7 Best Beverage Stocks that Pay Dividends

3. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Funds Holders: 67

McDonald’s Corporation (NYSE:MCD) operates and franchises restaurants under the McDonald’s brand. It has developed a presence in the United States as well as in international markets. The company offers beverages, such as shakes, juices, coffee, and tea.

McDonald’s Corporation (NYSE:MCD) reported consolidated revenue of $6.5 billion in the second quarter of 2024 and generated $3.5 billion in restaurant margins with an adjusted operating margin of 46% YTD. However, they were offset by business transformation efforts and investments in digital technology. This is bringing growth for the company as loyalty membership has surged to $166 million, contributing 25% to the system-wide sales. The growth is boosting digital market share while enhancing insights into customer preferences and behaviors.

However, global comparable sales fell 1% due to mixed international performance. The company reported that weaker performance in France and China offset the gains in Latin America and Japan. This drop was primarily driven by geopolitical tensions due to the Israel-Palestine war and cautious consumer spending.

Over the past several years, inflation has driven up costs by 20% to 40% in multiple markets. This has disrupted the long-term value programs of the company and affected the purchasing patterns of customers. McDonald’s Corporation (NYSE:MCD) reported adjusted earnings per share of $2.97 for the quarter, which is 5% less than the prior year period, mainly due to higher tax rates, higher interest expense, and lower other nonoperating income.

McDonald’s recently announced its largest regional expansion in over two decades, planning to open more than 200 new restaurants in the UK. The company is planning to invest $1.31 billion in the project over the next few years.

This resulted in McDonald’s Corporation (NYSE:MCD) stock experiencing a 9% increase in August. The latest quarterly dividend payment was $1.67 per share, yielding 2.29%, as of September 15. At the end of Q2 2024, 67 hedge funds have invested a total of $2.1 billion in the company, as per Insider Monkey’s database. Moreover, analysts predict an upside of 4.75% in the share price of the company, earning MCD a place on our list of best beverage stocks to buy.