Arcos Dorados Holdings Inc. Announces Quarterly Dividend of $0.07 (NYSE:ARCO)
by Michael Walen · The Markets DailyArcos Dorados Holdings Inc. (NYSE:ARCO – Get Free Report) declared a quarterly dividend on Wednesday, March 18th. Investors of record on Wednesday, December 23rd will be given a dividend of 0.07 per share by the restaurant operator on Tuesday, December 29th. This represents a c) dividend on an annualized basis and a yield of 3.6%. The ex-dividend date is Wednesday, December 23rd.
Arcos Dorados has increased 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 30.0% indicating that 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
ARCO traded down $0.02 during trading on Thursday, hitting $7.68. The stock had a trading volume of 1,178,375 shares, compared to its average volume of 1,307,231. Arcos Dorados has a 12 month low of $6.51 and a 12 month high of $8.98. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.81 and a current ratio of 0.89. The company has a 50 day simple moving average of $8.16 and a 200-day simple moving average of $7.51.
Arcos Dorados (NYSE:ARCO – Get Free Report) last released its earnings results on Thursday, March 19th. The restaurant operator reported $0.12 earnings per share for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.08). The firm had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.26 billion. Arcos Dorados had a return on equity of 20.42% and a net margin of 5.39%.The firm’s revenue was up 10.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.28 EPS. On average, sell-side analysts expect that Arcos Dorados will post 0.63 earnings per share for the current year.
Arcos Dorados News Summary
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.