A lot of attention has been focused on McDonald’s seeing a change in their customer base.
That’s something CEO Christopher Kempczinski talked about at length during the chain’s third-quarter earnings call.
“In the US, we continue to see a bifurcated consumer base, with QSR traffic from lower-income consumers declining by nearly double-digits in the third quarter, a trend that has persisted for nearly two years. In contrast, QSR traffic growth among higher-income consumers remained strong, growing 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 US and in our top international markets, and we believe the pressures will continue through 2026. Providing industry-leading value is part of McDonald’s DNA. It is a fundamental expectation of our brand to bring consumers through our doors and keep them coming back,” he added.
In the US, this involved promoting Extra Value Meals (EVMs), which were introduced in September with a national advertising campaign.
These include:
-
$5 Sausage McMuffin with Egg Flour
-
$8 Big Mac meal
-
$5 Sausage and Egg McGriddles Meal
-
$8 Meal Chicken McNuggets 10 pieces
In addition to offering lower prices for American consumers, McDonald’s has invested in other areas. This included rewarding investors.
Lower menu prices have not come at the expense of shareholders.
“In terms of capital allocation, our priorities remain unchanged,” CFO Ian Borden said on the call.
He set those priorities.
“First, we invest in opportunities to grow the business and generate strong returns. Second, we return remaining free cash flow to shareholders over time through dividends and share buybacks,” he said.
Borden then noted that McDonald’s is on the edge of very rare territory.
“In terms of return on capital, in October we announced a 5% increase in our dividend, which is our 49th consecutive year of dividend growth. This is a testament to the strength, resilience and long-term value that McDonald’s has provided and expects to continue to provide to our shareholders.
More restaurants
That puts McDonald’s just one year away from becoming the Dividend King.
“Dividend Kings are a select group of Wall Street companies that have consistently increased their dividends for at least 50 consecutive years,” Bankrate said.
(Elite Group – Longest US Dividend Growth Streak)
-
American States Water (AWR): 71 years old
-
Procter & Gamble (PG): 69 years old
-
Parker-Hannifin (PH): 69 years old
-
Genuine Parts Company (GPC): 69 years old
-
Dover Corporation (DOV): 68 years old
-
Northwest Natural Holding (NWN): 68 years old
-
Emerson Electric (EMR): 67 years old
-
3M(MMM) : 65 years
-
Cincinnati Financial (CINF): 63 years old
-
Coca-Cola (KO): 62 years old
-
Johnson & Johnson (JNJ): 62 years old
-
Colgate-Palmolive (CL): 61 years old
-
Lowe’s (LOW): 61 years old
-
Kimberly-Clark (KMB)
-
Illinois Tool Works (ITW)
-
Stanley Black & Decker (SWK)
-
Target (TGT)
-
Sysco (SYY)
-
California Water Service (CWT)
-
Black Hills Corp. (BKH)
-
The SJW Group (SJW)
-
ABM Industries (ABM)
-
Tootsie Roll Industries (TR)
-
Universal Corporation (UVV)
-
HB Fuller (FUL)
-
Walmart (WMT): 50 years
-
PepsiCo (PEP): 52 years old
Many investors prefer companies that pay dividends. Zachs saluted McDonald’s a year ago when it raised its dividend for the 48th year in a row.
“The 6% increase brings the annual dividend payout to $7.08 per share. McDonald’s has a strong track record of rewarding its shareholders. The company has increased its dividend for 48 consecutive years since it was first issued in 1976. This consistency underscores MCD’s commitment to returning capital to its shareholders while balancing investment opportunities in the analyst company’s stock.”
McDonald’s explained the latest dividend increase in a press release.
“McDonald’s has a strong history of returning capital to its shareholders and has increased 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 business development opportunities and generating strong returns by prioritizing dividends and repurchasing shares with remaining free cash flow,” the company said.
Dividends, it should be noted, are a mixed bag. It rewards shareholders but also diverts cash from other priorities.
Maintaining a dividend streak of 49 years suggests that McDonald’s may have had years when its money could have been put to better use. That could be true now, as the company’s kiosk-based ordering system could clearly use more investment.
Related: Coca-Cola is quietly making a massive change to its soda brands
This story was originally published by TheStreet on December 7, 2025, where it first appeared in the Restaurants section. Add TheStreet as a favorite source by clicking here.