Diamond Hill Capital Management Inc. Grows Holdings in Arcos Dorados Holdings Inc. (NYSE:ARCO)

Diamond Hill Capital Management Inc. increased its position in shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) by 73.5% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 184,039 shares of the restaurant operator’s stock after buying an additional 77,958 shares during the period. Diamond Hill Capital Management Inc.’s holdings in Arcos Dorados were worth $1,340,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in ARCO. Emeth Value Capital LLC purchased a new stake in Arcos Dorados during the 4th quarter worth $11,190,000. Franklin Resources Inc. bought a new stake in shares of Arcos Dorados in the 3rd quarter worth about $12,101,000. Managed Asset Portfolios LLC bought a new stake in shares of Arcos Dorados in the 3rd quarter worth about $7,389,000. Private Management Group Inc. increased its position in shares of Arcos Dorados by 34.7% in the 4th quarter. Private Management Group Inc. now owns 3,167,857 shares of the restaurant operator’s stock worth $23,062,000 after purchasing an additional 815,198 shares during the last quarter. Finally, TimesSquare Capital Management LLC increased its position in shares of Arcos Dorados by 31.6% in the 4th quarter. TimesSquare Capital Management LLC now owns 1,472,490 shares of the restaurant operator’s stock worth $10,720,000 after purchasing an additional 353,700 shares during the last quarter. Hedge funds and other institutional investors own 55.91% of the company’s stock.

Arcos Dorados Price Performance

ARCO opened at $8.25 on Friday. The company has a 50-day moving average of $7.80 and a 200-day moving average of $8.28. The company has a market capitalization of $1.74 billion, a P/E ratio of 11.78 and a beta of 1.09. Arcos Dorados Holdings Inc. has a 1-year low of $7.02 and a 1-year high of $11.79. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.57 and a current ratio of 0.63.

Arcos Dorados (NYSE:ARCO) last released its earnings results on Wednesday, March 12th. The restaurant operator reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.06. The company had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.15 billion. Arcos Dorados had a net margin of 3.25% and a return on equity of 29.74%. Equities analysts expect that Arcos Dorados Holdings Inc. will post 0.63 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 26th. Stockholders of record on Monday, December 22nd will be issued a $0.06 dividend. This represents a $0.24 annualized dividend and a dividend yield of 2.91%. The ex-dividend date is Monday, December 22nd. Arcos Dorados’s dividend payout ratio (DPR) is presently 34.29%.

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.