McDonalds 2015 Annual Report Download - page 12

10 McDonald's Corporation 2015 Annual Report
PART II
ITEM 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of
Equity Securities
MARKET INFORMATION AND DIVIDEND POLICY
The Company’s common stock trades under the symbol MCD and is listed on the New York Stock Exchange in the U.S. The following table
sets forth the common stock price ranges on the New York Stock Exchange and dividends declared per common share:
2015 2014
Dollars per share High Low Dividend High Low Dividend
Quarter:
First 101.09 88.77 0.85 99.07 92.22 0.81
Second 101.08 94.02 0.85 103.78 96.52 0.81
Third 101.88 87.50 0.85 101.36 90.53 1.66 *
Fourth 120.23 97.13 0.89 97.50 87.62
Year 120.23 87.50 3.44 103.78 87.62 3.28
* Includes a $0.81 per share dividend declared and paid in third quarter, and a $0.85 per share dividend declared in third quarter and paid in fourth quarter.
The number of shareholders of record and beneficial owners of the Company’s common stock as of January 31, 2016 was estimated to
be 1,579,000.
Given the Company’s returns on equity, incremental invested capital and assets, management believes it is prudent to reinvest in the
business in markets with acceptable returns and/or opportunity for long-term growth and use excess cash flow to return cash to
shareholders through dividends and share repurchases. The Company has paid dividends on common stock for 40 consecutive years
through 2015 and has increased the dividend amount at least once every year. As in the past, future dividend amounts will be considered
after reviewing profitability expectations and financing needs, and will be declared at the discretion of the Company’s Board of Directors.
ISSUER PURCHASES OF EQUITY SECURITIES
The following table presents information related to repurchases of common stock the Company made during the quarter ended
December 31, 2015*:
Period
Total Number of
Shares Purchased
Average Price
Paid per Share
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs(1)
Approximate Dollar
Value of Shares
that May Yet
Be Purchased Under
the Plans or Programs(1)
October 1-31, 2015 2,499,205 102.66 2,499,205 $ 3,164,474,231
November 1-30, 2015 5,016,418 112.97 5,016,418 2,597,749,457
December 1-31, 2015 6,103,069 116.70 6,103,069 1,885,526,160
Total 13,618,692 112.75 13,618,692
* Subject to applicable law, the Company may repurchase shares directly in the open market, in privately negotiated transactions, or pursuant to derivative
instruments and plans complying with Rule 10b5-1, among other types of transactions and arrangements.
(1) On May 21, 2014, the Company's Board of Directors approved a share repurchase program, effective July 1, 2014 ("2014 Program"), that authorized the purchase
of up to $10 billion of the Company's outstanding common stock with no specified expiration date. On December 3, 2015, the Company's Board of Directors
terminated the 2014 Program, effective December 31, 2015, and replaced it with a new share repurchase program, effective January 1, 2016 ("2016 Program"),
that authorizes the purchase of up to $15 billion of the Company's outstanding common stock with no specified expiration date. As of December 31, 2015, no
further share repurchases may be made under the 2014 Program; future share repurchases will be made pursuant to the 2016 Program.
On February 12, 2016, the Company paid $2.7 billion under an Accelerated Share Repurchase agreement and received an initial delivery of
18.5 million shares, which represents 80% of the total shares the Company expects to receive based on the market price at the time of initial
delivery. The final number of shares delivered upon settlement of the agreement, between April 1, 2016 and May 13, 2016, will be
determined with reference to the volume weighted average price per share of the Company's common stock over the term of the
agreement, less a negotiated discount.