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

Arcos Dorados Holdings Inc. (NYSE:ARCO) announced a quarterly dividend on Wednesday, March 18th. Investors of record on Monday, June 22nd will be given a dividend of 0.07 per share by the restaurant operator on Friday, June 26th. This represents a c) annualized dividend and a yield of 3.6%. The ex-dividend date is Monday, June 22nd.

Arcos Dorados has increased its dividend by an average of 0.2%annually over the last three years and has raised its dividend annually for the last 1 consecutive years. Arcos Dorados has a payout ratio of 30.0% indicating that its dividend is sufficiently covered by earnings. 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%

Arcos Dorados stock traded down $0.02 during mid-day trading on Thursday, hitting $7.68. The company had a trading volume of 1,178,375 shares, compared to its average volume of 1,307,231. 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 has a 1 year low of $6.51 and a 1 year high of $8.98. The business has a fifty day moving average of $8.16 and a 200 day moving average of $7.51.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings data on Thursday, March 19th. The restaurant operator reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.20 by ($0.08). Arcos Dorados had a return on equity of 20.42% and a net margin of 5.39%.The company had revenue of $1.27 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same quarter in the prior year, the firm posted $0.28 EPS. The firm’s quarterly revenue was up 10.7% compared to the same quarter last year. As a group, sell-side analysts predict that Arcos Dorados will post 0.63 EPS for the current year.

Analysts Set New Price Targets

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