Arcos Dorados (NYSE:ARCO) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

by · The Cerbat Gem

Arcos Dorados (NYSE:ARCO – Get Free Report) posted its earnings results on Wednesday. The restaurant operator reported $0.12 EPS for the quarter, beating analysts’ consensus estimates of $0.10 by $0.02, Zacks reports. Arcos Dorados had a net margin of 2.89% and a return on equity of 24.54%. The company had revenue of $1.19 billion during the quarter, compared to analysts’ expectations of $1.28 billion. During the same quarter in the prior year, the company posted $0.17 earnings per share. Arcos Dorados’s revenue for the quarter was up 5.2% compared to the same quarter last year.

Arcos Dorados Stock Performance

ARCO stock traded down $0.03 during trading on Friday, hitting $7.30. 1,674,226 shares of the company traded hands, compared to its average volume of 1,447,266. Arcos Dorados has a 1 year low of $6.51 and a 1 year high of $8.88. The company has a market cap of $1.54 billion, a PE ratio of 11.58, a P/E/G ratio of 3.46 and a beta of 0.60. The stock’s 50-day simple moving average is $7.00 and its 200 day simple moving average is $7.26. The company has a debt-to-equity ratio of 1.62, a current ratio of 0.80 and a quick ratio of 0.73.

Analyst Upgrades and Downgrades

ARCO has been the subject of a number of recent analyst reports. Weiss Ratings cut shares of Arcos Dorados from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, October 8th. Zacks Research cut shares of Arcos Dorados from a “hold” rating to a “strong sell” rating in a report on Thursday, October 23rd. Wall Street Zen downgraded shares of Arcos Dorados from a “buy” rating to a “hold” rating in a research note on Saturday, October 25th. Finally, JPMorgan Chase & Co. cut their target price on Arcos Dorados from $8.80 to $8.70 and set a “neutral” rating on the stock in a research report on Tuesday. One research analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Sell” and a consensus target price of $8.70.

Read Our Latest Stock Analysis on ARCO

Hedge Funds Weigh In On Arcos Dorados

Several large investors have recently made changes to their positions in the company. Sei Investments Co. acquired a new stake in Arcos Dorados during the third quarter valued at $106,000. Magnetar Financial LLC purchased a new stake in shares of Arcos Dorados during the 3rd quarter worth about $139,000. WINTON GROUP Ltd boosted its stake in shares of Arcos Dorados by 213.3% during the 2nd quarter. WINTON GROUP Ltd now owns 50,077 shares of the restaurant operator’s stock worth $395,000 after acquiring an additional 34,094 shares in the last quarter. Raymond James Financial Inc. grew its position in shares of Arcos Dorados by 31.5% during the 2nd quarter. Raymond James Financial Inc. now owns 53,332 shares of the restaurant operator’s stock valued at $421,000 after acquiring an additional 12,785 shares during the period. Finally, Squarepoint Ops LLC increased its stake in shares of Arcos Dorados by 682.8% in the 3rd quarter. Squarepoint Ops LLC now owns 142,289 shares of the restaurant operator’s stock valued at $960,000 after purchasing an additional 124,112 shares in the last quarter. 55.91% of the stock is currently owned by institutional investors and hedge funds.

About Arcos Dorados

(Get Free Report)

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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