Shares in McDonald's rose almost 1 percent to $62.83 in after-market trade following the announcement, which brings the company's quarterly dividend payout to more than $550 million.

"We are confident in our ability to invest in key growth opportunities and maintain a strong credit rating even as we return a significant amount of cash to shareholders," McDonald's Chief Executive Jim Skinner said in a statement.

McDonald's has been outperforming most of its rivals in the restaurant industry by focusing on value and convenience.

The Oak Brook, Illinois-based company plans to return $15 billion to $17 billion in cash to shareholders from 2007 to 2009.

It returned $5.7 billion to shareholders in 2007 and $5.1 billion so far this year via a combination of dividends and share repurchases.

McDonald's has raised its dividend each year since its first payout to shareholders in 1976.

Shares in the company, which closed at $62.27 on the New York Stock Exchange, are up nearly 6 percent so far this year.

(Reporting by Michele Gershberg and Lisa Baertlein, editing by Leslie Gevirtz and Bernard Orr)