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. boosted its stake in shares of Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) by 1.2% during the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 3,205,913 shares of the restaurant operator's stock after purchasing an additional 38,056 shares during the period. Private Management Group Inc. owned about 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 added to or reduced their stakes in the stock. Bank of New York Mellon Corp boosted its holdings in Arcos Dorados by 17.5% in the 4th quarter. Bank of New York Mellon Corp now owns 12,272 shares of the restaurant operator's stock valued at $89,000 after purchasing an additional 1,830 shares during the period. Virtu Financial LLC acquired a new position in Arcos Dorados in the 4th quarter valued at approximately $90,000. Quantbot Technologies LP acquired a new position in Arcos Dorados in the 4th quarter valued at approximately $129,000. Boothbay Fund Management LLC raised its holdings in Arcos Dorados by 27.0% in the 4th quarter. Boothbay Fund Management LLC now owns 19,761 shares of the restaurant operator's stock valued at $144,000 after acquiring an additional 4,201 shares in the last quarter. Finally, Janus Henderson Group PLC acquired a new position in Arcos Dorados in the 4th quarter valued at approximately $146,000. 55.91% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

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

Arcos Dorados Price Performance

Shares of Arcos Dorados stock traded down $0.08 during mid-day trading on Tuesday, reaching $7.02. 330,720 shares of the stock were exchanged, compared to its average volume of 1,498,718. The company has a market cap of $1.48 billion, a price-to-earnings ratio of 10.78 and a beta of 0.63. The company has a current ratio of 0.86, a quick ratio of 0.81 and a debt-to-equity ratio of 1.80. The firm has a 50-day simple moving average of $7.51 and a 200 day simple moving average of $7.68. Arcos Dorados Holdings Inc. has a fifty-two week low of $6.66 and a fifty-two week high of $10.55.

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

Arcos Dorados Cuts Dividend

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