NEW YORK (
Bob Evans Farms Inc.
is sweetening the pot for shareholders.
After Wednesday's closing bell, the Columbus, Ohio-based casual restaurant operator said its board has approved an 11.1% increase in its quarterly cash dividend to 20 cents a share from 18 cents.
The higher dividend will be payable on Sept. 21 to shareholders of record on Sept. 7. Based on Wednesday's closing price of $25.45, the move will boost the forward annual yield on the stock to 3.1% from 2.8%.
"Increasing our dividend at the same time that we are repurchasing shares demonstrates our ongoing commitment to our stockholders," said Steve Davis, the company's chairman and CEO, in a statement.
Bob Evans announced its fiscal first-quarter results on August 17, posting a profit of $12.5 million, or 41 cents a share, for the three months ended July 30. That performance came in 3 cents short of the average estimate of analysts polled by
. The company also reaffirmed its outlook for operating income of $105 million to $110 million in fiscal 2011 on sales of $1.7 billion.
Year-to-date, the stock is down about 14%, and it's fallen roughly 25% since hitting a 52-week high of $34 on April 26.
Written by Michael Baron in New York.
>To contact the writer of this article, click here:
>To submit a news tip, send an email to:
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.