Arcos Dorados Holdings Inc. (NYSE:ARCO) Receives Average Recommendation of “Hold” from Brokerages

Arcos Dorados Holdings Inc. (NYSE:ARCO) has been assigned a consensus rating of “Hold” from the five analysts that are covering the firm, Marketbeat Ratings reports. Three analysts have rated the stock with a hold recommendation and two have assigned a buy recommendation to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $8.70.

Several equities research analysts recently commented on the company. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Arcos Dorados in a research report on Wednesday, April 8th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Arcos Dorados in a research report on Monday, April 27th. Santander raised Arcos Dorados to an “outperform” rating in a research report on Monday, April 20th. Finally, Wall Street Zen downgraded Arcos Dorados from a “buy” rating to a “hold” rating in a report on Saturday, April 25th.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Optimize Financial Inc lifted its holdings in Arcos Dorados by 1.5% in the fourth quarter. Optimize Financial Inc now owns 86,291 shares of the restaurant operator’s stock valued at $633,000 after acquiring an additional 1,240 shares during the period. DGS Capital Management LLC lifted its holdings in Arcos Dorados by 10.6% in the fourth quarter. DGS Capital Management LLC now owns 13,481 shares of the restaurant operator’s stock valued at $99,000 after acquiring an additional 1,290 shares during the period. Bfsg LLC lifted its holdings in Arcos Dorados by 8.9% in the third quarter. Bfsg LLC now owns 24,330 shares of the restaurant operator’s stock valued at $164,000 after acquiring an additional 1,992 shares during the period. Mraz Amerine & Associates Inc. lifted its holdings in Arcos Dorados by 11.3% in the fourth quarter. Mraz Amerine & Associates Inc. now owns 19,665 shares of the restaurant operator’s stock valued at $144,000 after acquiring an additional 2,000 shares during the period. Finally, Moors & Cabot Inc. lifted its holdings in Arcos Dorados by 4.3% in the fourth quarter. Moors & Cabot Inc. now owns 49,409 shares of the restaurant operator’s stock valued at $363,000 after acquiring an additional 2,023 shares during the period. Institutional investors own 55.91% of the company’s stock.

Arcos Dorados Trading Down 1.3%

Arcos Dorados stock opened at $8.53 on Thursday. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.03 and a quick ratio of 0.95. Arcos Dorados has a one year low of $6.51 and a one year high of $9.75. The stock has a market capitalization of $1.80 billion, a PE ratio of 8.44, a price-to-earnings-growth 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 (NYSE:ARCO) last released its quarterly earnings data on Thursday, March 19th. The restaurant operator reported $0.12 EPS for the quarter, missing the consensus estimate of $0.20 by ($0.08). Arcos Dorados had a net margin of 4.53% and a return on equity of 8.12%. The business had revenue of $1.27 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same period last year, the business earned $0.28 earnings per share. The company’s quarterly revenue was up 10.7% on a year-over-year basis. On average, sell-side analysts predict that Arcos Dorados will post 0.68 EPS for the current year.

Arcos Dorados Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 29th. Shareholders of record on Wednesday, December 23rd will be issued a $0.07 dividend. The ex-dividend date of this dividend is Wednesday, December 23rd. This represents a $0.28 dividend on an annualized basis and a yield of 3.3%. 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.