Brokerages Set Arcos Dorados Holdings Inc. (NYSE:ARCO) Price Target at $8.70

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) have earned a consensus rating of “Hold” from the five ratings firms that are currently covering the company, MarketBeat.com reports. Three equities research analysts have rated the stock with a hold recommendation and two have assigned a buy recommendation to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $8.70.

A number of equities research analysts have recently weighed in on ARCO shares. Wall Street Zen lowered shares of Arcos Dorados from a “buy” rating to a “hold” rating in a report on Saturday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Arcos Dorados in a research report on Monday, December 29th. The Goldman Sachs Group reiterated a “buy” rating on shares of Arcos Dorados in a research note on Wednesday, April 8th. Finally, Santander upgraded shares of Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th.

Institutional Investors Weigh In On Arcos Dorados

Several hedge funds and other institutional investors have recently bought and sold shares of ARCO. Royal Bank of Canada raised its stake in Arcos Dorados by 23.1% during the 1st 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 in the last quarter. Jane Street Group LLC raised its stake in 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 acquiring an additional 114,034 shares in the last quarter. Jump Financial LLC acquired a new stake in Arcos Dorados during the 2nd quarter worth $1,315,000. WINTON GROUP Ltd raised its stake in Arcos Dorados by 213.3% during the 2nd quarter. WINTON GROUP Ltd now owns 50,077 shares of the restaurant operator’s stock worth $395,000 after acquiring an additional 34,094 shares in the last quarter. Finally, Nebula Research & Development LLC raised its stake in Arcos Dorados by 6.3% during the 2nd quarter. Nebula Research & Development LLC now owns 166,767 shares of the restaurant operator’s stock worth $1,316,000 after acquiring an additional 9,892 shares in the last quarter. 55.91% of the stock is currently owned by institutional investors and hedge funds.

Arcos Dorados Price Performance

Shares of ARCO opened at $9.22 on Friday. Arcos Dorados has a twelve month low of $6.51 and a twelve month high of $9.75. The firm’s fifty day simple moving average is $8.43 and its 200-day simple moving average is $7.82. The firm has a market capitalization of $1.94 billion, a price-to-earnings ratio of 9.13, a PEG ratio of 3.32 and a beta of 0.48. The company has a current ratio of 1.03, a quick ratio of 0.95 and a debt-to-equity ratio of 1.46.

Arcos Dorados (NYSE:ARCO) last announced its quarterly earnings data on Thursday, March 19th. The restaurant operator reported $0.12 earnings per share for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.08). Arcos Dorados had a net margin of 4.53% and a return on equity of 8.12%. The firm had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.26 billion. During the same quarter in the previous year, the business posted $0.28 earnings per share. Arcos Dorados’s revenue for the quarter was up 10.7% compared to the same quarter last year. Equities analysts forecast that Arcos Dorados will post 0.69 EPS for the current fiscal year.

Arcos Dorados Announces Dividend

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 dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 3.0%. The ex-dividend date is Wednesday, December 23rd. Arcos Dorados’s dividend payout ratio (DPR) is currently 23.76%.

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.