Arcos Dorados Holdings Inc. (NYSE:ARCO) to Issue Quarterly Dividend of $0.07

Arcos Dorados Holdings Inc. (NYSE:ARCO) declared a quarterly dividend on Wednesday, March 18th. Investors of record on Wednesday, December 23rd will be paid a dividend of 0.07 per share by the restaurant operator on Tuesday, December 29th. This represents a c) dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date of this dividend is Wednesday, December 23rd.

Arcos Dorados has increased its dividend by an average of 0.2%per year over the last three years and has raised its dividend annually for the last 1 consecutive years. Arcos Dorados has a dividend payout ratio of 30.0% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Arcos Dorados to earn $0.73 per share next year, which means the company should continue to be able to cover its $0.24 annual dividend with an expected future payout ratio of 32.9%.

Arcos Dorados Stock Down 0.2%

NYSE ARCO traded down $0.02 during trading hours on Thursday, reaching $7.68. 1,178,375 shares of the company were exchanged, compared to its average volume of 1,307,231. Arcos Dorados has a 1 year low of $6.51 and a 1 year high of $8.98. The business’s 50 day simple moving average is $8.16 and its 200-day simple moving average is $7.51. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.81 and a current ratio of 0.89.

Arcos Dorados (NYSE:ARCO) last released its earnings results on Thursday, March 19th. The restaurant operator reported $0.12 earnings per share for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.08). Arcos Dorados had a net margin of 5.39% and a return on equity of 20.42%. The company had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter in the previous year, the firm earned $0.28 earnings per share. The firm’s revenue was up 10.7% compared to the same quarter last year. On average, equities research analysts predict that Arcos Dorados will post 0.63 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms recently commented on ARCO. Weiss Ratings reiterated a “hold (c-)” rating on shares of Arcos Dorados in a research note on Monday, December 29th. Zacks Research raised Arcos Dorados from a “strong sell” rating to a “hold” rating in a research report on Friday, November 21st. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, Arcos Dorados presently has an average rating of “Hold” and an average target price of $8.70.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc is the largest independent McDonald’s franchisee in the world, operating under an exclusive license agreement with McDonald’s Corporation. The company develops, owns and operates quick-service restaurants, offering the full McDonald’s menu, including hamburgers, chicken sandwiches, salads, sides, desserts and McCafé beverages. In addition to restaurant operations, Arcos Dorados manages supply chain logistics, property development, training and support services for its franchise network.

Headquartered in Montevideo, Uruguay, Arcos Dorados serves 20 markets across Latin America and the Caribbean, including Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico and Uruguay.