Arcos Dorados Holdings Inc. (NYSE:ARCO) Short Interest Update

Key Points

• Short interest fell by 19.7% in March to 3,062,007 shares, representing about 1.5% of the float and a days-to-cover ratio of 2.7.
• Arcos Dorados missed quarterly EPS expectations, reporting $0.12 vs. the consensus $0.20, while revenue rose 10.7% year-over-year to $1.27 billion.
• The company declared a quarterly dividend of $0.07 (annualized yield ~3.2%) and the stock trades near analysts' average target of $8.70 with a consensus rating of Hold and a P/E of about 8.6.

Arcos Dorados Holdings Inc. (NYSE:ARCO - Get Free Report) was the target of a large decrease in short interest in March. As of March 31st, there was short interest totaling 3,062,007 shares, a decrease of 19.7% from the March 15th total of 3,813,584 shares. Based on an average trading volume of 1,153,742 shares, the days-to-cover ratio is currently 2.7 days. Currently, 1.5% of the company's stock are short sold.

Arcos Dorados Stock Performance

Arcos Dorados stock traded up $0.11 during midday trading on Thursday, reaching $8.67. 992,487 shares of the company traded hands, compared to its average volume of 913,802. Arcos Dorados has a 12 month low of $6.51 and a 12 month high of $8.98. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.03 and a quick ratio of 0.95. The business has a 50 day moving average of $8.32 and a two-hundred day moving average of $7.70. The firm has a market capitalization of $1.83 billion, a price-to-earnings ratio of 8.58, a price-to-earnings-growth ratio of 3.07 and a beta of 0.48.

Arcos Dorados (NYSE:ARCO - Get Free Report) last posted its earnings results on Thursday, March 19th. The restaurant operator reported $0.12 EPS for the quarter, missing analysts' consensus estimates of $0.20 by ($0.08). The company had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.26 billion. Arcos Dorados had a return on equity of 8.12% and a net margin of 4.53%.The company's revenue for the quarter was up 10.7% on a year-over-year basis. During the same period last year, the firm posted $0.28 EPS. As a group, research analysts predict that Arcos Dorados will post 0.63 earnings per share for the current year.

Arcos Dorados Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 29th. Investors of record on Wednesday, December 23rd will be given 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 23.76%.

Wall Street Analysts Forecast Growth

ARCO has been the subject of a number of research analyst reports. The Goldman Sachs Group reissued a "buy" rating on shares of Arcos Dorados in a report on Wednesday, April 8th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Arcos Dorados in a research report on Monday, December 29th. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $8.70.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Global Retirement Partners LLC increased its position in shares of 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 valued at $42,000 after purchasing an additional 5,717 shares during the last quarter. Quarry LP bought a new stake in Arcos Dorados during the third quarter valued at approximately $45,000. Aquatic Capital Management LLC bought a new stake in Arcos Dorados during the third quarter valued at approximately $53,000. Tudor Investment Corp ET AL purchased a new stake in Arcos Dorados during the third quarter valued at approximately $73,000. Finally, Tower Bridge Advisors purchased a new stake in Arcos Dorados during the third quarter valued at approximately $75,000. 55.91% of the stock is owned by hedge funds and other institutional investors.

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.

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