ABS Direct Equity Fund LLC Takes Position in Arcos Dorados Holdings Inc. $ARCO

ABS Direct Equity Fund LLC acquired a new stake in Arcos Dorados Holdings Inc. (NYSE:ARCO) in the first quarter, Holdings Channel.com reports. The fund acquired 109,882 shares of the restaurant operator’s stock, valued at approximately $907,000.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. Global Retirement Partners LLC lifted its holdings in 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 valued at $42,000 after acquiring an additional 5,717 shares during the last quarter. Quarry LP purchased a new stake in Arcos Dorados in the third quarter valued at $45,000. Aquatic Capital Management LLC purchased a new stake in Arcos Dorados in the third quarter valued at $53,000. Tudor Investment Corp ET AL acquired a new position in shares of Arcos Dorados in the 3rd quarter valued at $73,000. Finally, Truist Financial Corp acquired a new position in shares of Arcos Dorados in the 4th quarter valued at $76,000. 55.91% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

ARCO has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. raised Arcos Dorados from a “neutral” rating to an “overweight” rating and raised their price objective for the stock from $9.00 to $10.50 in a research report on Friday, July 17th. Wall Street Zen raised shares of Arcos Dorados from a “hold” rating to a “buy” rating in a research report on Saturday, May 23rd. Santander raised shares of Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th. Weiss Ratings cut shares of Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 29th. Finally, Zacks Research raised shares of Arcos Dorados from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Buy” and a consensus target price of $10.50.

Arcos Dorados Price Performance

ARCO stock opened at $8.22 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 company has a market capitalization of $1.73 billion, a PE ratio of 7.41 and a beta of 0.48. Arcos Dorados Holdings Inc. has a 12-month low of $6.51 and a 12-month high of $9.75. The business’s fifty day moving average price is $8.42 and its 200 day moving average price is $8.37.

Arcos Dorados (NYSE:ARCO) last announced its earnings results on Thursday, May 21st. The restaurant operator reported $0.17 EPS for the quarter, beating analysts’ consensus estimates of $0.11 by $0.06. The company had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.21 billion. Arcos Dorados had a return on equity of 10.47% and a net margin of 4.86%.Arcos Dorados’s revenue for the quarter was up 12.9% on a year-over-year basis. During the same period last year, the business posted $0.07 EPS. On average, sell-side analysts anticipate that Arcos Dorados Holdings Inc. will post 0.76 EPS for the current year.

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.