McDonald's suspends buybacks, leaves dividend policy unchanged: CEO to CNBC

This post was originally published on this site
© Reuters. © Reuters.

(Reuters) – McDonald’s Corp (N:) has suspended share buybacks to help it navigate thorough the coronavirus crisis, but has not changed its dividend policy, Chief Executive Officer Chris Kempczinski told CNBC in an interview on Friday.

In January, the fast-food chain declared a quarterly cash dividend of $1.25 per share of common stock payable on March 16.

McDonald’s had raised its dividend by 8% to $1.25 in September, equivalent to $5 annually. The company has raised its dividend for 43 consecutive years since paying its first one in 1976.

Restaurants in the United States have been forced to shut doors or limit to delivery and take-away in efforts to curb the spread of the highly contagious coronavirus, which has taken the lives of over 200 in the country.

McDonald’s has already moved to defer rent for its operators and close all dine-in operations.

Peer Starbucks (O:) has also shifted to a similar delivery model, while others like sandwich chain Subway and fast-casual chain QDOBA have deferred or lowered the royalty fee they collect from operators.

Kempczinski told CNBC the company has not yet seen a breakdown in its supply chain globally and that it would plan for growth in delivery after the crisis.

In China, the epicenter of the virus, McDonald’s has reopened 95% of its restaurants, Kempczinski said in the interview.

The company was not immediately available for comment to a Reuters request.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment