Arcos Dorados Holdings Inc. (NYSE:ARCO) Given Average Recommendation of “Hold” by Analysts

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) have earned an average rating of “Hold” from the five research firms that are presently covering the company, MarketBeat.com reports. Three analysts have rated the stock with a hold recommendation and two have given a buy recommendation to the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $8.70.

ARCO has been the topic of several recent research reports. Santander raised Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th. The Goldman Sachs Group reissued a “buy” rating on shares of Arcos Dorados in a research note on Wednesday, April 8th. Weiss Ratings reissued a “hold (c)” rating on shares of Arcos Dorados in a research note on Monday, April 27th. Finally, Wall Street Zen cut Arcos Dorados from a “buy” rating to a “hold” rating in a research note on Saturday, April 25th.

Institutional Investors Weigh In On Arcos Dorados

Institutional investors have recently modified their holdings of the stock. Global Retirement Partners LLC grew its stake in shares of Arcos Dorados by 9,074.6% in the fourth quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator’s stock worth $42,000 after acquiring an additional 5,717 shares during the last quarter. Quarry LP purchased a new stake in shares of Arcos Dorados in the third quarter worth $45,000. Aquatic Capital Management LLC purchased a new stake in shares of Arcos Dorados in the third quarter worth $53,000. Tudor Investment Corp ET AL purchased a new stake in shares of Arcos Dorados in the third quarter worth $73,000. Finally, Tower Bridge Advisors purchased a new stake in shares of Arcos Dorados in the third quarter worth $75,000. 55.91% of the stock is owned by hedge funds and other institutional investors.

Arcos Dorados Price Performance

Shares of ARCO stock opened at $8.53 on Thursday. The stock has a market cap of $1.80 billion, a price-to-earnings ratio of 8.44, a PEG ratio of 3.13 and a beta of 0.47. The business’s fifty day moving average is $8.46 and its 200 day moving average is $7.97. Arcos Dorados has a twelve month low of $6.51 and a twelve month high of $9.75. The company has a quick ratio of 0.95, a current ratio of 1.03 and a debt-to-equity ratio of 1.46.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings results on Thursday, March 19th. The restaurant operator reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.20 by ($0.08). The firm had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.26 billion. Arcos Dorados had a return on equity of 8.12% and a net margin of 4.53%.Arcos Dorados’s revenue for the quarter was up 10.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.28 earnings per share. Research analysts expect that Arcos Dorados will post 0.68 EPS for the current fiscal year.

Arcos Dorados Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 29th. Stockholders of record on Wednesday, December 23rd will be paid a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date of this dividend is Wednesday, December 23rd. Arcos Dorados’s dividend payout ratio is currently 23.76%.

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.