McDonald's serves up dividend and buyback plan

The fast food giant announced plans to return between $18 billion and $20 billion to shareholders between 2014 and 2016.

By MSN Money Partner May 28, 2014 10:06AM
A sign stands outside of a McDonald's restaurant in San Francisco © Justin Sullivan/Getty ImagesBy CNBC.com staff

McDonald's (MCD) on Wednesday said it plans to return $18 billion to $20 billion to shareholders between 2014 and 2016 through a combination of dividends and share repurchases.

The plan represents a 10 percent to 20 percent increase over the amount of cash returned to investors between 2011 and 2013. CNBC on MSN Money

The company also said it plans to refranchise at least 1,500 restaurants by the end of 2016, primarily in Asia/Pacific, Middle East and Africa (APMEA), and Europe.

Senior Executive Vice President and Chief Financial Officer Pete Bensen said in a statement: "Our three-year cash return target is based on several activities, including the significant free cash flow generated from our operations, as well as the use of cash proceeds from our debt additions and refranchising activity."

The fast-food chain's shares traded lower following the announcement.

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298Comments
May 28, 2014 11:48AM
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You people crying about a living wage are a real laugh riot.  Well, not really.  It is so sad how low your goals and expectations are actually.  A staff position at McDonald's is a place to get your feet wet or earn a couple bucks to SUPPLEMENT income.  Instead, you folks make this out as a career.  You are the people that are taking this country down and not the so called greedy shareholders.  The bulk of the shareholders have a 401k don't you know.  It isn't just some mythical fat cat.

McDonald's and Taco Bell have lost their way.  They ruled in the 70s, 80s and 90s.  They had a staff made up largely of minors that higher goals in life.  Now they staff there shops with adults that can't be told what to do.  The evidence is in filthy dining rooms, slow service and poor execution.  And for this they think they deserve a raise???  Customers can see this.  The evidence will one day show itself in earnings.

May 28, 2014 11:32AM
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SORRY, but not to sound cruel, but I have to side with another "reply" commenter...

Shareholders are a majority owner of the Company..

McD's was not meant nor will ever be a career for MOST employees..

An individual can work their way up and probably get better pay and benefits..

But shareholders and owners burden "the risk of failure or loss."

And without them in some communities; 20-30 jobs would not be available at a location..

Those are part time and full time jobs, and bring in cash and trade into a Community.

Plus job training for younger individuals...


I have "no dog in the fight" as an owner, stockholder or employee...

But years past Mickey D's has given our kids or G-kids a chance at improvement and they all moved on to much better things and jobs...I don't remember them crying or whining a lot about it either, unless they had to "open early" or "stay real late"...

I'm glad they were around in the 50s and 60s to get cheap burgers and fries...For us..

May 28, 2014 12:27PM
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Higher pay = $12 Big Mag = No more McD jobs. Once the investors and Risk taking franchise owners don't make any money they close up shop and move on to something else. You want more money go find a career.
May 28, 2014 11:16AM
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They should buy back that new clown. Ronald McDonald was a classic for kids.
May 28, 2014 11:51AM
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These fast food workers do not deserve a raise. I have seen the workers work and they do not impress me. Not much initiative in most of the workforce. The managers are workers and managers. They deserve the money they make. It is not minimum wage.
May 28, 2014 1:31PM
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Corporation don't buy back their own stock if they think it is in trouble. That probably means that they see the min wage issue and realize that the answer is automation and a pile of losers unemployed!
May 28, 2014 2:49PM
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Its been five years since Obama's $800 Billion economic stimulus started, based on his lie of "SHOVEL READY JOBS".   
That should have been a economic boost equal to what happened when the $341 Billion spent during World War II resulted in full employment.  
Where did all the $800 BILLION of stimulus money go?! .....THAT should be the question ... not how much we pay people to flip burgers! 
Why doesn't MSN have a series of articles on that? 
May 28, 2014 3:16PM
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If the jobs were here and people could advance but were choosing not to and holding back our nation this would be an issue.  But employment beyond the service industry or assembly doesn't exist in America anymore.  This is because those that pretend to be patriots would sell out the people that produce natural resources here by pitting them against foreign producers to push prices down and bankrupt American companies and ship money overseas. The US is rich in natural resources and the ability to create items from start to finish here but the traitors that would cause American companies to fail, put workers on the streets, and do everything possible to circumvent American competition have total control over the US and will continue to ship and hold money overseas rather than reinvest here.  The best way to put people back to work is to raise tariffs and get companies to buy materials for their final products here.  Assembled in America means nothing compared to Made in America.  Assembly takes a lot less skill than running the machines that make the parts that are being assembled.  Prices may rise at first but in the long run it will spawn many small companies that have the ability to adjust to changing markets faster through fewer layers of administration leading to efficiencies that the current "too big to fail" companies lack.  Business practices are better at small companies as well since workers can actually meet those that employ them and hold them accountable without the absurdly large unions that are currently needed to combat absurdly large companies.

 

The US has fallen behind because she has been systematically sold out to a corporate system that lacks accountability.

May 28, 2014 1:21PM
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These people complaining about a living wage can buy a franchise and assume the same risks and headaches as other franchise owners.  The success of McDonalds or any other franchise or business generally is based on financial models with certain givens.  Start fiddling with those constant or fixed amounts and, you will see the businesses start to fail.  Failed businesses equals increased unemployment.  Increased unemployment equals fewer dollars going into the economy which eventually costs more jobs.
May 28, 2014 3:07PM
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If the workers want more money (what worker doesn't want more money), and the corporation can afford to pay them a little more, I suggest they pay it in stock. Give the workers a reason to move a little faster and fill my order with a little more accuracy. If that doesn't suit the workers, let them find a better job.
May 28, 2014 11:11AM
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How about GoodWill too. They pay people .60 cents an hour because they are on disability. etc. and the regional managers make 300,000 +.
May 28, 2014 3:28PM
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Wake up folks. McD workers wan’t $15 an hour for what? $15 an hour at 35 hours a week and 52 weeks a year = $27,000+ a year. US Military, E4 with OVER 3 years experience = $26,600. McD worker gets to flip burgers and hand out toys. If you don't know what a military member has to do I won’t waste any more time on you. McD is an entry level position - just like Wally-World and a hundred other places. Want more - get an education. Lots of McD and Wally-World folks started at min wage, got an education, and are now management FOR THOSE SAME corporations. Progression in life = your ambition FOR life.

May 28, 2014 3:19PM
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America has never guaranteed  a wage for everyone that will support an individual let alone a family. Education and hard work get better paying jobs.  Forcing an employer to pay more than a job is worth is socialism.  Minimum wage sets the pay for unskilled, non technical jobs.  Just because you are overqualified does not mean you should get paid more.  It used to be that you did as good a job as possible and looked for a better paying job.  The employer is not responsible for your future.  He/she is responsible for paying you for the work you perform at the agreed price per hour.  Once again we are looking at someone else to take care of us.  Take care of yourself.  Work harder than the guy next to you. Get some sort of education.  Keep your eyes open for something better.  If your idea of success is minimum wages then you are probably going to be the last person to rise above minimum.  Wanting more is not equal to deserving more. 
May 28, 2014 3:49PM
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I love how we're debating about how Mickey D's pays so little and yet the goverment spends our hard earned tax payer money, manages to put us in debt trillions of dollars with so little to show for it. Thank you media for diverting our attention elsewhere...
May 28, 2014 1:28PM
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The ruling class is doing very well.   The rest of us are on our own. 
May 28, 2014 5:28PM
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Heres a thought There are no more good paying ****ing jobs anymore they all went overseas. Obama needs to step up and tell them companies to get back over here where they belong or they can keep their products and shove them up their asses, Now that's stepping it up.
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Sounds like the cry babies should be investing in stock, instead of crying for more money!
May 28, 2014 2:50PM
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Going Public is the Worst thing a Company Can Do, Glad to see Mcdonalds getting some of it's shares back away from the Profit Hungry Investors. It just creates a Vicious Cycle of cutting Costs & Services just to please the Investors that don't care about anything but Profitability.
May 28, 2014 4:22PM
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They might try paying a living wage instead of putting their employees on government assistance on my tax dollars.
May 28, 2014 6:53PM
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Wow, reading some of these comments it is absolutely amazing to me how IGNORANT most people are when it comes to food service employment.  Started working in restaurants at the age of 12 (1975) by the time I was 19 (1982) I was earning a little over $825/wk. that was in 1982. Lets move forward to 2003,  Now I have a degree in Business, graduated with honors no less, oh lets not forget the 25 years of working experience.  GUESS WHAT-- Base pay starting for management still in the same range.  That is 20 yrs later people, and pay has not gone up.  Don't give me your garbage about you don't deserve it or you haven't earned it.  By GOD when a company can pay BILLIONS to shareholders in dividends they can afford to pay their employees a better wage.
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