Dow Dividend Stocks #7: McDonald’s (MCD)
McDonald’s (MCD) got off to a great start early in 2013, rising almost 15% through mid-April. But this leader among fast-food and dividend stocks started giving back those gains after several disappointing earnings reports hit the tape below Wall Street estimates.
In its latest earnings release on Jan. 23, MCD reported fourth-quarter revenues of $7.09 billion (slightly below the $7.1 billion consensus) and earnings of $1.40 per share (just above the $1.39 consensus).
While those numbers were roughly in line with expectations, MCD also reported that same-restaurant sales for December fell 3.8% in the United States — much worse than the 0.6% decline analysts had predicted.
Don’t let that scare you off, though. MCD is down a meager 2.7% in 2014, and even less since the last time it was featured on our list. On a more positive note, the $3.24 annual dividend makes for a very nice 3.4% yield. With the stock now trading just 1.5% above its 52-week low, this should be seen as an attractive opportunity to own one of the world’s most recognizable brands and dividend stocks.