Arcos Dorados Holdings Inc. (NYSE:ARCO) Given Consensus Rating of "Hold" by Analysts

Key Points

• Shares have an average analyst rating of Hold (three holds, one buy) with a 12‑month target of $8.70; recent notes include Santander raising to outperform and Goldman Sachs reiterating a buy.
• The company reported Q1 EPS of $0.12, missing the $0.20 estimate while revenue rose 10.7% to $1.27 billion, and sell‑side analysts project $0.63 EPS for the fiscal year.
• Arcos Dorados declared a quarterly dividend of $0.07 (annualized yield ~3.1%), the stock trades near $8.98 with a market cap of $1.89B and a P/E of 8.89, and institutional investors own about 55.9% of shares.

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO - Get Free Report) have earned an average rating of "Hold" from the four ratings firms that are presently covering the stock, MarketBeat reports. Three equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $8.70.

ARCO has been the subject of a number of recent analyst reports. Santander raised shares of Arcos Dorados to an "outperform" rating in a research report on Monday. Weiss Ratings reiterated a "hold (c-)" rating on shares of Arcos Dorados in a research note on Monday, December 29th. Finally, The Goldman Sachs Group reiterated a "buy" rating on shares of Arcos Dorados in a research note on Wednesday, April 8th.

Institutional Trading of Arcos Dorados

Several institutional investors and hedge funds have recently bought and sold shares of the company. Optimize Financial Inc grew its holdings in shares of Arcos Dorados by 1.5% during the 4th quarter. Optimize Financial Inc now owns 86,291 shares of the restaurant operator's stock valued at $633,000 after purchasing an additional 1,240 shares during the last quarter. DGS Capital Management LLC grew its holdings in shares of Arcos Dorados by 10.6% during the 4th quarter. DGS Capital Management LLC now owns 13,481 shares of the restaurant operator's stock valued at $99,000 after purchasing an additional 1,290 shares during the last quarter. Bfsg LLC grew its holdings in shares of Arcos Dorados by 8.9% during the 3rd quarter. Bfsg LLC now owns 24,330 shares of the restaurant operator's stock valued at $164,000 after purchasing an additional 1,992 shares during the last quarter. Mraz Amerine & Associates Inc. grew its holdings in shares of Arcos Dorados by 11.3% during the 4th quarter. Mraz Amerine & Associates Inc. now owns 19,665 shares of the restaurant operator's stock valued at $144,000 after purchasing an additional 2,000 shares during the last quarter. Finally, Moors & Cabot Inc. grew its holdings in shares of Arcos Dorados by 4.3% during the 4th quarter. Moors & Cabot Inc. now owns 49,409 shares of the restaurant operator's stock valued at $363,000 after purchasing an additional 2,023 shares during the last quarter. 55.91% of the stock is currently owned by hedge funds and other institutional investors.

Arcos Dorados Trading Up 3.5%

ARCO stock traded up $0.31 during midday trading on Friday, hitting $8.98. The stock had a trading volume of 1,010,703 shares, compared to its average volume of 835,409. The firm has a market cap of $1.89 billion, a P/E ratio of 8.89, a price-to-earnings-growth ratio of 3.21 and a beta of 0.48. The company has a current ratio of 1.03, a quick ratio of 0.95 and a debt-to-equity ratio of 1.46. Arcos Dorados has a 1-year low of $6.51 and a 1-year high of $9.03. The business has a fifty day moving average price of $8.33 and a two-hundred day moving average price of $7.73.

Arcos Dorados (NYSE:ARCO - Get Free Report) last posted 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). Arcos Dorados had a net margin of 4.53% and a return on equity of 8.12%. The company had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.26 billion. During the same period last year, the firm posted $0.28 earnings per share. The company's revenue for the quarter was up 10.7% on a year-over-year basis. On average, sell-side analysts predict that Arcos Dorados will post 0.63 earnings per share for the current fiscal year.

Arcos Dorados Announces Dividend

The firm 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 dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date is Wednesday, December 23rd. Arcos Dorados's dividend payout ratio is presently 23.76%.

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.

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