Key Takeaways

• McDonald’s just raised its dividend for the 50th straight year, while Starbucks’ latest increase was only $0.01 per share.
• Starbucks paid out 113% of its free cash flow in fiscal 2025, although falling capital spending has since brought its TTM cash dividend payout ratio down to 77%.
• McDonald’s TTM cash dividend payout ratio stands at a more comfortable 67%, although slowing U.S. traffic and roughly $8.5 billion of planned franchisee support create new demands on its cash.
• Starbucks’ CFO has emphasized dividend stability and “measured increases,” making future free cash flow growth especially important for shareholders.

McDonald’s (MCD) raised its quarterly dividend to $1.93 from $1.86 on…