The Wall Street Journal-20080117-McDonald-s Lays Out Growth Plans
Return to: The_Wall_Street_Journal-20080117
McDonald's Lays Out Growth Plans
McDonald's Corp.'s growth plans this year call for $2 billion in capital spending, up slightly from last year's $1.9 billion, most of which will go overseas as it shaves U.S. investment.
The fast-food giant also told investors it intends to return between $15 billion to $17 billion to shareholders by the end of next year. The company didn't say how that would be done, but McDonald's has said it will return money to investors through dividends and share repurchases. The dividend, at $1.50 a share, is more than six times higher than it was in 2002, Chief Financial Officer Pete Bensen said.
About half the capital expenditures in 2008 will support the opening of 1,000 or so new restaurants, with the rest financing efforts to improve the images of 1,600 locations, Mr. Bensen said.
McDonald's added 800 restaurants world-wide last year. Expansion plans call for at least 125 new units in China. Between 35 and 40 restaurants will be opened in Russia.
McDonald's convenience push calls for opening more of its U.S. restaurants as early as 5 a.m.
