McDonalds Stock Price, News & Analysis

On January 25, 2023, McDonald's President Joe Erlinger criticized California's FAST Act (AB257), claiming it hinders small businesses and threatens job growth. The law, pushed by organized labor, establishes an unelected council to oversee labor decisions in the fast-food industry. Experts from California's Department of Finance and the Department of Industrial Relations dispute its effectiveness, citing a possible 20% increase in fast-food prices and low instances of wage theft in the sector. A California judge has paused enforcement until a ballot measure on November 5, 2024, allowing voters to decide the bill's fate.

McDonald's Corporation (NYSE: MCD) has partnered with Enel North America to procure 189 MW of renewable energy from the Blue Jay Solar project in Texas. This agreement aims to power McDonald's U.S. logistics supply chain entirely with renewable electricity, avoiding over 170,000 metric tons of carbon emissions annually. The project is expected to generate over 470,000 MWh of renewable energy each year and will create approximately 275 jobs. It signifies a strategic move towards achieving McDonald's net zero goals and enhancing sustainability in its operations.

McDonald's reported strong third-quarter results for 2022, with global comparable sales up 9.5%, driven by growth in all segments. U.S. sales rose 6.1%, marking nine consecutive quarters of growth. Digital systemwide sales reached nearly $7 billion in key markets. However, consolidated revenues fell by 5%, and operating income decreased 7%. Diluted earnings per share declined 6% to $2.68. A 10% increase in the quarterly cash dividend to $1.52 per share was announced, reflecting confidence amid macroeconomic uncertainties.

McDonald's has declared a quarterly cash dividend of $1.52 per share, payable on December 15, 2022, to shareholders of record by December 1, 2022. This marks a 10% increase from the previous dividend, showcasing the company's confidence in its long-term growth strategy, 'Accelerating the Arches'. With a history of raising dividends for 46 consecutive years since 1976, the annual dividend now totals $6.08 per share. McDonald's remains committed to returning free cash flow to shareholders through dividends and share repurchases.

On October 3, 2022, McDonald's Corporation (NYSE: MCD) announced the election of Kareem Daniel as an independent Director of the Board, effective October 1, 2022. Daniel, currently Chairman of Disney Media and Entertainment Distribution, brings extensive experience in driving profitability and growth in consumer business sectors. His prior roles at Disney and experience in investment banking at Goldman Sachs position him as a valuable asset for McDonald's Board, expanding its expertise to enhance consumer connections and brand resonance.

McDonald's Corporation announced the opening of Speedee Labs at its global headquarters in Chicago on Sept. 14, 2022. This new facility aims to enhance customer experience and support restaurant teams through innovation. Speedee Labs will combine McDonald's corporate office and existing Innovation Center operations, expanding by an additional 15,000 square feet. Set to open in the second half of 2023, the lab will facilitate collaboration to develop restaurant solutions, leveraging the company's historical transformation since the launch of its Speedee Service System in 1948.

McDonald’s has entered a 15-year virtual power purchase agreement with EDF Renewables North America for the Apollo Solar project, set to generate 619,000 MWh of low-carbon energy annually, enough to power over 1,200 U.S. restaurants. The project, located in Texas, will begin delivering energy in June 2024, creating approximately 300 jobs and generating over $30 million in tax revenue. This initiative supports McDonald’s commitment to climate action, significantly reducing greenhouse gas emissions equivalent to 95,000 vehicles yearly.

McDonald's invests $3.5 million in 40 Chicago-based nonprofits through its Chicago Community Impact Grants Program, in collaboration with The Chicago Community Trust. This initiative focuses on aiding Opportunity Youth, especially local Black and Latinx youth, tackling barriers to employment and education. The grants aim to foster community support systems offering life skills training, mental health resources, and mentorship. McDonald's commitment reflects its long-standing ties to Chicago, prioritizing socio-economic well-being and reinforcing the company’s role in community development.

In an open letter, Joe Erlinger, President of McDonald's USA, expresses his support for raising minimum wages nationwide while criticizing California's AB 257 bill. He argues the bill unfairly targets certain restaurants, imposing wages up to $22 per hour, which could increase costs for quick service restaurants in California by 20%. Erlinger emphasizes that legislation should benefit all restaurant workers fairly, rather than creating disparities among different types of businesses. He calls for a dialogue on wage increases that ensure equitable treatment across the industry.