

Disclosure: Long MCD

Comments

[PeteK:]

Sure MCD has to do well. My grandfather took me to McDonalds when I was a little kid. Now I am taking my grandkids to McDonalds. Kind of like a culture now.

2008 Sep 28 08:58 AM

[jimp:]

This is great for all current and future health care providers. Job security! It seems like 65% of the US population has absolutely no clue or cares on how terrible MCD is on the body. People wake up.

2008 Sep 28 11:51 AM

[Dividends A...:]

MCD has finally learnt from their repeated failures of attempting to compete on price. They now do what they know they can do best and their global operations are providing meaningful growth to the business. Their recent store redesigned in NA and strong understanding of target markets in Europe are a great management story.

And I LOVE that dividend!

2008 Sep 28 02:30 PM

[Use the facts:]

User 244621,
Evidently you have no clue. McDonald's has plenty of Salads, Grilled Chicken, yogurt and other items that will fit into any diet. The other items that are on the menu are not what is "terrible" on the body, it is what you choose to buy and eat, and in what quantity. The quality of everything on th menu is better than what you find in the grocery store. It is you who needs to wake up.

2008 Sep 28 02:39 PM

[mcdinvester:]

To use the facts; I'm happy to read that some one knows about McDonalds. 244621 need to look around. alittle bit, with the eyes open.Might fine some thing nice about McDonalds.

2008 Sep 28 04:42 PM

[Market Folly:]

liking MCD here as well for numerous reasons: www.marketfolly.com/20...

2008 Sep 28 04:49 PM