VELA Investment Management LLC Makes New $805,000 Investment in Arcos Dorados Holdings Inc. $ARCO

Key Points

• VELA Investment Management LLC has made a new investment of approximately $805,000 in Arcos Dorados Holdings Inc., purchasing 102,000 shares during the 2nd quarter.
• Recent analyst ratings for Arcos Dorados show a mixed outlook, with Weiss Ratings downgrading the stock to "sell," while Wall Street Zen upgraded it to "buy."
• Arcos Dorados reported a quarterly revenue of $1.14 billion, falling short of estimates but showing a year-over-year increase of 2.8%, with earnings per share surpassing expectations.

VELA Investment Management LLC purchased a new position in shares of Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 102,000 shares of the restaurant operator's stock, valued at approximately $805,000.

Other institutional investors also recently added to or reduced their stakes in the company. Alta Fox Capital Management LLC acquired a new position in Arcos Dorados during the first quarter worth approximately $9,033,000. Harbour Capital Advisors LLC acquired a new position in Arcos Dorados during the first quarter worth approximately $736,000. Diamond Hill Capital Management Inc. increased its position in Arcos Dorados by 27.5% during the first quarter. Diamond Hill Capital Management Inc. now owns 234,596 shares of the restaurant operator's stock worth $1,891,000 after buying an additional 50,557 shares during the period. Fourth Sail Capital LP acquired a new position in Arcos Dorados during the first quarter worth approximately $26,746,000. Finally, Private Management Group Inc. increased its position in Arcos Dorados by 1.2% during the first quarter. Private Management Group Inc. now owns 3,205,913 shares of the restaurant operator's stock worth $25,840,000 after buying an additional 38,056 shares during the period. Institutional investors and hedge funds own 55.91% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have commented on ARCO shares. Weiss Ratings lowered Arcos Dorados from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, October 8th. Wall Street Zen raised Arcos Dorados from a "hold" rating to a "buy" rating in a report on Saturday, September 13th. Finally, JPMorgan Chase & Co. lowered Arcos Dorados from an "overweight" rating to a "neutral" rating and dropped their target price for the company from $10.50 to $8.80 in a report on Wednesday, July 2nd. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $8.80.

Arcos Dorados Trading Up 2.2%

NYSE:ARCO opened at $7.08 on Friday. The firm has a market cap of $1.49 billion, a P/E ratio of 11.24, a PEG ratio of 1.34 and a beta of 0.60. The company has a current ratio of 0.80, a quick ratio of 0.73 and a debt-to-equity ratio of 1.62. The stock's 50 day simple moving average is $6.95 and its 200-day simple moving average is $7.28. Arcos Dorados Holdings Inc. has a 12-month low of $6.51 and a 12-month high of $9.75.

Arcos Dorados (NYSE:ARCO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 13th. The restaurant operator reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $1.22 billion. During the same quarter in the prior year, the company posted $0.13 earnings per share. Arcos Dorados's quarterly revenue was up 2.8% on a year-over-year basis. Equities analysts anticipate that Arcos Dorados Holdings Inc. will post 0.63 EPS for the current year.

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.

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