Arcos Dorados Holdings Inc. (NYSE:ARCO) to Issue Quarterly Dividend of $0.07
by Danessa Lincoln · The Markets DailyArcos Dorados Holdings Inc. (NYSE:ARCO – Get Free Report) announced a quarterly dividend on Wednesday, March 18th. Stockholders 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 3.6%. The ex-dividend date of this dividend is Monday, September 21st.
Arcos Dorados has increased its dividend by an average of 0.2%per year over the last three years and has raised its dividend every year for the last 1 years. Arcos Dorados has a 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 Down 0.2%
Shares of ARCO stock traded down $0.02 during trading on Thursday, hitting $7.68. The company had a trading volume of 1,178,375 shares, compared to its average volume of 1,307,231. Arcos Dorados has a one year low of $6.51 and a one year high of $8.98. The company has a current ratio of 0.89, a quick ratio of 0.81 and a debt-to-equity ratio of 1.32. The stock’s 50-day moving average price is $8.16 and its 200 day moving average price is $7.51.
Arcos Dorados (NYSE:ARCO – Get Free Report) last posted its quarterly earnings data on Thursday, March 19th. The restaurant operator reported $0.12 EPS for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.08). The company had revenue of $1.27 billion for the quarter, compared to the consensus estimate of $1.26 billion. Arcos Dorados had a return on equity of 20.42% and a net margin of 5.39%.Arcos Dorados’s revenue was up 10.7% on a year-over-year basis. During the same quarter last year, the business earned $0.28 EPS. Analysts forecast that Arcos Dorados will post 0.63 EPS for the current fiscal year.
Key Arcos Dorados News
Here are the key news stories impacting Arcos Dorados this week:
- Positive Sentiment: Company raised its quarterly dividend 16.7% to $0.07 (annualized yield ~3.6%), with record date March 30 and payment April 2 — supportive for income-focused investors.
- Positive Sentiment: Revenue beat estimates: Q4 revenue was roughly $1.27B vs. $1.26B expected and was up ~10.7% year-over-year; management highlighted strong digital channel growth on the earnings call. Article Title
- Neutral Sentiment: Earnings call transcript and full remarks are available for deeper read; useful for investors wanting management color on margins, digital mix and outlook. Article Title
- Negative Sentiment: EPS missed consensus — the company reported roughly $0.12 EPS (versus ~$0.20 consensus), with EPS well below the prior-year $0.28 level; the earnings shortfall is the primary near-term catalyst for the share weakness. Article Title
- Negative Sentiment: Some outlets report Q4 results as a loss on an adjusted basis versus estimates, amplifying the negative reaction; this highlights volatility in EPS presentation and expectations. Article Title
- Negative Sentiment: Arcos Dorados filed audited 2025 financials in a Form 6‑K where the auditor flagged Brazilian tax risks — a potential longer-term liability that increases uncertainty and risk premium on the shares. Article Title
Arcos Dorados Company Profile
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.