StockNews.com Lowers Arcos Dorados (NYSE:ARCO) to Hold

StockNews.com downgraded shares of Arcos Dorados (NYSE:ARCO) from a buy rating to a hold rating in a report released on Friday morning.

Arcos Dorados Stock Up 1.1 %

ARCO stock opened at $9.94 on Friday. The stock’s 50 day simple moving average is $10.87 and its 200 day simple moving average is $11.55. The company has a market cap of $2.09 billion, a P/E ratio of 12.27, a price-to-earnings-growth ratio of 1.73 and a beta of 1.27. The company has a debt-to-equity ratio of 1.47, a quick ratio of 0.66 and a current ratio of 0.66. Arcos Dorados has a fifty-two week low of $8.32 and a fifty-two week high of $13.20.

Arcos Dorados (NYSE:ARCO) last issued its earnings results on Wednesday, May 15th. The restaurant operator reported $0.14 earnings per share for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.02). Arcos Dorados had a return on equity of 38.57% and a net margin of 3.90%. The firm had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.02 billion. During the same period in the previous year, the company earned $0.18 earnings per share. Arcos Dorados’s revenue for the quarter was up 11.0% compared to the same quarter last year. On average, research analysts expect that Arcos Dorados will post 0.88 earnings per share for the current fiscal year.

Arcos Dorados Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 27th. Stockholders of record on Monday, December 23rd will be given a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a dividend yield of 2.41%. The ex-dividend date is Monday, December 23rd. Arcos Dorados’s payout ratio is presently 29.63%.

Hedge Funds Weigh In On Arcos Dorados

Several large investors have recently added to or reduced their stakes in ARCO. Activest Wealth Management purchased a new stake in shares of Arcos Dorados in the first quarter worth approximately $30,000. Adalta Capital Management LLC bought a new stake in Arcos Dorados during the first quarter worth $111,000. Lazard Asset Management LLC raised its position in Arcos Dorados by 35.4% in the 1st quarter. Lazard Asset Management LLC now owns 11,557 shares of the restaurant operator’s stock valued at $128,000 after buying an additional 3,022 shares during the last quarter. Navellier & Associates Inc. lifted its stake in Arcos Dorados by 11.3% during the 4th quarter. Navellier & Associates Inc. now owns 15,050 shares of the restaurant operator’s stock valued at $191,000 after acquiring an additional 1,529 shares in the last quarter. Finally, Confluence Investment Management LLC purchased a new position in Arcos Dorados during the 1st quarter worth $192,000. Institutional investors own 55.91% of the company’s stock.

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.