Amid low interest rates, McDonald's also plans to add a "meaningful" amount of additional debt, said CFO Kevin Ozan in a release.
"As a result, we are increasing the Company's cash return to shareholders target to about $30 billion for the three-year period ending 2016 - a $10 billion increase over our previous target, with incremental debt funding the vast majority of the increase," he said.
It said in its call that it expects credit rating agencies to cut its rating by a notch, a move S&P made later in the day.
McDonald's hit a new all time high on this news that it will borrow money to buyback stock at record high stock prices. The news will be cheered by the street but the logic of the move has only short term implications. At some point the borrowed money will have to be refinanced at higher interest for shares that have fallen in price.
I pity the fool that buys the stock.