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

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) have been given a consensus recommendation of “Hold” by the five brokerages that are presently covering the firm, Marketbeat Ratings reports. Three investment analysts have rated the stock with a hold recommendation and two have assigned a buy recommendation to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $8.70.

Several research firms recently issued reports on ARCO. Wall Street Zen raised Arcos Dorados from a “hold” rating to a “buy” rating in a research report on Saturday, May 23rd. The Goldman Sachs Group reissued a “buy” rating on shares of Arcos Dorados in a research report on Wednesday, April 8th. Weiss Ratings upgraded Arcos Dorados from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, May 21st. Finally, Santander upgraded Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th.

Arcos Dorados Stock Performance

ARCO stock opened at $8.83 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. The firm has a market cap of $1.86 billion, a P/E ratio of 7.95 and a beta of 0.46. Arcos Dorados has a 12-month low of $6.51 and a 12-month high of $9.75. The stock’s 50 day simple moving average is $8.70 and its 200 day simple moving average is $8.17.

Arcos Dorados (NYSE:ARCO) last posted its quarterly earnings results on Wednesday, May 20th. The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.06. The business had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.21 billion. Arcos Dorados had a return on equity of 10.47% and a net margin of 4.86%.The business’s revenue was up 12.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.07 EPS. As a group, equities research analysts predict that Arcos Dorados will post 0.73 EPS for the current year.

Arcos Dorados Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 29th. Investors of record on Wednesday, December 23rd will be paid a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date is Wednesday, December 23rd. Arcos Dorados’s dividend payout ratio is presently 16.22%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Global Retirement Partners LLC grew its stake in Arcos Dorados by 9,074.6% during the 4th quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator’s stock worth $42,000 after buying an additional 5,717 shares during the last quarter. Quarry LP bought a new position in Arcos Dorados during the 3rd quarter worth $45,000. Aquatic Capital Management LLC bought a new position in Arcos Dorados during the 3rd quarter worth $53,000. Truist Financial Corp bought a new position in Arcos Dorados during the 4th quarter worth $76,000. Finally, Tudor Investment Corp ET AL bought a new position in Arcos Dorados during the 3rd quarter worth $73,000. 55.91% of the stock is currently owned by institutional investors.

Arcos Dorados Company Profile

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.