
McDonald's stock splits have had a significant impact on the company's performance over the years. In 1976, McDonald's completed its first stock split, increasing the number of shares outstanding from 19 million to 38 million.
This move was likely done to make the stock more attractive to investors, particularly small investors who may not have been able to afford a single share before the split. McDonald's stock price at the time of the split was around $22 per share.
One notable effect of the 1976 stock split was a significant increase in trading volume, with the number of shares traded per day rising from 200,000 to 1 million. This increased liquidity made it easier for investors to buy and sell McDonald's stock.
The stock split also seemed to have a positive impact on the company's stock price, with it rising from $22 per share in 1976 to $40 per share by the end of the year.
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McDonald's Stock Split News
McDonald's has a history of stock splits, with three in just four years. The company's chairman and CEO, Fred L. Turner, is excited about this record, citing the hard work of employees, franchises, and suppliers who have built the business.
The new quarterly cash dividend on common stock amounts to 16.5 cents per share, or 24.75 cents per share on a pre-split basis. This is a 10 percent increase from the current dividend of 15 cents per share, or 22.5 cents per share on a pre-split basis.
Common shareholders of record on June 3 will receive one additional share of common stock for every two shares held on that date as a result of the split. This additional share will be payable on June 25.
McDonald's has a long history of stock splits, with eight splits and one stock dividend since going public in 1965. This has made the company's shares more accessible to small investors, as Douglas Christopher, an analyst with Crowell, Weedon & Company, notes.
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The company's stock split will increase the number of outstanding shares to 707.8 million from 353.9 million. This is the company's 11th stock split since it first sold shares to the public in 1965.
Investors who purchase the split shares on a when-issued basis will not be entitled to receive the cash dividend.
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Understanding Stock Splits
A stock split is a way for companies to increase the number of their outstanding shares without actually issuing new stock. This can make the stock more attractive to investors.
McDonald's has a history of stock splits, with the first one occurring in 1976, when the company split its stock 2-for-1. This means that for every share of stock an investor owned, they received one additional share.
Stock splits can be 2-for-1, 3-for-2, or even 4-for-3, and they're usually done to make the stock more affordable for investors. They don't actually change the value of the company or the stock, but they can make it seem like the stock is cheaper.
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In 2004, McDonald's split its stock 2-for-1, and in 2010, it split its stock again, this time 3-for-2. These splits helped to increase the number of shares outstanding, but they didn't change the overall value of the company.
The goal of a stock split is to make the stock more appealing to investors, but it's worth noting that the actual value of the company doesn't change. The split is simply a way to make the stock more divisible, which can make it easier to buy and sell.
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Company News
McDonald's has a history of stock splits, with the company declaring its 11th split since going public in 1965. The most recent split was a 2-for-1 split, which increased the number of outstanding shares to 707.8 million from 353.9 million.
The company raised its quarterly dividend 12 percent, to 12 cents, on each pre-split share in 1983. This was a significant increase, but the company has continued to raise its dividend over the years.
McDonald's has a long history of making its shares more accessible to small investors. The company split its stock to make it easier for small investors to buy, with Douglas Christopher, an analyst with Crowell, Weedon & Company, noting that the typical small investor finds it easier to buy at 30 than 100 shares.
In January, McDonald's announced plans to repurchase $1 billion worth of shares within the next three years. The company has already repurchased about $2.2 billion of its stock in the last 10 years.
The company's chairman and chief executive officer, Fred L. Turner, highlighted the benefits of the stock split, noting that it has widened McDonald's margin of leadership.
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Frequently Asked Questions
How many times has McDonald's stock split?
McDonald's stock has split 12 times since going public in 1965. This significant milestone reflects the company's growth and commitment to shareholder value.
Sources
- https://www.upi.com/Archives/1986/05/23/McDonalds-splits-stock-raises-dividend/2238517204800/
- https://www.investopedia.com/companies-with-most-stock-splits-8709383
- https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/stock-splits
- https://www.nytimes.com/1994/05/28/business/company-news-mcdonald-s-plans-2-for-1-stock-split.html
- https://companiesmarketcap.com/mcdonald/dividends/
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