McDonald’s Corporation’s (MCD) Dividend Policy: A Signal of Financial Discipline

Core Insights - McDonald's Corporation (NYSE:MCD) is recognized as one of the 12 Best Dividend Aristocrat Stocks to invest in currently [1] - The company has adopted an asset-light business model by converting a majority of its restaurants to franchises, which minimizes fixed costs [2] - McDonald's has a strong brand presence and effective marketing strategies, contributing to its steady performance despite declining consumer spending [3] Financial Performance - McDonald's has a robust dividend growth track record, having increased dividends for 48 consecutive years [4] - The company currently pays a quarterly dividend of $1.77 per share, resulting in a dividend yield of 2.32% as of September 26 [4] - The stock has shown a solid performance, increasing over 4% at the beginning of 2025 [3] Business Strategy - Approximately 90% of McDonald's restaurants are owned and operated by franchise owners, allowing the company to charge rent on the real estate it owns [2] - The shift to a franchise model has been a strategic move to enhance financial discipline and reduce operational costs [2]