Forget menu prices, McDonald’s quietly makes massive financial move | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

A lot of attention has been focused on McDonald’s seeing a change in its customer base.

That’s something CEO Christopher Kempczinski talked about extensively during the chain’s third-quarter earnings call.

“In the U.S., we continue to see a bifurcated consumer base with QSR traffic from lower-income consumers declining nearly double digits in the third quarter, a trend that’s persisted for nearly 2 years. In contrast, QSR traffic growth among higher-income consumers remained strong, increasing by nearly double digits in the quarter,” he said.

To try to win back lower-income customers (and keep people happy in general), McDonald’s has leaned into offering more value.

“We continue to remain cautious about the health of the consumer in the U.S. and our top international markets and believe the pressures will continue well into 2026. Delivering industry-leading value is part of McDonald’s DNA. It’s a foundational expectation of our brand to bring consumers through our doors and keep them coming back,” he added.

In the U.S., this has involved promoting its Extra Value Meals (EVMs) that were introduced in September with a national advertising campaign.

These include:

$5 Sausage McMuffin with Egg meal
$8 Big Mac meal
$5 Sausage Egg and Cheese McGriddles meal
$8 10-piece Chicken McNuggets meal

In addition to offering lower prices for American consumers, McDonald’s has invested in other areas. That has included rewarding investors.

McDonald’s also focuses on shareholders

Lower menu prices have not come at the expense of shareholders.

“With respect to capital allocation, our priorities remain unchanged,” CFO Ian Borden said during the call.

He laid out those priorities.

“First, we invest in opportunities to grow the business and drive strong returns. Second, we return remaining free cash flow to shareholders over time through dividends and share repurchases,” he said.

Borden then noted that McDonald’s is on the verge of some very rare territory.

“With respect to capital returns, in October, we announced a 5% increase in our dividend, which is our 49th consecutive year of dividend increases. That’s a testament to the strength, resilience and long-term value that McDonald’s delivers and expects to continue to deliver to our shareholders. Our ability to consistently return capital while investing in the business reflects the durability of our model and the confidence we have in our future,” he added.

More Restaurants

That puts McDonald’s only one year away from becoming a Dividend King.

“Dividend Kings are a select group of companies on Wall Street that have consistently increased their dividends for at least 50 consecutive years,” Bankrate shared.

McDonald’s has leaned into Extra Value Meals.

Shutterstock

Dividend Kings (50+ years of consecutive raises)

(The elite group — the longest dividend-growth streaks in the U.S.)

70+ Years

American States Water (AWR): 71 years
Procter & Gamble (PG): 69 years
Parker-Hannifin (PH): 69 years
Genuine Parts Company (GPC): 69 years

60–69 Years

Dover Corporation (DOV): 68 years
Northwest Natural Holding (NWN): 68 years
Emerson Electric (EMR): 67 years
3M (MMM) : 65 years
Cincinnati Financial (CINF): 63 years
Coca-Cola (KO): 62 years
Johnson & Johnson (JNJ): 62 years
Colgate-Palmolive (CL): 61 years
Lowe’s (LOW): 61 years

50–59 Years

Kimberly-Clark (KMB)
Illinois Tool Works (ITW)
Stanley Black & Decker (SWK)
Target (TGT)
Sysco (SYY)
California Water Service (CWT)
Black Hills Corp. (BKH)
SJW Group (SJW)
ABM Industries (ABM)
Tootsie Roll Industries (TR)
Universal Corporation (UVV)
H.B. Fuller (FUL)
Walmart (WMT): 50 years
PepsiCo (PEP): 52 years

40–49 Years

McDonald’s (MCD): 49 years
Automatic Data Processing (ADP): 49 years
Aflac (AFL): 41 years

Why dividends matter

Many investors prefer companies that pay dividends. Zachs saluted McDonald’s a year ago when it raised its dividend for the 48th consecutive year.

“The 6% increase brings the annual dividend payout to $7.08 per share. McDonald’s has a robust track record of rewarding its shareholders. The company has raised its dividend for 48 consecutive years since the first issued in 1976. This consistency underscores MCD’s commitment to returning capital to its shareholders while balancing investments in growth opportunities,” the analyst firm shared.

McDonald’s explained its latest dividend increase in a press release.

“McDonald’s has a strong history of returning capital to its shareholders and has raised its dividend for 49 consecutive years since paying its first dividend in 1976. “The new quarterly dividend of $1.86 per share is equivalent to $7.44 annually. The company is committed to its capital allocation philosophy of investing in opportunities to grow the business and drive strong returns, prioritizing our dividend, and repurchasing shares with remaining free cash flow,” the company shared.

Dividends, it should be noted, are a mixed bag. They reward shareholders, but they also divert cash from other priorities.

Keeping up a dividend streak for 49 years suggests that McDonald’s may have had years when its money could have been used in better places. That might be true now, as the company’s kiosk-based ordering system could clearly use more investment.