McDonald's Increasing Shareholder Payouts
The burger behemoth plans to return $18 billion to $20 billion to its shareholders through dividends and stock buybacks over the next two years.
From 2011 to 2013, McDonald's dividends and buybacks were $16.4 billion, which was confirmed through filing with regulators.
McDonald's made the announcement as Don Thompson the CEO was attending an investor conference Wednesday. Thompson also said the company would bolster business through new plans following a period of lackluster growth and sluggish stock performance.
Last month, McDonald's reported that profit for the first quarter of 2014 had fallen by 5.2% from the previous year during the same period.
In addition, in April, McDonald's said its sales for same stores in the United States had fallen by 1.7% for that quarter and 0.6% during March. The company said it was the fifth consecutive month of sales declines in its largest market as far as numbers of restaurants.
Global sales for same stores were up 0.5% for both March and the quarter.
McDonald's stock price has gone up 15% since the Thompson took over as CEO in July of 2012, which is close to 50% of what the Dow increased for the same period.
On Wednesday, shares at McDonald's fell after the company made the announcement.
Many companies are increasing their cash returns to their shareholders over the last few years, some due to pressure from their investors.
On Wednesday, CEO Thompson gave more details over some refranchising plans. He said the company has a goal to refranchise as many as 1,500 restaurants before 2016 ends.
The majority of those are in the Middle East, Europe, Africa and Asia-Pacific.
The target represents an increase in the company's refranchising of over 50% over the previous period of three years.
McDonald's reported cash as well as its equivalents in the amount of $2.74 billion as of the end of March in comparison to $1.87 billion at the same time one year ago.
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