Emeth Value Capital LLC Sells 927,966 Shares of Arcos Dorados Holdings Inc. $ARCO

Emeth Value Capital LLC cut its stake in Arcos Dorados Holdings Inc. (NYSE:ARCO) by 47.0% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,045,701 shares of the restaurant operator’s stock after selling 927,966 shares during the period. Arcos Dorados makes up about 9.5% of Emeth Value Capital LLC’s holdings, making the stock its 3rd largest holding. Emeth Value Capital LLC’s holdings in Arcos Dorados were worth $7,675,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors have also recently made changes to their positions in ARCO. Tudor Investment Corp ET AL purchased a new stake in Arcos Dorados in the 3rd quarter valued at $73,000. Auxier Asset Management LLC raised its holdings in shares of Arcos Dorados by 12.0% during the 3rd quarter. Auxier Asset Management LLC now owns 369,921 shares of the restaurant operator’s stock worth $2,497,000 after acquiring an additional 39,546 shares during the period. Morningstar Investment Management LLC purchased a new position in shares of Arcos Dorados during the 3rd quarter worth $553,000. PharVision Advisers LLC acquired a new position in shares of Arcos Dorados during the 3rd quarter valued at about $269,000. Finally, Verition Fund Management LLC boosted its position in shares of Arcos Dorados by 148.2% during the 3rd quarter. Verition Fund Management LLC now owns 147,192 shares of the restaurant operator’s stock valued at $994,000 after acquiring an additional 87,892 shares during the last quarter. Institutional investors and hedge funds own 55.91% of the company’s stock.

Arcos Dorados Price Performance

Arcos Dorados stock opened at $7.68 on Friday. The company’s 50 day simple moving average is $8.16 and its 200-day simple moving average is $7.51. The company has a debt-to-equity ratio of 1.32, a current ratio of 0.89 and a quick ratio of 0.81. Arcos Dorados Holdings Inc. has a 1 year low of $6.51 and a 1 year high of $8.98.

Arcos Dorados (NYSE:ARCO) last posted its quarterly earnings data on Thursday, March 19th. The restaurant operator reported $0.12 earnings per share for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.08). Arcos Dorados had a return on equity of 8.64% 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 revenue for the quarter was up 10.7% on a year-over-year basis. Equities research analysts forecast that Arcos Dorados Holdings Inc. will post 0.63 EPS for the current year.

Arcos Dorados Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 29th. Stockholders of record on Wednesday, December 23rd will be given a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a dividend yield of 3.6%. The ex-dividend date is Wednesday, December 23rd. Arcos Dorados’s dividend payout ratio (DPR) is currently 20.51%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on ARCO shares. Zacks Research upgraded shares of Arcos Dorados from a “strong sell” rating to a “hold” rating in a research report on Friday, November 21st. Weiss Ratings reiterated a “hold (c-)” rating on shares of Arcos Dorados in a report on Monday, December 29th. Three equities research analysts have rated the stock with a Hold rating, According to MarketBeat, Arcos Dorados currently has a consensus rating of “Hold” and an average target price of $8.70.

Key Arcos Dorados News

Here are the key news stories impacting Arcos Dorados this week:

• Positive Sentiment: Company raised its quarterly dividend to $0.07 (a 16.7% increase vs prior quarter) implying ~3.6% yield — supports income-focused demand for the shares.
• Positive Sentiment: Management highlighted strong digital growth and revenue expansion that helped offset some margin headwinds; company reiterated cost controls are tightening to protect profitability. Arcos Dorados Holdings Inc (ARCO) Q4 2025 Earnings Call Highlights: Strong Digital Growth and …
• Neutral Sentiment: Full earnings call transcripts and summaries are available for investors who want detail on regional trends, promotion cadence and margin drivers. Arcos Dorados Holdings Inc. (ARCO) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Deep-dive coverage notes revenue growth offsets some cost pressure but flags margin sensitivity to inflation and FX — useful for modeling near-term margins. ARCO Q4 Deep Dive: Revenue Growth Offsets Margin Pressure as Cost Controls Tighten
• Negative Sentiment: Reported EPS of $0.12 missed the $0.20 consensus (and compares to prior-year EPS), which pressured sentiment despite the revenue beat — an immediate negative for short-term momentum. Arcos Dorados (ARCO) Reports Q4 Loss, Beats Revenue Estimates
• Negative Sentiment: Company filed audited 2025 financials; the auditor flagged potential Brazilian tax risks — a regulatory/tax exposure that could increase future liabilities or volatility. Arcos Dorados Files 2025 Audited Financials, Auditor Flags Brazilian Tax Risks
• Negative Sentiment: Analyst commentary (Seeking Alpha) argues the Q4 print and structural challenges (low margins, volatile markets, brand positioning) don’t justify an upgrade — keeps a near-term “hold” view on valuation (~12x forward EPS). Arcos Dorados: Q4 Earnings Don’t Merit An Upgrade

Arcos Dorados 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.