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

Key Points

• Arcos Dorados Holdings Inc. announced a quarterly dividend of $0.06 per share, set to be paid on September 26th, with an annualized yield of 3.6%.
• The company reported earnings of $0.11 per share for the last quarter, surpassing analyst expectations, but revenue was slightly below estimates at $1.14 billion.
• Arcos Dorados has a dividend payout ratio of 30.0% and is expected to maintain its future dividends, as analysts forecast earnings of $0.73 per share next year.

Arcos Dorados Holdings Inc. (NYSE:ARCO - Get Free Report) announced a quarterly dividend on Tuesday, March 11th. Shareholders of record on Tuesday, September 23rd will be given a dividend of 0.06 per share by the restaurant operator on Friday, September 26th. This represents a c) annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend is Tuesday, September 23rd.

Arcos Dorados has a dividend payout ratio of 30.0% meaning its dividend is sufficiently covered by earnings. Equities research 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

Arcos Dorados stock traded up $0.06 during trading hours on Tuesday, hitting $6.97. 685,958 shares of the stock traded hands, compared to its average volume of 1,488,927. The stock has a market capitalization of $1.47 billion, a price-to-earnings ratio of 11.06, a P/E/G ratio of 1.31 and a beta of 0.63. The firm's 50 day moving average price is $7.01 and its 200-day moving average price is $7.43. The company has a debt-to-equity ratio of 1.62, a current ratio of 0.80 and a quick ratio of 0.73. Arcos Dorados has a 1 year low of $6.51 and a 1 year high of $10.27.

Arcos Dorados (NYSE:ARCO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 13th. The restaurant operator reported $0.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.06. The business had revenue of $1.14 billion during the quarter, compared to analysts' expectations of $1.22 billion. Arcos Dorados had a return on equity of 24.54% and a net margin of 2.89%.The company's revenue for the quarter was up 2.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.13 EPS. As a group, equities analysts expect that Arcos Dorados will post 0.63 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Wall Street Zen raised Arcos Dorados from a "hold" rating to a "buy" rating in a report on Saturday, September 13th. JPMorgan Chase & Co. cut Arcos Dorados from an "overweight" rating to a "neutral" rating and decreased their price objective for the company from $10.50 to $8.80 in a report on Wednesday, July 2nd. One analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $8.80.

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.