7 Best Restaurant Dividend Stocks to Buy

2. McDonald’s Corporation (NYSE:MCD)

Number of Hedge Fund Holders: 63

McDonald’s Corporation (NYSE:MCD) is an Illinois-based fast-food restaurant company. During the 2020 pandemic, the company gained significantly from increased prices, but now customers are resisting higher costs due to inflation. As a result, the company has extended its $5 Meal Deal Promotion. McDonald’s management noted that consumer sentiment, particularly among lower-income groups, remains weak across its major markets, with people being very selective. They anticipate that the challenging environment will persist for several more quarters. It seems that consumers are finally pushing back against the substantial price hikes that have occurred in the fast-food industry over recent years.

McDonald’s Corporation (NYSE:MCD)’s latest earnings report reveals that it is facing some challenges. Global comparable sales fell by 1.0%, with declines observed across all segments. Quarterly revenues were flat compared to the previous year. Despite these setbacks, analysts have not been overwhelmingly negative about the company’s performance. Given its size and scale, the company has significant leverage to adjust through its purchasing power and marketing strategies.

McDonald’s Corporation (NYSE:MCD) declared a quarterly dividend of $1.67 per share on July 26, which fell in line with its previous dividend. It is one of the best dividend stocks on our list as the company has been growing its payouts for 47 consecutive years. The stock supports a dividend yield of 2.47%, as of August 6.

Of the 920 hedge funds tracked by Insider Monkey at the end of Q1 2024, 63 hedge funds held stakes in McDonald’s Corporation (NYSE:MCD). These stakes are collectively valued at roughly $2.3 billion.