Private Management Group Inc. Acquires 38,056 Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO)

Key Points

• Private Management Group Inc. increased its stake in Arcos Dorados Holdings Inc. by 1.2%, bringing their total ownership to 1.52% valued at approximately $25.8 million.
• Despite a year-over-year revenue decline of 0.4%, Arcos Dorados reported a quarterly revenue of $1.08 billion, exceeding analysts' expectations of $1.02 billion.
• JPMorgan Chase & Co. downgraded Arcos Dorados from an "overweight" to a "neutral" rating and lowered its price target from $10.50 to $8.80.

Private Management Group Inc. grew its holdings in Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) by 1.2% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 3,205,913 shares of the restaurant operator's stock after acquiring an additional 38,056 shares during the quarter. Private Management Group Inc. owned 1.52% of Arcos Dorados worth $25,840,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Harbour Capital Advisors LLC purchased a new stake in Arcos Dorados in the 1st quarter valued at $736,000. Jane Street Group LLC grew its stake in shares of Arcos Dorados by 156.6% in the 4th quarter. Jane Street Group LLC now owns 195,751 shares of the restaurant operator's stock valued at $1,425,000 after purchasing an additional 119,477 shares during the last quarter. Franklin Resources Inc. lifted its holdings in shares of Arcos Dorados by 88.1% in the 4th quarter. Franklin Resources Inc. now owns 2,611,023 shares of the restaurant operator's stock valued at $19,008,000 after buying an additional 1,223,260 shares during the period. Dodge & Cox acquired a new position in Arcos Dorados during the fourth quarter worth $772,000. Finally, Renaissance Technologies LLC raised its holdings in shares of Arcos Dorados by 730.4% in the fourth quarter. Renaissance Technologies LLC now owns 422,934 shares of the restaurant operator's stock worth $3,079,000 after acquiring an additional 372,000 shares during the last quarter. Institutional investors and hedge funds own 55.91% of the company's stock.

Analyst Upgrades and Downgrades

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

Arcos Dorados Stock Up 0.3%

NYSE ARCO traded up $0.03 on Friday, hitting $7.21. 1,181,906 shares of the stock traded hands, compared to its average volume of 1,328,719. The company has a market capitalization of $1.52 billion, a P/E ratio of 11.08 and a beta of 0.63. The stock has a 50-day moving average of $7.52 and a 200 day moving average of $7.68. Arcos Dorados Holdings Inc. has a twelve month low of $6.66 and a twelve month high of $10.55. The company has a current ratio of 0.86, a quick ratio of 0.81 and a debt-to-equity ratio of 1.80.

Arcos Dorados (NYSE:ARCO - Get Free Report) last announced its quarterly earnings data on Wednesday, May 14th. The restaurant operator reported $0.07 EPS for the quarter, missing analysts' consensus estimates of $0.13 by ($0.06). The company had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.02 billion. Arcos Dorados had a net margin of 3.00% and a return on equity of 26.70%. Arcos Dorados's revenue was down .4% on a year-over-year basis. During the same quarter last year, the company posted $0.14 EPS. As a group, analysts expect that Arcos Dorados Holdings Inc. will post 0.63 earnings per share for the current fiscal year.

Arcos Dorados Cuts Dividend

The firm also recently announced a dividend, which was paid on Friday, June 27th. Shareholders of record on Wednesday, June 25th were given a dividend of $0.06 per share. This represents a yield of 3.13%. The ex-dividend date was Tuesday, June 24th. Arcos Dorados's payout ratio is 36.92%.

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.