Arcos Dorados (NYSE:ARCO) Announces Earnings Results

Key Points

• Arcos Dorados reported earnings of $0.11 per share for the quarter, exceeding analysts' expectations of $0.05.
• The company's revenue reached $1.14 billion, which was below the consensus estimate of $1.22 billion, but showed a year-over-year increase of 2.8%.
• JPMorgan cut Arcos Dorados' rating from "overweight" to "neutral", lowering its price target from $10.50 to $8.80.

Arcos Dorados (NYSE:ARCO - Get Free Report) released its earnings results on Wednesday. The restaurant operator reported $0.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.05 by $0.06, Zacks reports. Arcos Dorados had a return on equity of 25.36% and a net margin of 2.89%. The business had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period last year, the business posted $0.13 earnings per share. The business's revenue for the quarter was up 2.8% on a year-over-year basis.

Arcos Dorados Price Performance

NYSE:ARCO traded down $0.13 during trading hours on Thursday, hitting $7.50. 2,032,143 shares of the company's stock traded hands, compared to its average volume of 1,408,801. The firm has a market cap of $1.58 billion, a P/E ratio of 11.91 and a beta of 0.59. Arcos Dorados has a 52 week low of $6.51 and a 52 week high of $10.27. The business's fifty day simple moving average is $7.38 and its two-hundred day simple moving average is $7.63. The company has a quick ratio of 0.81, a current ratio of 0.86 and a debt-to-equity ratio of 1.80.

Arcos Dorados Cuts Dividend

The firm also recently disclosed a dividend, which was paid on Friday, June 27th. Investors of record on Wednesday, June 25th were paid a dividend of $0.06 per share. The ex-dividend date of this dividend was Tuesday, June 24th. This represents a yield of 313.0%. Arcos Dorados's dividend payout ratio (DPR) is currently 38.10%.

Analysts Set New Price Targets

Separately, JPMorgan Chase & Co. cut Arcos Dorados from an "overweight" rating to a "neutral" rating and reduced their price target for the company from $10.50 to $8.80 in a research report on Wednesday, July 2nd.

Institutional Investors Weigh In On Arcos Dorados

Several large investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Arcos Dorados by 3.1% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,508,707 shares of the restaurant operator's stock worth $27,684,000 after purchasing an additional 105,972 shares during the last quarter. PDT Partners LLC lifted its stake in shares of Arcos Dorados by 43.8% in the 2nd quarter. PDT Partners LLC now owns 564,473 shares of the restaurant operator's stock valued at $4,454,000 after acquiring an additional 171,800 shares during the last quarter. Royal Bank of Canada lifted its stake in shares of Arcos Dorados by 23.1% in the 1st quarter. Royal Bank of Canada now owns 538,925 shares of the restaurant operator's stock valued at $4,344,000 after acquiring an additional 101,301 shares during the last quarter. Jane Street Group LLC lifted its stake in shares of Arcos Dorados by 58.3% in the 1st quarter. Jane Street Group LLC now owns 309,785 shares of the restaurant operator's stock valued at $2,497,000 after acquiring an additional 114,034 shares during the last quarter. Finally, Nebula Research & Development LLC lifted its stake in shares of Arcos Dorados by 6.3% in the 2nd quarter. Nebula Research & Development LLC now owns 166,767 shares of the restaurant operator's stock valued at $1,316,000 after acquiring an additional 9,892 shares during the last quarter. Institutional investors own 55.91% of the company's stock.

About Arcos Dorados

Arcos Dorados Holdings Inc operates as a franchisee of McDonald's restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S.

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