Perpetual Ltd Cuts Stock Holdings in Arcos Dorados Holdings Inc. $ARCO

Key Points

• Perpetual Ltd cut its stake in Arcos Dorados by 16.6% in the fourth quarter to 1,447,814 shares (about 0.69% of the company), worth roughly $10.63 million.
• Arcos Dorados missed EPS in the latest quarter ($0.12 vs. $0.20 expected) while revenue rose 10.7% to $1.27 billion, and the company declared a $0.07 quarterly dividend (annualized yield ~3.4%).
• The stock has a market cap of $1.76 billion and a P/E of 8.26, about 55.9% is institutionally owned, and analysts have a consensus rating of Hold with a $8.70 price target.

Perpetual Ltd cut its stake in Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) by 16.6% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,447,814 shares of the restaurant operator's stock after selling 287,600 shares during the period. Perpetual Ltd owned about 0.69% of Arcos Dorados worth $10,627,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Quarry LP acquired a new stake in Arcos Dorados in the 3rd quarter valued at about $45,000. Aquatic Capital Management LLC acquired a new position in shares of Arcos Dorados during the third quarter worth about $53,000. Tudor Investment Corp ET AL purchased a new stake in shares of Arcos Dorados during the third quarter worth approximately $73,000. Tower Bridge Advisors purchased a new stake in shares of Arcos Dorados during the third quarter worth approximately $75,000. Finally, Arkadios Wealth Advisors acquired a new stake in Arcos Dorados in the third quarter valued at approximately $76,000. 55.91% of the stock is owned by institutional investors and hedge funds.

Arcos Dorados Stock Down 0.1%

Arcos Dorados stock opened at $8.35 on Friday. Arcos Dorados Holdings Inc. has a 1-year low of $6.51 and a 1-year high of $8.98. The company has a debt-to-equity ratio of 1.46, a current ratio of 1.03 and a quick ratio of 0.95. The stock has a market cap of $1.76 billion, a PE ratio of 8.26, a P/E/G ratio of 3.00 and a beta of 0.48. The stock's fifty day moving average is $8.27 and its two-hundred day moving average is $7.60.

Arcos Dorados (NYSE:ARCO - Get Free Report) last released its quarterly earnings data on Thursday, March 19th. The restaurant operator reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.20 by ($0.08). Arcos Dorados had a return on equity of 8.12% and a net margin of 4.53%.The business had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.26 billion. During the same period in the prior year, the company posted $0.28 earnings per share. The company's revenue was up 10.7% compared to the same quarter last year. On average, sell-side analysts expect that Arcos Dorados Holdings Inc. will post 0.63 EPS for the current fiscal year.

Arcos Dorados Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 29th. Shareholders of record on Wednesday, December 23rd will be paid a $0.07 dividend. This represents a $0.28 annualized dividend and a yield of 3.4%. The ex-dividend date is Wednesday, December 23rd. Arcos Dorados's dividend payout ratio is currently 23.76%.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings reiterated a "hold (c-)" rating on shares of Arcos Dorados in a research note on Monday, December 29th. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $8.70.

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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