Arcos Dorados Holdings Inc. (NYSE:ARCO) Receives Consensus Rating of “Hold” from Analysts

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) have received a consensus rating of “Hold” from the five brokerages that are presently covering the company, MarketBeat reports. Three analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $8.70.

A number of analysts have weighed in on the stock. The Goldman Sachs Group reissued a “buy” rating on shares of Arcos Dorados in a report on Wednesday, April 8th. Weiss Ratings raised shares of Arcos Dorados from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, May 21st. Santander raised shares of Arcos Dorados to an “outperform” rating in a report on Monday, April 20th. Finally, Wall Street Zen raised shares of Arcos Dorados from a “hold” rating to a “buy” rating in a report on Saturday, May 23rd.

Arcos Dorados Stock Down 0.2%

ARCO stock opened at $8.19 on Monday. The company has a current ratio of 0.80, a quick ratio of 0.73 and a debt-to-equity ratio of 1.25. Arcos Dorados has a twelve month low of $6.51 and a twelve month high of $9.75. The company’s 50 day moving average is $8.67 and its two-hundred day moving average is $8.13. The stock has a market cap of $1.72 billion, a P/E ratio of 7.37 and a beta of 0.46.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings data on Wednesday, May 20th. The restaurant operator reported $0.17 earnings per share for the quarter, topping analysts’ consensus estimates of $0.11 by $0.06. Arcos Dorados had a net margin of 4.86% and a return on equity of 10.47%. The company had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.21 billion. During the same quarter last 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. Research analysts expect that Arcos Dorados will post 0.73 earnings per share for the current fiscal year.

Arcos Dorados Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 29th. Stockholders of record on Wednesday, December 23rd will be issued a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date of this dividend is Wednesday, December 23rd. Arcos Dorados’s payout ratio is presently 16.22%.

Hedge Funds Weigh In On Arcos Dorados

A number of institutional investors have recently modified their holdings of ARCO. Royal Bank of Canada increased its holdings in shares of Arcos Dorados by 23.1% in the 1st quarter. Royal Bank of Canada now owns 538,925 shares of the restaurant operator’s stock valued at $4,344,000 after acquiring an additional 101,301 shares during the period. Jane Street Group LLC increased its holdings in shares of Arcos Dorados by 58.3% in the 1st quarter. Jane Street Group LLC now owns 309,785 shares of the restaurant operator’s stock valued at $2,497,000 after acquiring an additional 114,034 shares during the period. Jump Financial LLC acquired a new position in shares of Arcos Dorados in the 2nd quarter valued at $1,315,000. WINTON GROUP Ltd increased its holdings in shares of Arcos Dorados by 213.3% in the 2nd quarter. WINTON GROUP Ltd now owns 50,077 shares of the restaurant operator’s stock valued at $395,000 after acquiring an additional 34,094 shares during the period. Finally, Nebula Research & Development LLC increased its holdings in shares of Arcos Dorados by 6.3% in the 2nd quarter. Nebula Research & Development LLC now owns 166,767 shares of the restaurant operator’s stock valued at $1,316,000 after acquiring an additional 9,892 shares during the period. 55.91% of the stock is owned by institutional investors and hedge funds.

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.