McDonald's has successfully opened more restaurants, increased dividends, and implemented digital ordering under CEO Chris Kempczinski. The chain's loyalty program has gained 210 million active users. After a decline in Q1 2025, U.S. comparable-store sales rebounded significantly by Q4 2025. The company reported full-year revenue of $26.885 billion and has nearly 50 consecutive annual dividend increases. While McDonald's offers a solid income stream, its stock performance has lagged behind the S&P 500, prompting some investors to consider alternatives for total return.
"McDonald's has done what it does best: open more restaurants, raise the dividend, buy back stock, and let the franchise model do the heavy lifting. Under CEO Chris Kempczinski, the chain leaned into digital ordering, a loyalty program now spanning 70 markets with roughly 210 million 90-day active users."
"After U.S. comparable-store sales fell 3.6% in Q1 2025, McDonald's recovered to +6.8% U.S. comps and +5.7% global comps in Q4 2025. Full-year revenue hit $26.885 billion, with EPS of $12.20."
"The quarterly payout climbed from $0.89 in 2016 to $1.86 in March 2026, more than doubling the income stream and boosting total returns well above price-only gains."
"McDonald's is a fine place to put $1,000 today for investors seeking a defensive compounder paying a 2.5% yield with a likely Dividend King coronation, expanding loyalty economics, and a 2026 plan for around 2,600 new restaurants."
Read at 24/7 Wall St.
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