Arcos Dorados Holdings Inc. $ARCO is Moerus Capital Management LLC's 4th Largest Position

Key Points

• Moerus Capital Management LLC increased its holdings in Arcos Dorados by 67.3%, owning over 3.5 million shares, making it the fourth largest holding in their investment portfolio.
• Analysts at JPMorgan Chase downgraded Arcos Dorados from an "overweight" to a "neutral" rating, lowering the price target from $10.50 to $8.80.
• Arcos Dorados recently announced a dividend payout of $0.06 per share, representing a yield of 313.0%, with a payout ratio of 36.92%.

Moerus Capital Management LLC lifted its holdings in shares of Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) by 67.3% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 3,552,013 shares of the restaurant operator's stock after purchasing an additional 1,429,338 shares during the period. Arcos Dorados comprises about 12.8% of Moerus Capital Management LLC's investment portfolio, making the stock its 4th biggest position. Moerus Capital Management LLC owned 1.69% of Arcos Dorados worth $28,629,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in ARCO. R Squared Ltd grew its holdings in shares of Arcos Dorados by 60.3% during the 1st quarter. R Squared Ltd now owns 11,800 shares of the restaurant operator's stock valued at $95,000 after purchasing an additional 4,440 shares during the last quarter. Boothbay Fund Management LLC boosted its position in Arcos Dorados by 27.0% during the 4th quarter. Boothbay Fund Management LLC now owns 19,761 shares of the restaurant operator's stock valued at $144,000 after buying an additional 4,201 shares during the period. Janus Henderson Group PLC purchased a new stake in Arcos Dorados during the 4th quarter valued at $146,000. First Interstate Bank boosted its position in Arcos Dorados by 74.7% during the 1st quarter. First Interstate Bank now owns 19,020 shares of the restaurant operator's stock valued at $153,000 after buying an additional 8,135 shares during the period. Finally, Raymond James Financial Inc. purchased a new stake in Arcos Dorados during the 4th quarter valued at $154,000. Institutional investors own 55.91% of the company's stock.

Wall Street Analysts Forecast Growth

Separately, JPMorgan Chase & Co. cut shares of Arcos Dorados from an "overweight" rating to a "neutral" rating and dropped their price target for the company from $10.50 to $8.80 in a research report on Wednesday, July 2nd. One analyst has rated the stock with a Hold rating, According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $8.80.

Arcos Dorados Trading Down 1.7%

Shares of ARCO traded down $0.1250 during trading hours on Tuesday, reaching $7.2550. 535,787 shares of the company traded hands, compared to its average volume of 1,512,725. The company's fifty day moving average price is $7.37 and its two-hundred day moving average price is $7.63. The company has a market capitalization of $1.53 billion, a price-to-earnings ratio of 11.52, a price-to-earnings-growth ratio of 1.44 and a beta of 0.59. The company has a quick ratio of 0.73, a current ratio of 0.80 and a debt-to-equity ratio of 1.62. Arcos Dorados Holdings Inc. has a 12 month low of $6.51 and a 12 month high of $10.27.

Arcos Dorados (NYSE:ARCO - Get Free Report) last announced its earnings results on Wednesday, August 13th. The restaurant operator reported $0.11 earnings per share for the quarter, beating analysts' consensus estimates of $0.05 by $0.06. The firm had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.22 billion. Arcos Dorados had a net margin of 2.89% and a return on equity of 24.54%. The company's revenue for the quarter was up 2.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.13 EPS. Equities research analysts predict 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 declared a dividend, which was paid on Friday, June 27th. Investors of record on Wednesday, June 25th were given a dividend of $0.06 per share. This represents a yield of 313.0%. The ex-dividend date of this dividend was Tuesday, June 24th. Arcos Dorados's dividend payout ratio (DPR) is 38.10%.

Arcos Dorados Profile

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.