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

Arcos Dorados Holdings Inc. (NYSE:ARCO) announced a quarterly dividend on Tuesday, March 12th, Wall Street Journal reports. Shareholders of record on Tuesday, September 24th will be paid a dividend of 0.06 per share by the restaurant operator on Friday, September 27th. This represents a $0.24 dividend on an annualized basis and a yield of 2.87%. The ex-dividend date is Tuesday, September 24th.

Arcos Dorados has increased its dividend payment by an average of 57.5% per year over the last three years. Arcos Dorados has a payout ratio of 27.9% meaning its dividend is sufficiently covered by earnings. Research analysts expect Arcos Dorados to earn $0.88 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 27.3%.

Arcos Dorados Stock Performance

Shares of Arcos Dorados stock opened at $8.35 on Friday. Arcos Dorados has a fifty-two week low of $8.08 and a fifty-two week high of $13.20. The company has a debt-to-equity ratio of 1.52, a current ratio of 0.63 and a quick ratio of 0.57. The firm has a market capitalization of $1.76 billion, a P/E ratio of 10.31, a P/E/G ratio of 2.34 and a beta of 1.17. The company’s 50 day moving average price is $9.16 and its two-hundred day moving average price is $9.94.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings results on Wednesday, August 14th. The restaurant operator reported $0.13 EPS for the quarter, hitting analysts’ consensus estimates of $0.13. The company had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.06 billion. Arcos Dorados had a net margin of 3.80% and a return on equity of 36.55%. Arcos Dorados’s revenue was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.14 earnings per share. On average, equities analysts forecast that Arcos Dorados will post 0.73 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Separately, JPMorgan Chase & Co. cut their price target on shares of Arcos Dorados from $14.00 to $12.00 and set an “overweight” rating on the stock in a report on Friday, September 13th.

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.