Top > Business > 2006 > October > 2006-10-03

McDonald`s Raises Dividend

The biggest fast food company in the world, McDonald`s, raised its annual share almost 50 percent to $1 a share, as an attempt to return large amounts of cash to its shareholders. McDonald`s shares rose 2.5 percent after the announcement. This is the shares highest stage in about seven years. According to what McDonald`s said, its shareholders should expect to get back at least $10 billion through dividends and stock buybacks in the next two years.

Andrew Barish, Banc of America Securities analyst, said in a note to customers: "This increase is larger than we expected and reaffirms management`s confidence in the strength of the company`s operations and capacity to generate strong levels of free cash flow". The company offered its shareholders recently to exchange their shares for shares in Chipotle Mexican Grill Inc. McDonald`s is detaching its last bet in Chipotle, a fast-food company that cells fresh Mexican food.

Customers were mainly attracted to the hamburgers chain by the extension of opening hours, credit cards payment option and the worldwide "I`m Lovin` It" marketing campaign. The main competitor Burger King shares were higher in the latest trade on the New York Stock Exchange.