Arcos Dorados (NYSE:ARCO) Announces Earnings Results

Arcos Dorados (NYSE:ARCO) announced its quarterly earnings results on Wednesday. The restaurant operator reported $0.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.11 by $0.06, FiscalAI reports. Arcos Dorados had a net margin of 4.53% and a return on equity of 8.12%. The firm had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.21 billion.

Arcos Dorados Stock Down 2.8%

Shares of NYSE:ARCO opened at $8.07 on Wednesday. The company has a current ratio of 1.03, a quick ratio of 0.95 and a debt-to-equity ratio of 1.46. The company has a fifty day simple moving average of $8.46 and a 200 day simple moving average of $7.99. The firm has a market cap of $1.70 billion, a PE ratio of 7.99, a price-to-earnings-growth ratio of 3.01 and a beta of 0.47. Arcos Dorados has a 12-month low of $6.51 and a 12-month high of $9.75.

Arcos Dorados Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 29th. Investors of record on Wednesday, December 23rd will be paid a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Wednesday, December 23rd. Arcos Dorados’s payout ratio is 23.76%.

Institutional Trading of Arcos Dorados

A number of hedge funds and other institutional investors have recently made changes to their positions in ARCO. Lazard Asset Management LLC increased its stake in shares of Arcos Dorados by 35.3% in the third quarter. Lazard Asset Management LLC now owns 20,128,477 shares of the restaurant operator’s stock worth $135,867,000 after buying an additional 5,255,199 shares during the last quarter. SPX Gestao de Recursos Ltda increased its stake in shares of Arcos Dorados by 19.1% in the fourth quarter. SPX Gestao de Recursos Ltda now owns 7,551,676 shares of the restaurant operator’s stock worth $55,429,000 after buying an additional 1,209,055 shares during the last quarter. Renaissance Technologies LLC increased its stake in shares of Arcos Dorados by 312.7% in the fourth quarter. Renaissance Technologies LLC now owns 1,049,734 shares of the restaurant operator’s stock worth $7,705,000 after buying an additional 795,400 shares during the last quarter. Millennium Management LLC increased its stake in shares of Arcos Dorados by 1,097.5% in the third quarter. Millennium Management LLC now owns 646,470 shares of the restaurant operator’s stock worth $4,364,000 after buying an additional 592,484 shares during the last quarter. Finally, Goldman Sachs Group Inc. increased its stake in shares of Arcos Dorados by 83.1% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,127,060 shares of the restaurant operator’s stock worth $8,273,000 after buying an additional 511,468 shares during the last quarter. Institutional investors own 55.91% of the company’s stock.

Wall Street Analyst Weigh In

ARCO has been the subject of a number of recent research reports. Weiss Ratings reiterated a “hold (c)” rating on shares of Arcos Dorados in a research note 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. Santander upgraded shares of Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th. Finally, Wall Street Zen lowered shares of Arcos Dorados from a “buy” rating to a “hold” rating in a research note on Saturday, April 25th. 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 MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $8.70.

About Arcos Dorados

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.