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CHICAGO - McDonald’s Corporation (NYSE:MCD) announced today a 5% increase in its quarterly cash dividend to $1.86 per share of common stock, payable on December 15, 2025, to shareholders of record as of December 1, 2025. The dividend increase will bring the company’s yield to 2.3%, according to InvestingPro data.
The dividend increase marks the fast-food giant’s 49th consecutive annual dividend raise since it began paying dividends in 1976. The new quarterly dividend amounts to $7.44 per share annually. InvestingPro analysis shows McDonald’s as a low-volatility stock with strong financial health, making it particularly attractive for income-focused investors.
In a press release statement, McDonald’s attributed the dividend hike to "continued confidence in the Accelerating the Arches growth strategy" and the company’s ability to generate long-term profitable growth.
The company reaffirmed its capital allocation priorities, which include investing in business growth opportunities, prioritizing dividend payments, and repurchasing shares with remaining free cash flow.
McDonald’s operates more than 44,000 restaurants across over 100 countries, with approximately 95% of its global locations owned and operated by independent local business owners.
The dividend announcement comes as McDonald’s continues to implement its Accelerating the Arches strategy, which focuses on core menu items, digital engagement, and delivery services to drive growth in an increasingly competitive fast-food market.
In other recent news, McDonald’s is testing specialty beverages in approximately 500 locations in Colorado and Wisconsin, as noted by Piper Sandler, which maintained its Neutral rating with a $325 price target. KeyBanc Capital Markets reiterated its Overweight rating on McDonald’s, with a price target of $335, highlighting moderated investor expectations and anticipated fourth-quarter improvements. Meanwhile, TD Cowen lowered its price target for McDonald’s to $320, citing weaker-than-expected U.S. same-store sales and a reduction in third-quarter forecasts. Guggenheim also reduced its price target to $295, maintaining a Neutral rating due to softer restaurant industry trends. RBC Capital initiated coverage with a Sector Perform rating and a $320 price target, expressing concerns over McDonald’s focus on value offerings and potential challenges from lower-income consumer spending pressures. These recent developments reflect a varied outlook from analysts on McDonald’s performance and strategies.
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