Arcos Dorados (NYSE:ARCO) Posts Earnings Results, Beats Expectations By $0.06 EPS

Arcos Dorados (NYSE:ARCO) released its earnings results on Wednesday. The restaurant operator reported $0.17 earnings per share for the quarter, beating the consensus estimate 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 during the quarter, compared to analyst estimates of $1.21 billion.

Arcos Dorados Stock Performance

Shares of ARCO opened at $8.07 on Wednesday. Arcos Dorados has a 1 year low of $6.51 and a 1 year high of $9.75. The company has a market cap of $1.70 billion, a price-to-earnings ratio of 7.99, a price-to-earnings-growth ratio of 3.01 and a beta of 0.47. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.95 and a current ratio of 1.03. The firm has a fifty day moving average of $8.46 and a 200-day moving average of $7.99.

Arcos Dorados Announces Dividend

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

Analyst Upgrades and Downgrades

Several research firms have weighed in on ARCO. Santander upgraded shares of Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th. Wall Street Zen lowered shares of Arcos Dorados from a “buy” rating to a “hold” rating in a research note on Saturday, April 25th. Weiss Ratings reiterated a “hold (c)” rating on shares of Arcos Dorados in a research note on Monday, April 27th. Finally, The Goldman Sachs Group reiterated a “buy” rating on shares of Arcos Dorados in a research note on Wednesday, April 8th. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $8.70.

Hedge Funds Weigh In On Arcos Dorados

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

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.