McDonald's shares hit all-time high
OAK BROOK -- McDonald's stock surged 6.1 percent to an all-time high Thursday after the fast-food chain announced the largest dividend increase in its history and pledged to return more money to shareholders than Wall Street expected.
The dollar's record low against the euro also boosted McDonald's, which has more than 6,000 restaurants in Europe.
Shares in the company rose $3.10 to $54.30 in heavy Thursday trading after reaching a new high-water mark of $54.68.
The increase came a day after McDonald's raised its annual dividend by 50 cents per share to $1.50 on Wednesday afternoon and said it expects to return between $15 billion and $17 billion in cash to shareholders through dividends and share buybacks between 2007 and 2009.
Morgan Stanley analyst Mark Wiltamuth said McDonald's is effectively doubling its goals for annual return of cash to shareholders.
"Given the company's stronger than expected sales trends in U.S., Europe and Asia Pacific and now this larger-than expected buyback and dividend goal, we are increasing our earnings estimates and price target," he said in a note to investors.