Arcos Dorados Holdings Inc. (NYSE:ARCO) Sees Significant Decline in Short Interest

Arcos Dorados Holdings Inc. (NYSE:ARCO) was the recipient of a significant decline in short interest in March. As of March 31st, there was short interest totaling 3,062,007 shares, a decline of 19.7% from the March 15th total of 3,813,584 shares. Currently, 1.5% of the shares of the stock are short sold. Based on an average trading volume of 1,153,742 shares, the days-to-cover ratio is currently 2.7 days.

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. Weiss Ratings reiterated a “hold (c-)” rating on shares of Arcos Dorados in a research note on Monday, December 29th. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Arcos Dorados in a research report on Wednesday, April 8th. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $8.70.

Hedge Funds Weigh In On Arcos Dorados

Hedge funds have recently modified their holdings of the stock. Global Retirement Partners LLC grew its stake in shares of Arcos Dorados by 9,074.6% during the fourth quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator’s stock worth $42,000 after purchasing an additional 5,717 shares during the period. Quarry LP acquired a new stake in Arcos Dorados in the third quarter valued at approximately $45,000. Aquatic Capital Management LLC acquired a new position in shares of Arcos Dorados in the 3rd quarter worth approximately $53,000. Tudor Investment Corp ET AL bought a new stake in Arcos Dorados in the 3rd quarter valued at about $73,000. Finally, Tower Bridge Advisors bought a new position in shares of Arcos Dorados during the 3rd quarter worth approximately $75,000. 55.91% of the stock is owned by institutional investors and hedge funds.

Arcos Dorados Trading Up 3.5%

NYSE:ARCO traded up $0.31 on Friday, hitting $8.98. The stock had a trading volume of 1,010,703 shares, compared to its average volume of 903,955. Arcos Dorados has a 1-year low of $6.51 and a 1-year high of $9.03. The company has a fifty day moving average price of $8.33 and a two-hundred day moving average price of $7.72. The stock has a market cap of $1.89 billion, a price-to-earnings ratio of 8.89, a PEG ratio of 3.11 and a beta of 0.48. The company has a quick ratio of 0.95, a current ratio of 1.03 and a debt-to-equity ratio of 1.46.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings data on Thursday, March 19th. The restaurant operator reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.20 by ($0.08). Arcos Dorados had a net margin of 4.53% and a return on equity of 8.12%. The company had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same quarter in the prior year, the company earned $0.28 EPS. The business’s revenue was up 10.7% on a year-over-year basis. Equities research analysts expect that Arcos Dorados will post 0.63 earnings per share for the current fiscal year.

Arcos Dorados Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 29th. Stockholders of record on Wednesday, December 23rd will be given a $0.07 dividend. This represents a $0.28 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Wednesday, December 23rd. Arcos Dorados’s dividend payout ratio (DPR) is 23.76%.

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.