To keep its commitment to shareholders, the company is leveraging its balance sheet, borrowing $10 billion to fund the scheduled dividends and stock repurchases. Refranchising stores helps, too.
How long can they keep that up?
They can only sell McOpCos once and it appears they are about done.
This week comes more LAYOFFS under project ATLAS
McDonald’s is in the process of borrowing $10 billion and paying out a total of $30 billion to shareholders by the end of 2016 in dividends and share buybacks. Right after McDonald’s announced the increased debt, the ratings agencies cut McDonald’s credit rating to three notches above junk. That could mean higher borrowing costs for franchisees.Modern & Progressive .... and mortgaging our future.
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