Pzena Investment Management LLC Trims Stake in Arcos Dorados Holdings Inc. $ARCO

Key Points

• Pzena Investment Management trimmed its stake in Arcos Dorados by 7.6% in the fourth quarter, selling 864,730 shares and ending with 10.56 million shares valued at about $77.5 million.
• Arcos Dorados reported a strong first quarter, beating EPS expectations at $0.17 versus $0.11 estimated, while revenue came in slightly above forecasts at $1.22 billion and rose 12.9% year over year.
• Sentiment around the stock remains mixed: analysts currently have a Hold consensus with a $8.70 target price, even as the company’s dividend yields about 3.1% and shares recently traded near $9.15.

Pzena Investment Management LLC lessened its position in Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) by 7.6% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 10,562,564 shares of the restaurant operator's stock after selling 864,730 shares during the quarter. Pzena Investment Management LLC's holdings in Arcos Dorados were worth $77,529,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of the company. Lazard Asset Management LLC raised its holdings in shares of Arcos Dorados by 35.3% in the 3rd quarter. Lazard Asset Management LLC now owns 20,128,477 shares of the restaurant operator's stock valued at $135,867,000 after buying an additional 5,255,199 shares during the period. SPX Gestao de Recursos Ltda raised its holdings in shares of Arcos Dorados by 39.9% in the 3rd quarter. SPX Gestao de Recursos Ltda now owns 6,342,621 shares of the restaurant operator's stock valued at $42,813,000 after buying an additional 1,808,125 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Arcos Dorados by 3.1% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,508,707 shares of the restaurant operator's stock valued at $27,684,000 after buying an additional 105,972 shares during the period. Private Management Group Inc. raised its holdings in shares of Arcos Dorados by 6.2% in the 3rd quarter. Private Management Group Inc. now owns 3,379,280 shares of the restaurant operator's stock valued at $22,810,000 after buying an additional 196,282 shares during the period. Finally, Brightlight Capital Management LP raised its holdings in shares of Arcos Dorados by 17.7% in the 3rd quarter. Brightlight Capital Management LP now owns 2,234,000 shares of the restaurant operator's stock valued at $15,080,000 after buying an additional 336,400 shares during the period. Hedge funds and other institutional investors own 55.91% of the company's stock.

Key Stories Impacting Arcos Dorados

Here are the key news stories impacting Arcos Dorados this week:

• Positive Sentiment: Arcos Dorados beat quarterly profit expectations by a wide margin, which is the main catalyst behind the stock’s strength. Arcos Dorados Holdings Inc. NYSE: ARCO Q1 2026 Earnings Call Transcript
• Positive Sentiment: Quarterly revenue edged above estimates and rose sharply from a year ago, suggesting healthy traffic and resilient consumer demand in its Latin American markets. Arcos Dorados Reports First Quarter 2026 Financial Results
• Positive Sentiment: Media coverage highlighted that the company is benefiting from its focus on convenience and value, reinforcing the view that the brand is gaining share with price-sensitive customers. McDonald's Franchisee Arcos Dorados Is Cashing In On Convenience, Value
• Neutral Sentiment: Several transcript and summary articles about the earnings call may help investors gauge management commentary, but they do not add much new beyond the initial earnings beat. Arcos Dorados Holdings Inc. (ARCO) Q1 2026 Earnings Call Transcript

Analysts Set New Price Targets

Several equities research analysts recently issued reports on ARCO shares. The Goldman Sachs Group reiterated a "buy" rating on shares of Arcos Dorados in a report on Wednesday, April 8th. Weiss Ratings reiterated a "hold (c)" rating on shares of Arcos Dorados in a report on Monday, April 27th. Wall Street Zen downgraded Arcos Dorados from a "buy" rating to a "hold" rating in a report on Saturday, April 25th. Finally, Santander upgraded Arcos Dorados to an "outperform" rating in a report on Monday, April 20th. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $8.70.

Arcos Dorados Trading Up 0.7%

NYSE:ARCO opened at $9.15 on Friday. The stock has a 50-day simple moving average of $8.50 and a 200-day simple moving average of $8.02. The stock has a market cap of $1.93 billion, a P/E ratio of 8.24, a P/E/G ratio of 3.14 and a beta of 0.47. Arcos Dorados Holdings Inc. has a 1 year low of $6.51 and a 1 year high of $9.75. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.95 and a current ratio of 1.03.

Arcos Dorados (NYSE:ARCO - Get Free Report) last released its quarterly earnings data on Wednesday, May 20th. The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.06. The business had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.21 billion. Arcos Dorados had a return on equity of 10.76% and a net margin of 4.86%.The business's quarterly revenue was up 12.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.07 EPS. As a group, analysts anticipate that Arcos Dorados Holdings Inc. will post 0.71 earnings per share for the current fiscal year.

Arcos Dorados Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 29th. Stockholders of record on Wednesday, December 23rd will be given a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend is Wednesday, December 23rd. Arcos Dorados's dividend payout ratio is currently 21.62%.

About Arcos Dorados

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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