Arcos Dorados Holdings Inc. $ARCO Position Boosted by Franklin Resources Inc.

Franklin Resources Inc. lifted its holdings in Arcos Dorados Holdings Inc. (NYSE:ARCO) by 50.9% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 3,907,929 shares of the restaurant operator’s stock after purchasing an additional 1,319,031 shares during the period. Franklin Resources Inc.’s holdings in Arcos Dorados were worth $30,834,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in ARCO. Alta Fox Capital Management LLC bought a new stake in Arcos Dorados during the first quarter worth approximately $9,033,000. Fourth Sail Capital LP bought a new position in shares of Arcos Dorados in the first quarter valued at $26,746,000. Envestnet Asset Management Inc. lifted its position in shares of Arcos Dorados by 79.3% during the 2nd quarter. Envestnet Asset Management Inc. now owns 433,237 shares of the restaurant operator’s stock valued at $3,418,000 after acquiring an additional 191,560 shares during the last quarter. Perpetual Ltd boosted its stake in shares of Arcos Dorados by 4.0% during the 2nd quarter. Perpetual Ltd now owns 1,744,914 shares of the restaurant operator’s stock worth $13,767,000 after acquiring an additional 66,900 shares in the last quarter. Finally, INCA Investments LLC boosted its stake in shares of Arcos Dorados by 7.5% during the 2nd quarter. INCA Investments LLC now owns 1,398,553 shares of the restaurant operator’s stock worth $11,035,000 after acquiring an additional 97,298 shares in the last quarter. 55.91% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ARCO. JPMorgan Chase & Co. cut their target price on Arcos Dorados from $8.80 to $8.70 and set a “neutral” rating on the stock in a research report on Tuesday, November 11th. Wall Street Zen upgraded Arcos Dorados from a “hold” rating to a “buy” rating in a research report on Saturday, November 15th. Weiss Ratings cut Arcos Dorados from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, October 8th. Finally, Zacks Research upgraded Arcos Dorados from a “strong sell” rating to a “hold” rating in a report on Friday, November 21st. Two research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus target price of $8.70.

Arcos Dorados Price Performance

ARCO opened at $7.30 on Thursday. The stock has a fifty day moving average price of $7.06 and a 200 day moving average price of $7.22. The company has a current ratio of 0.80, a quick ratio of 0.73 and a debt-to-equity ratio of 1.62. Arcos Dorados Holdings Inc. has a 1 year low of $6.51 and a 1 year high of $8.52. The stock has a market cap of $1.54 billion, a price-to-earnings ratio of 11.58, a PEG ratio of 3.46 and a beta of 0.60.

Arcos Dorados (NYSE:ARCO) last posted its quarterly earnings results on Wednesday, November 12th. The restaurant operator reported $0.12 earnings per share for the quarter, topping analysts’ consensus estimates of $0.10 by $0.02. The company had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.28 billion. Arcos Dorados had a return on equity of 24.54% and a net margin of 2.89%.The business’s quarterly revenue was up 5.2% on a year-over-year basis. During the same period last year, the business earned $0.17 EPS. Analysts forecast that Arcos Dorados Holdings Inc. will post 0.63 EPS for the current fiscal year.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc operates as a franchisee of McDonald’s restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald’s restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S.