Arcos Dorados (NYSE:ARCO) Issues Earnings Results

Arcos Dorados (NYSE:ARCO) released its quarterly earnings data 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 company had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.21 billion. During the same quarter in the previous year, the company earned $0.07 earnings per share. The firm’s revenue for the quarter was up 12.9% on a year-over-year basis.

Arcos Dorados Stock Performance

Shares of ARCO stock opened at $8.07 on Wednesday. The firm’s 50 day moving average price is $8.46 and its 200-day moving average price is $7.99. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.95 and a current ratio of 1.03. Arcos Dorados has a one year low of $6.51 and a one year high of $9.75. The firm has a market cap of $1.70 billion, a P/E ratio of 7.99, a P/E/G ratio of 3.01 and a beta of 0.47.

Arcos Dorados Dividend Announcement

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

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Arcos Dorados in a report on Monday, April 27th. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Arcos Dorados in a report 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 raised shares of Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $8.70.

Hedge Funds Weigh In On Arcos Dorados

Several large investors have recently made changes to their positions in the stock. Lazard Asset Management LLC lifted its holdings in shares of Arcos Dorados by 6.7% in the 4th quarter. Lazard Asset Management LLC now owns 21,471,672 shares of the restaurant operator’s stock worth $157,602,000 after acquiring an additional 1,343,195 shares during the last quarter. SPX Gestao de Recursos Ltda increased its position in shares of Arcos Dorados by 19.1% in the 4th quarter. SPX Gestao de Recursos Ltda now owns 7,551,676 shares of the restaurant operator’s stock valued at $55,429,000 after purchasing an additional 1,209,055 shares during the last quarter. Moerus Capital Management LLC grew its position in shares of Arcos Dorados by 6.8% in the 4th quarter. Moerus Capital Management LLC now owns 3,556,906 shares of the restaurant operator’s stock valued at $26,108,000 after buying an additional 226,912 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Arcos Dorados by 3.1% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,508,707 shares of the restaurant operator’s stock valued at $27,684,000 after buying an additional 105,972 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its position in shares of Arcos Dorados by 83.1% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,127,060 shares of the restaurant operator’s stock valued at $8,273,000 after buying an additional 511,468 shares during the last quarter. 55.91% of the stock is currently owned by institutional investors and hedge funds.

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.