Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

multigraincracker

(34,856 posts)
8. Cry me a river. Look how much McDonalds is spending on Stock Buy Backs.
Tue Dec 3, 2024, 02:59 PM
Dec 3

Those are a gift to management that get their compensation is stocks.

Overall, U.S. publicly traded companies bought $198.8 billion worth of shares in the second quarter, up 11.6% from the first quarter and up 124% from the same period a year ago, according to the S&P Dow Jones Indices. Share buybacks were expected to remain elevated for the rest of the year.

Companies buy back shares and pay out dividends when they have extra cash and are feeling confident in their business prospects. Such programs became less common last year when the pandemic hit and the economy suffered with it.

McDonald’s suspended its $15 billion share buyback program in March of last year, when it appeared that business would be suppressed for an uncertain period of time. In short, McDonald’s along with many other restaurant chains opted to hoard cash as part of a survival strategy. It also enabled the company to give operators royalty and other breaks to ensure they would remain open.

Recommendations

0 members have recommended this reply (displayed in chronological order):

Latest Discussions»General Discussion»Popular Information / Jud...»Reply #8