Perpetual Ltd Grows Position in Arcos Dorados Holdings Inc. $ARCO

Key Points

• Perpetual Ltd increased its stake in Arcos Dorados Holdings Inc. by 4.0%, now holding approximately 1,744,914 shares worth $13.77 million, as reported in its recent SEC filing.
• Research firms have given mixed ratings on Arcos Dorados, with Wall Street Zen upgrading it to a "buy" while JPMorgan Chase & Co. downgraded it from "overweight" to "neutral," setting a new price target of $8.80.
• Arcos Dorados reported $1.14 billion in revenue and $0.11 EPS for the latest quarter, surpassing analysts' expectations by 6 cents, despite a year-over-year revenue growth of only 2.8%.

Perpetual Ltd boosted its position in shares of Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) by 4.0% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,744,914 shares of the restaurant operator's stock after buying an additional 66,900 shares during the period. Perpetual Ltd owned approximately 0.83% of Arcos Dorados worth $13,767,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the company. Itau Unibanco Holding S.A. acquired a new stake in shares of Arcos Dorados in the 1st quarter worth $73,000. R Squared Ltd boosted its position in shares of Arcos Dorados by 60.3% during the first quarter. R Squared Ltd now owns 11,800 shares of the restaurant operator's stock worth $95,000 after buying an additional 4,440 shares during the period. Janus Henderson Group PLC acquired a new stake in shares of Arcos Dorados in the fourth quarter valued at $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 in the last quarter. Finally, D. E. Shaw & Co. Inc. grew its holdings in shares of Arcos Dorados by 121.7% during the fourth quarter. D. E. Shaw & Co. Inc. now owns 22,253 shares of the restaurant operator's stock worth $162,000 after purchasing an additional 12,217 shares during the last quarter. 55.91% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

ARCO has been the subject of several recent analyst reports. JPMorgan Chase & Co. cut shares of Arcos Dorados from an "overweight" rating to a "neutral" rating and lowered their target price for the stock from $10.50 to $8.80 in a research note on Wednesday, July 2nd. Wall Street Zen upgraded shares of Arcos Dorados from a "hold" rating to a "buy" rating in a research report on Saturday, September 13th. 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 target price of $8.80.

Arcos Dorados Price Performance

Shares of ARCO stock traded down $0.05 during trading hours on Friday, hitting $6.70. 1,869,850 shares of the company's stock were exchanged, compared to its average volume of 1,206,499. 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 Holdings Inc. has a 12-month low of $6.51 and a 12-month high of $10.27. The company has a market capitalization of $1.41 billion, a PE ratio of 10.64, a PEG ratio of 1.31 and a beta of 0.63. The business's 50 day simple moving average is $7.02 and its 200-day simple moving average is $7.44.

Arcos Dorados (NYSE:ARCO - Get Free Report) last posted its quarterly earnings results on Wednesday, August 13th. The restaurant operator reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.06. Arcos Dorados had a return on equity of 24.54% and a net margin of 2.89%.The firm had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.22 billion. During the same quarter in the previous year, the firm earned $0.13 EPS. Arcos Dorados's quarterly revenue was up 2.8% compared to the same quarter last year. On average, equities research analysts anticipate that Arcos Dorados Holdings Inc. will post 0.63 earnings per share for the current year.

Arcos Dorados Company 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.