Arcos Dorados Holdings Inc. to Issue Quarterly Dividend of $0.06 (NYSE:ARCO)

Arcos Dorados Holdings Inc. (NYSE:ARCO) declared a quarterly dividend on Tuesday, March 12th, Wall Street Journal reports. Shareholders of record on Tuesday, June 25th will be paid a dividend of 0.06 per share by the restaurant operator on Friday, June 28th. This represents a $0.24 dividend on an annualized basis and a yield of 2.68%. The ex-dividend date is Tuesday, June 25th.

Arcos Dorados has raised its dividend payment by an average of 57.5% per year over the last three years. Arcos Dorados has a dividend payout ratio of 24.7% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Arcos Dorados to earn $1.01 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 23.8%.

Arcos Dorados Stock Performance

Shares of NYSE ARCO opened at $8.97 on Monday. The business’s 50-day moving average price is $10.24 and its two-hundred day moving average price is $11.30. The company has a debt-to-equity ratio of 1.47, a current ratio of 0.66 and a quick ratio of 0.60. Arcos Dorados has a one year low of $8.59 and a one year high of $13.20. The company has a market capitalization of $1.89 billion, a P/E ratio of 11.07, a price-to-earnings-growth ratio of 1.57 and a beta of 1.23.

Arcos Dorados (NYSE:ARCO) last issued its earnings results on Wednesday, May 15th. The restaurant operator reported $0.14 EPS for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.02). Arcos Dorados had a net margin of 3.90% and a return on equity of 38.57%. The firm had revenue of $1.10 billion during the quarter, compared to analysts’ expectations of $1.02 billion. During the same quarter last year, the firm earned $0.18 EPS. The business’s revenue for the quarter was up 11.0% compared to the same quarter last year. Analysts anticipate that Arcos Dorados will post 0.88 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Separately, StockNews.com lowered Arcos Dorados from a “buy” rating to a “hold” rating in a report on Friday, May 24th. One equities research analyst has rated the stock with a hold rating and three have given a buy rating to the stock. According to MarketBeat, Arcos Dorados presently has an average rating of “Moderate Buy” and a consensus price target of $13.83.

About Arcos Dorados

Arcos Dorados Holdings Inc operates as a franchisee of McDonald's restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S.