Arcos Dorados Holdings Inc. (NYSE:ARCO) Receives $8.70 Average Price Target from Brokerages

Arcos Dorados Holdings Inc. (NYSE:ARCO) has earned an average rating of “Hold” from the five research firms that are presently covering the stock, Marketbeat.com reports. Three research analysts have rated the stock with a hold rating and two have given a buy rating to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $8.70.

A number of analysts recently commented on ARCO shares. The Goldman Sachs Group reiterated a “buy” rating on shares of Arcos Dorados in a research report on Wednesday, April 8th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Arcos Dorados in a research note on Monday, December 29th. Finally, Santander upgraded shares of Arcos Dorados to an “outperform” rating in a report on Monday.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Global Retirement Partners LLC boosted its holdings in shares of Arcos Dorados by 9,074.6% during the fourth quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator’s stock worth $42,000 after purchasing an additional 5,717 shares during the last quarter. Quarry LP acquired a new position in Arcos Dorados in the third quarter valued at $45,000. Aquatic Capital Management LLC purchased a new position in Arcos Dorados during the third quarter worth about $53,000. Truist Financial Corp purchased a new position in Arcos Dorados during the fourth quarter worth about $76,000. Finally, Tudor Investment Corp ET AL acquired a new stake in Arcos Dorados in the 3rd quarter worth about $73,000. 55.91% of the stock is currently owned by institutional investors and hedge funds.

Arcos Dorados Price Performance

ARCO stock opened at $9.47 on Friday. The stock’s 50 day moving average price is $8.37 and its 200 day moving average price is $7.77. The firm has a market cap of $2.00 billion, a P/E ratio of 9.38, a PEG ratio of 3.41 and a beta of 0.48. 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 has a 1 year low of $6.51 and a 1 year high of $9.75.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings results on Thursday, March 19th. The restaurant operator reported $0.12 earnings per share 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 company had revenue of $1.27 billion for the quarter, compared to analysts’ expectations of $1.26 billion. During the same period in the previous year, the business posted $0.28 EPS. The business’s quarterly revenue was up 10.7% on a year-over-year basis. On average, sell-side analysts expect that Arcos Dorados will post 0.69 earnings per share for the current fiscal year.

Arcos Dorados Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 29th. Investors of record on Wednesday, December 23rd will be given a dividend of $0.07 per share. The ex-dividend date is Wednesday, December 23rd. This represents a $0.28 dividend on an annualized basis and a yield of 3.0%. Arcos Dorados’s dividend payout ratio (DPR) is 23.76%.

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.