Arcos Dorados (NYSE:ARCO) Releases Earnings Results, Misses Expectations By $0.12 EPS

Arcos Dorados (NYSE:ARCO) released its quarterly earnings data on Thursday. The restaurant operator reported $0.12 EPS for the quarter, missing analysts’ consensus estimates of $0.24 by ($0.12), FiscalAI reports. The firm had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.26 billion. Arcos Dorados had a net margin of 5.39% and a return on equity of 20.42%. Arcos Dorados’s revenue was up 10.7% compared to the same quarter last year. During the same quarter last year, the business posted $0.28 earnings per share.

Arcos Dorados Price Performance

Shares of NYSE ARCO traded down $0.06 during midday trading on Thursday, hitting $7.64. 136,198 shares of the company’s stock were exchanged, compared to its average volume of 1,427,034. The company has a quick ratio of 0.81, a current ratio of 0.89 and a debt-to-equity ratio of 1.32. The business’s fifty day moving average price is $8.17 and its two-hundred day moving average price is $7.51. Arcos Dorados has a 12-month low of $6.51 and a 12-month high of $8.98.

Analyst Upgrades and Downgrades

ARCO has been the topic of several recent analyst reports. Weiss Ratings reiterated a “hold (c-)” rating on shares of Arcos Dorados in a research note on Monday, December 29th. Zacks Research upgraded shares of Arcos Dorados from a “strong sell” rating to a “hold” rating in a research report on Friday, November 21st. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, Arcos Dorados presently has a consensus rating of “Hold” and an average target price of $8.70.

Institutional Investors Weigh In On Arcos Dorados

Several hedge funds have recently bought and sold shares of the stock. Global Retirement Partners LLC increased its holdings in shares of Arcos Dorados by 9,074.6% in the 4th quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator’s stock worth $42,000 after buying an additional 5,717 shares during the last quarter. Quarry LP bought a new stake in shares of Arcos Dorados during the 3rd quarter worth $45,000. Aquatic Capital Management LLC bought a new stake in shares of Arcos Dorados during the 3rd quarter worth $53,000. Virtu Financial LLC purchased a new position in Arcos Dorados in the third quarter worth $87,000. Finally, Sei Investments Co. purchased a new position in Arcos Dorados in the third quarter worth $106,000. 55.91% of the stock is currently owned by institutional investors.

Arcos Dorados Company Profile

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.