Fox Run Management L.L.C. Purchases New Position in Arcos Dorados Holdings Inc. $ARCO

Key Points

• Fox Run Management L.L.C. acquired 62,990 shares of Arcos Dorados Holdings Inc. valued at approximately $508,000 in the first quarter.
• Notable institutional investors have significantly increased their stakes, with Price T Rowe Associates boosting theirs by 40.1% in the fourth quarter, now owning over 13.4 million shares.
• JPMorgan Chase downgraded Arcos Dorados from an "overweight" to a "neutral" rating, reducing its price target from $10.50 to $8.80.

Fox Run Management L.L.C. purchased a new position in Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) during the 1st quarter, according to its most recent disclosure with the SEC. The fund purchased 62,990 shares of the restaurant operator's stock, valued at approximately $508,000.

Several other institutional investors also recently added to or reduced their stakes in ARCO. Nuveen LLC bought a new position in Arcos Dorados in the 1st quarter worth approximately $79,583,000. Price T Rowe Associates Inc. MD increased its position in Arcos Dorados by 40.1% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,463,466 shares of the restaurant operator's stock worth $98,015,000 after buying an additional 3,851,704 shares during the period. Fourth Sail Capital LP bought a new position in Arcos Dorados in the 1st quarter worth approximately $26,746,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in Arcos Dorados by 96.0% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,280,985 shares of the restaurant operator's stock worth $23,886,000 after buying an additional 1,606,821 shares during the period. Finally, Moerus Capital Management LLC increased its position in Arcos Dorados by 67.3% in the 1st quarter. Moerus Capital Management LLC now owns 3,552,013 shares of the restaurant operator's stock worth $28,629,000 after buying an additional 1,429,338 shares during the period. 55.91% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Separately, JPMorgan Chase & Co. downgraded Arcos Dorados from an "overweight" rating to a "neutral" rating and dropped their price target for the stock 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 MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $8.80.

Arcos Dorados Stock Performance

Shares of ARCO traded up $0.1150 on Friday, reaching $7.1050. 1,454,364 shares of the stock traded hands, compared to its average volume of 1,593,809. The firm has a market cap of $1.50 billion, a price-to-earnings ratio of 11.28, a P/E/G ratio of 1.39 and a beta of 0.59. The company has a debt-to-equity ratio of 1.62, a current ratio of 0.80 and a quick ratio of 0.73. Arcos Dorados Holdings Inc. has a 12 month low of $6.51 and a 12 month high of $10.27. The stock's 50-day moving average price is $7.34 and its 200-day moving average price is $7.61.

Arcos Dorados (NYSE:ARCO - Get Free Report) last released its quarterly earnings data on Wednesday, August 13th. The restaurant operator reported $0.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.05 by $0.06. The business had revenue of $1.14 billion for the quarter, compared to analysts' expectations of $1.22 billion. Arcos Dorados had a return on equity of 24.54% and a net margin of 2.89%.Arcos Dorados's quarterly revenue was up 2.8% on a year-over-year basis. During the same period in the previous year, the business posted $0.13 earnings per share. Equities analysts forecast that Arcos Dorados Holdings Inc. will post 0.63 EPS for the current fiscal year.

Arcos Dorados Cuts Dividend

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