StockNews.com Lowers Arcos Dorados (NYSE:ARCO) to Hold

StockNews.com lowered shares of Arcos Dorados (NYSE:ARCO) from a buy rating to a hold rating in a report issued on Friday morning.

Arcos Dorados Stock Performance

ARCO opened at $9.94 on Friday. The company has a market capitalization of $2.09 billion, a price-to-earnings ratio of 12.27, a P/E/G ratio of 1.73 and a beta of 1.27. The business’s 50-day moving average price is $10.87 and its two-hundred day moving average price is $11.55. The company has a debt-to-equity ratio of 1.47, a current ratio of 0.66 and a quick ratio of 0.66. Arcos Dorados has a 1 year low of $8.32 and a 1 year high of $13.20.

Arcos Dorados (NYSE:ARCO) last announced its quarterly earnings data on Wednesday, May 15th. The restaurant operator reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.02). The company had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.02 billion. Arcos Dorados had a net margin of 3.90% and a return on equity of 38.57%. Arcos Dorados’s revenue was up 11.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.18 EPS. Equities analysts expect that Arcos Dorados will post 0.88 EPS for the current fiscal year.

Arcos Dorados Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 27th. Investors of record on Monday, December 23rd will be issued a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a yield of 2.41%. The ex-dividend date is Monday, December 23rd. Arcos Dorados’s payout ratio is currently 29.63%.

Hedge Funds Weigh In On Arcos Dorados

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Navellier & Associates Inc. grew its holdings in Arcos Dorados by 11.3% during the fourth quarter. Navellier & Associates Inc. now owns 15,050 shares of the restaurant operator’s stock worth $191,000 after purchasing an additional 1,529 shares during the period. Activest Wealth Management bought a new position in Arcos Dorados during the first quarter worth about $30,000. Lazard Asset Management LLC grew its holdings in Arcos Dorados by 35.4% during the first quarter. Lazard Asset Management LLC now owns 11,557 shares of the restaurant operator’s stock worth $128,000 after purchasing an additional 3,022 shares during the period. DGS Capital Management LLC grew its holdings in Arcos Dorados by 6.5% during the fourth quarter. DGS Capital Management LLC now owns 60,648 shares of the restaurant operator’s stock worth $770,000 after purchasing an additional 3,693 shares during the period. Finally, HBK Sorce Advisory LLC grew its holdings in Arcos Dorados by 29.0% during the fourth quarter. HBK Sorce Advisory LLC now owns 17,672 shares of the restaurant operator’s stock worth $224,000 after purchasing an additional 3,971 shares during the period. Institutional investors own 55.91% of the company’s stock.

About Arcos Dorados

Arcos Dorados Holdings Inc operates as a franchisee of McDonald's restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S.