Arcos Dorados (NYSE:ARCO) Shares Gap Up on Better-Than-Expected Earnings

Arcos Dorados Holdings Inc. (NYSE:ARCO) shares gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $8.07, but opened at $8.68. Arcos Dorados shares last traded at $8.4690, with a volume of 413,008 shares traded.

The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.11 by $0.06. Arcos Dorados had a return on equity of 8.12% and a net margin of 4.53%.The company had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.21 billion. During the same period last year, the firm posted $0.07 earnings per share. The business’s revenue was up 12.9% on a year-over-year basis.

Arcos Dorados Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 29th. Shareholders of record on Wednesday, December 23rd will be issued a dividend of $0.07 per share. The ex-dividend date of this dividend is Wednesday, December 23rd. This represents a $0.28 annualized dividend and a yield of 3.2%. Arcos Dorados’s dividend payout ratio (DPR) is currently 23.76%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Weiss Ratings reissued a “hold (c)” rating on shares of Arcos Dorados in a research report on Monday, April 27th. The Goldman Sachs Group reiterated a “buy” rating on shares of Arcos Dorados in a research note on Wednesday, April 8th. Wall Street Zen cut shares of Arcos Dorados from a “buy” rating to a “hold” rating in a report on Saturday, April 25th. Finally, Santander upgraded shares of Arcos Dorados to an “outperform” rating in a research report on Monday, April 20th. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, Arcos Dorados presently has a consensus rating of “Hold” and a consensus price target of $8.70.

Institutional Investors Weigh In On Arcos Dorados

Institutional investors have recently modified their holdings of the business. Royal Bank of Canada increased its position in Arcos Dorados by 23.1% during the first quarter. Royal Bank of Canada now owns 538,925 shares of the restaurant operator’s stock worth $4,344,000 after acquiring an additional 101,301 shares during the period. Jane Street Group LLC grew its position in shares of Arcos Dorados by 58.3% during the 1st quarter. Jane Street Group LLC now owns 309,785 shares of the restaurant operator’s stock worth $2,497,000 after purchasing an additional 114,034 shares in the last quarter. Jump Financial LLC acquired a new position in shares of Arcos Dorados during the 2nd quarter worth approximately $1,315,000. WINTON GROUP Ltd increased its holdings in shares of Arcos Dorados by 213.3% during the second quarter. WINTON GROUP Ltd now owns 50,077 shares of the restaurant operator’s stock worth $395,000 after purchasing an additional 34,094 shares during the period. Finally, Nebula Research & Development LLC raised its position in shares of Arcos Dorados by 6.3% in the second quarter. Nebula Research & Development LLC now owns 166,767 shares of the restaurant operator’s stock valued at $1,316,000 after buying an additional 9,892 shares in the last quarter. Institutional investors own 55.91% of the company’s stock.

Arcos Dorados Trading Up 7.2%

The company has a debt-to-equity ratio of 1.46, a current ratio of 1.03 and a quick ratio of 0.95. The company has a market capitalization of $1.82 billion, a price-to-earnings ratio of 8.45, a P/E/G ratio of 3.01 and a beta of 0.47. The business’s 50-day moving average price is $8.46 and its two-hundred day moving average price is $7.99.

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.