Arcos Dorados Holdings Inc. (NYSE:ARCO) Increases Dividend to $0.07 Per Share

Arcos Dorados Holdings Inc. (NYSE:ARCO) announced a quarterly dividend on Wednesday, March 18th. Stockholders of record on Monday, March 30th will be paid a dividend of 0.07 per share by the restaurant operator on Thursday, April 2nd. This represents a c) annualized dividend and a dividend yield of 3.6%. The ex-dividend date of this dividend is Monday, March 30th. This is a 16.7% increase from Arcos Dorados’s previous quarterly dividend of $0.06.

Arcos Dorados has increased its dividend payment 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% meaning 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 Performance

Shares of ARCO stock traded down $0.02 during mid-day trading on Thursday, hitting $7.68. 1,178,375 shares of the stock were exchanged, compared to its average volume of 1,447,062. The stock’s fifty day simple moving average is $8.17 and its two-hundred 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 has a 12-month low of $6.51 and a 12-month high of $8.98.

Arcos Dorados (NYSE:ARCO) last posted 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 net margin of 5.39% and a return on equity of 20.42%. The firm had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same period in the previous year, the company posted $0.28 earnings per share. Arcos Dorados’s revenue was up 10.7% compared to the same quarter last year. On average, research analysts forecast that Arcos Dorados will post 0.63 earnings per share for the current fiscal year.

About Arcos Dorados

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.