Penn Mutual Asset Management Acquires New Shares in Arcos Dorados Holdings Inc. $ARCO

Key Points

• Penn Mutual Asset Management has acquired a new stake in Arcos Dorados Holdings Inc., purchasing 66,000 shares for approximately $532,000, making it the firm's 28th largest holding.
• Arcos Dorados reported earnings per share of $0.11 for the latest quarter, exceeding analysts' expectations and reflecting a 2.8% year-over-year revenue increase, though its quarterly revenue was below analyst forecasts.
• JPMorgan Chase & Co. has downgraded Arcos Dorados from an "overweight" to a "neutral" rating, lowering its price target from $10.50 to $8.80.

Penn Mutual Asset Management purchased a new stake in shares of Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 66,000 shares of the restaurant operator's stock, valued at approximately $532,000. Arcos Dorados comprises about 1.0% of Penn Mutual Asset Management's investment portfolio, making the stock its 28th largest holding.

Several other large investors have also recently bought and sold shares of the stock. R Squared Ltd raised its stake in Arcos Dorados by 60.3% in the first quarter. R Squared Ltd now owns 11,800 shares of the restaurant operator's stock valued at $95,000 after buying an additional 4,440 shares during the period. Boothbay Fund Management LLC raised its stake in Arcos Dorados by 27.0% in the fourth 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 bought a new stake in Arcos Dorados in the fourth quarter valued at approximately $146,000. First Interstate Bank raised its stake in Arcos Dorados by 74.7% in the first 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. bought a new stake in Arcos Dorados in the fourth quarter valued at approximately $154,000. 55.91% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Separately, JPMorgan Chase & Co. lowered 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. One analyst has rated the stock with a Hold rating, According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $8.80.

Arcos Dorados Stock Performance

NYSE ARCO traded up $0.1050 during trading on Friday, reaching $7.0950. The company's stock had a trading volume of 677,226 shares, compared to its average volume of 1,515,697. The firm has a 50 day moving average price of $7.35 and a 200 day moving average price of $7.62. Arcos Dorados Holdings Inc. has a 12 month low of $6.51 and a 12 month high of $10.27. The firm has a market capitalization of $1.49 billion, a price-to-earnings ratio of 11.26, a price-to-earnings-growth ratio of 1.38 and a beta of 0.59. The company has a current ratio of 0.80, a quick ratio of 0.73 and a debt-to-equity ratio of 1.62.

Arcos Dorados (NYSE:ARCO - Get Free Report) last released its quarterly 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. Arcos Dorados had a net margin of 2.89% and a return on equity of 24.54%. The company had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the previous year, the business earned $0.13 earnings per share. The firm's quarterly revenue was up 2.8% on a year-over-year basis. As a group, equities analysts anticipate that Arcos Dorados Holdings Inc. will post 0.63 EPS for the current fiscal year.

Arcos Dorados Cuts Dividend

The company also recently declared a dividend, which was paid on Friday, June 27th. Stockholders of record on Wednesday, June 25th were issued a dividend of $0.06 per share. This represents a dividend yield of 313.0%. The ex-dividend date of this dividend was Tuesday, June 24th. Arcos Dorados's dividend payout ratio is 38.10%.

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.