Arcos Dorados Holdings Inc. (ARCO) To Go Ex-Dividend on September 21st

Arcos Dorados Holdings Inc. (NYSE:ARCO) declared a quarterly dividend on Wednesday, March 18th. Shareholders of record on Monday, September 21st will be given a dividend of 0.07 per share by the restaurant operator on Friday, September 25th. This represents a c) dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend is Monday, September 21st.

Arcos Dorados has raised its dividend payment by an average of 0.2%annually over the last three years and has increased its dividend every year for the last 1 years. Arcos Dorados has a payout ratio of 15.0% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Arcos Dorados to earn $0.86 per share next year, which means the company should continue to be able to cover its $0.12 annual dividend with an expected future payout ratio of 14.0%.

Arcos Dorados Stock Down 1.4%

NYSE ARCO opened at $7.54 on Friday. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.88 and a quick ratio of 0.81. The stock has a market capitalization of $1.59 billion, a PE ratio of 6.18 and a beta of 0.49. Arcos Dorados has a 1 year low of $6.54 and a 1 year high of $9.75. The business’s 50-day moving average is $8.09 and its 200 day moving average is $8.33.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings results on Friday, August 14th. The restaurant operator reported $0.22 EPS for the quarter, beating analysts’ consensus estimates of $0.15 by $0.07. Arcos Dorados had a return on equity of 12.50% and a net margin of 5.15%.The business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.28 billion. Sell-side analysts forecast that Arcos Dorados will post 0.79 earnings per share for the current year.

Analysts Set New Price Targets

Several research firms have weighed in on ARCO. JPMorgan Chase & Co. raised Arcos Dorados from a “neutral” rating to an “overweight” rating and lifted their price objective for the company from $9.00 to $10.50 in a research report on Friday, July 17th. Zacks Research cut shares of Arcos Dorados from a “strong-buy” rating to a “hold” rating in a report on Monday, August 10th. Wall Street Zen raised Arcos Dorados from a “hold” rating to a “buy” rating in a research report on Saturday, May 23rd. Finally, Weiss Ratings downgraded Arcos Dorados from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $10.50.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc is the largest independent McDonald’s franchisee in the world and operates McDonald’s restaurants across Latin America and the Caribbean. The company holds the exclusive right to own, operate and franchise McDonald’s restaurants in numerous markets throughout the region.

Its restaurants offer McDonald’s core menu of hamburgers, cheeseburgers, chicken products, french fries, breakfast items, beverages and desserts, along with regionally adapted products. Arcos Dorados also serves customers through drive-thru locations, delivery, mobile ordering and other digital channels.

Arcos Dorados was established in 2007 following the acquisition of McDonald’s operations in Latin America from McDonald’s Corporation.