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

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) have been given an average rating of “Hold” by the five analysts that are currently covering the stock, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $8.70.

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

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Optimize Financial Inc raised its holdings in Arcos Dorados by 1.5% during the fourth quarter. Optimize Financial Inc now owns 86,291 shares of the restaurant operator’s stock worth $633,000 after purchasing an additional 1,240 shares in the last quarter. DGS Capital Management LLC raised its holdings in Arcos Dorados by 10.6% during the fourth quarter. DGS Capital Management LLC now owns 13,481 shares of the restaurant operator’s stock worth $99,000 after purchasing an additional 1,290 shares in the last quarter. Mraz Amerine & Associates Inc. raised its holdings in Arcos Dorados by 11.3% during the fourth quarter. Mraz Amerine & Associates Inc. now owns 19,665 shares of the restaurant operator’s stock worth $144,000 after purchasing an additional 2,000 shares in the last quarter. Moors & Cabot Inc. raised its holdings in Arcos Dorados by 4.3% during the fourth quarter. Moors & Cabot Inc. now owns 49,409 shares of the restaurant operator’s stock worth $363,000 after purchasing an additional 2,023 shares in the last quarter. Finally, BNP Paribas Financial Markets raised its holdings in Arcos Dorados by 0.3% during the third quarter. BNP Paribas Financial Markets now owns 918,063 shares of the restaurant operator’s stock worth $6,197,000 after purchasing an additional 2,312 shares in the last quarter. Hedge funds and other institutional investors own 55.91% of the company’s stock.

Arcos Dorados Trading Down 0.2%

NYSE ARCO opened at $8.19 on Monday. Arcos Dorados has a one year low of $6.51 and a one year high of $9.75. The firm has a 50 day simple moving average of $8.67 and a 200-day simple moving average of $8.13. The company has a debt-to-equity ratio of 1.25, a quick ratio of 0.73 and a current ratio of 0.80. The firm has a market cap of $1.72 billion, a price-to-earnings ratio of 7.37 and a beta of 0.46.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings results on Wednesday, May 20th. The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.06. Arcos Dorados had a net margin of 4.86% and a return on equity of 10.47%. The company had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.21 billion. During the same quarter in the previous year, the firm earned $0.07 earnings per share. The firm’s quarterly revenue was up 12.9% on a year-over-year basis. Equities research analysts anticipate that Arcos Dorados will post 0.73 EPS for the current fiscal year.

Arcos Dorados Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 29th. Investors of record on Wednesday, December 23rd will be paid a $0.07 dividend. The ex-dividend date is Wednesday, December 23rd. This represents a $0.28 dividend on an annualized basis and a yield of 3.4%. Arcos Dorados’s payout ratio is currently 16.22%.

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.