Globeflex Capital L P Invests $6.57 Million in Arcos Dorados Holdings Inc. $ARCO

Key Points

• Globeflex Capital acquired 815,609 Arcos Dorados shares worth approximately $6.57 million, representing about 0.39% of the company. Institutional investors and hedge funds collectively own 55.91% of ARCO.
• Arcos Dorados exceeded quarterly expectations, reporting $0.22 in EPS versus the $0.15 consensus and $1.31 billion in revenue versus $1.28 billion expected.
• ARCO shares opened at $7.96, while analysts maintain a “Moderate Buy” consensus with an average price target of $10.50; JPMorgan recently upgraded the stock to “overweight.”

Globeflex Capital L P acquired a new position in shares of Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund acquired 815,609 shares of the restaurant operator's stock, valued at approximately $6,574,000. Globeflex Capital L P owned approximately 0.39% of Arcos Dorados as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the company. FNY Investment Advisers LLC acquired a new position in shares of Arcos Dorados during the second quarter worth $40,000. Global Retirement Partners LLC grew its stake in Arcos Dorados by 9,074.6% during the 4th quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator's stock worth $42,000 after buying an additional 5,717 shares during the last quarter. Quarry LP purchased a new position in Arcos Dorados during the 3rd quarter worth $45,000. Aquatic Capital Management LLC acquired a new position in Arcos Dorados during the 3rd quarter valued at about $53,000. Finally, Truist Financial Corp purchased a new stake in Arcos Dorados in the fourth quarter valued at about $76,000. 55.91% of the stock is currently owned by institutional investors and hedge funds.

Arcos Dorados Price Performance

Shares of NYSE ARCO opened at $7.96 on Monday. Arcos Dorados Holdings Inc. has a 52 week low of $6.54 and a 52 week high of $9.75. The business's 50 day moving average price is $8.22 and its 200 day moving average price is $8.41. The company has a quick ratio of 0.81, a current ratio of 0.88 and a debt-to-equity ratio of 1.14. The firm has a market cap of $1.68 billion, a P/E ratio of 6.52 and a beta of 0.48.

Arcos Dorados (NYSE:ARCO - Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The restaurant operator reported $0.22 EPS for the quarter, beating the consensus estimate of $0.15 by $0.07. The business had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.28 billion. Arcos Dorados had a net margin of 5.15% and a return on equity of 12.50%. On average, sell-side analysts expect that Arcos Dorados Holdings Inc. will post 0.77 earnings per share for the current year.

Analyst Ratings Changes

A number of brokerages have recently weighed in on ARCO. Weiss Ratings lowered Arcos Dorados from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, June 29th. JPMorgan Chase & Co. upgraded shares of Arcos Dorados from a "neutral" rating to an "overweight" rating and lifted their target price for the stock from $9.00 to $10.50 in a research note on Friday, July 17th. Wall Street Zen upgraded shares of Arcos Dorados from a "hold" rating to a "buy" rating in a research note on Saturday, May 23rd. Finally, Zacks Research downgraded shares of Arcos Dorados from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 10th. Three equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, Arcos Dorados has a consensus rating of "Moderate Buy" and an average price target of $10.50.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc is the largest independent McDonald's franchisee in the world, operating under an exclusive license agreement with McDonald's Corporation. The company develops, owns and operates quick-service restaurants, offering the full McDonald's menu, including hamburgers, chicken sandwiches, salads, sides, desserts and McCafé beverages. In addition to restaurant operations, Arcos Dorados manages supply chain logistics, property development, training and support services for its franchise network.

Headquartered in Montevideo, Uruguay, Arcos Dorados serves 20 markets across Latin America and the Caribbean, including Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico and Uruguay.

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