McDonald’s suspends share buyback amid coronavirus, leaves dividend unchanged

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McDonald’s suspends share buyback amid coronavirus, leaves dividend unchanged

On Friday, the 20th of March 2020, in an interview with the NBCUniversal-owned American business news channel, CNBC, the world’s largest fast-food chain operator, McDonald’s Chief Executive said that the company’s management board had decided unanimously to postpone a slated share buyback program amid rising scepticisms over the financial repercussions of coronavirus pandemic, nonetheless, the CA-based fast food chain operator had pledged to keep its dividend policy unchanged despite stiffer lockdowns in a number of US states, enforcing a mandatory shutdown of US restaurants, shopping malls and businesses.

On top of that, latest McDonald’s Corp. decision to cancel its share repurchase program came forth shortly after the US state of Texas had declared a national health crisis in more than 100 years, while industry analysts said the Texas move would follow similar measures from other US States.

In point of fact, the fast-food chain, which has raised dividends for 43 straight years in a row, had announced earlier this year a quarterly cash dividend of $1.25 per common stock due on March 16th, nearly 8 per cent higher on a year-on-year basis.

Nonetheless, although McDonald’s Corp. CEO’s strident tone to pay off the dividends, it remains to be seen whether the world’s No. 1 fast food chain operator could weather a withering business outlook amid a stiffer country-wide lockdown looming on the horizon.

McDonald’s Corp. alongside Coffee house operator Starbucks had cancelled all of its in-dine services in the United States earlier this week.