Current Dividend Yield: 3.23%
Performance So Far in 2013: +8%
Lately, it’s hard to get a bead on fast-food behemoth McDonald’s (NYSE:MCD).
On the one hand, the term “same-store sales” has become a reason to cringe when mentioning McDonald’s. The company suffered a 1.8% decline globally in October, which included a huge drop-off in American same-store sales that led to ouster of its U.S. operations president. And while MCD did see a nice global rebound in November, it followed that up with flat same-store sales in December and a surprisingly big decline in Janaury.
On the other hand, McDonald’s still came through when it reported Q4 earnings late last month, beating estimates by announcing that profits had grown roughly 5% to $1.38 per share on slightly improved revenues of $1.4 billion.
On the … er … third hand, MCD also warned that it expected sales to be slower in the first quarter of 2013 and anticipated the January decline that was confirmed earlier this month.
And yet, 8% gains so far in 2013.
Maybe it’s on hopes that Fish McBites and a revived push for its Dollar Menu will help right the ship — or maybe investors simply couldn’t resist McDonald’s 1-2 punch of value and security. MCD shares started the year 10% cheaper than 2012’s highs, and they yield well more than 3% after a 7-cent increase to the dividend in late 2012. Plus, that payout has been growing every year since 1976, when McDonald’s first started issuing dividends.
MCD goes ex-dividend Feb. 27 for its March 15 payout.