Royal Bank of Canada Sells 164,478 Shares of Arcos Dorados Holdings Inc. $ARCO

Royal Bank of Canada trimmed its position in Arcos Dorados Holdings Inc. (NYSE:ARCO) by 32.4% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 342,983 shares of the restaurant operator’s stock after selling 164,478 shares during the quarter. Royal Bank of Canada owned about 0.16% of Arcos Dorados worth $2,829,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of ARCO. Lazard Asset Management LLC raised its holdings in Arcos Dorados by 35.3% in the 3rd quarter. Lazard Asset Management LLC now owns 20,128,477 shares of the restaurant operator’s stock worth $135,867,000 after acquiring an additional 5,255,199 shares during the period. Sei Investments Co. increased its stake in shares of Arcos Dorados by 132.8% in the first quarter. Sei Investments Co. now owns 3,483,732 shares of the restaurant operator’s stock worth $28,741,000 after purchasing an additional 1,987,271 shares during the period. Brightlight Capital Management LP increased its stake in shares of Arcos Dorados by 55.2% in the fourth quarter. Brightlight Capital Management LP now owns 3,466,800 shares of the restaurant operator’s stock worth $25,446,000 after purchasing an additional 1,232,800 shares during the period. SPX Gestao de Recursos Ltda lifted its position in shares of Arcos Dorados by 19.1% during the 4th quarter. SPX Gestao de Recursos Ltda now owns 7,551,676 shares of the restaurant operator’s stock worth $55,429,000 after purchasing an additional 1,209,055 shares during the last quarter. Finally, Renaissance Technologies LLC lifted its position in shares of Arcos Dorados by 312.7% during the 4th quarter. Renaissance Technologies LLC now owns 1,049,734 shares of the restaurant operator’s stock worth $7,705,000 after purchasing an additional 795,400 shares during the last quarter. 55.91% of the stock is currently owned by institutional investors and hedge funds.

Arcos Dorados News Roundup

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

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. Arcos Dorados reported adjusted earnings of $0.22 per share, up from $0.11 a year earlier and ahead of the $0.15 analyst consensus. Revenue reached a record $1.31 billion, surpassing the $1.28 billion estimate. Arcos Dorados Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Digital and loyalty initiatives supported sales momentum. Coverage highlighted record sales associated with the company’s digital channels and loyalty program, reinforcing management’s strategy to increase customer engagement and transaction frequency. The Bull Case for Arcos Dorados Following Record Digital and Loyalty-Driven Sales
• Positive Sentiment: Management’s earnings-call presentation emphasized operating progress. The results materials and conference call provided investors with additional detail on the quarter’s sales performance, profitability and growth priorities, helping support the bullish case following the results release. Arcos Dorados Q2 2026 Earnings Call Summary
• Neutral Sentiment: The earnings beat improves near-term sentiment, but investors will look for evidence that digital growth, loyalty adoption and revenue momentum can persist across Arcos Dorados’ Latin American markets. Arcos Dorados Q2 2026 Earnings Call Transcript
• Negative Sentiment: Despite the strong results and an initial rally, ARCO’s subsequent weakness suggests profit-taking and/or investor concern about valuation, margins, leverage or the sustainability of growth. The company’s reported net margin remained modest, while its debt-to-equity ratio was 1.25.

Arcos Dorados Stock Down 0.2%

NYSE ARCO opened at $7.89 on Monday. Arcos Dorados Holdings Inc. has a twelve month low of $6.54 and a twelve month high of $9.75. The stock has a market cap of $1.66 billion, a PE ratio of 6.47 and a beta of 0.48. The firm has a 50-day simple moving average of $8.28 and a 200 day simple moving average of $8.42. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.81 and a current ratio of 0.88.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings results on Thursday, August 13th. The restaurant operator reported $0.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.07. The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.28 billion. Arcos Dorados had a return on equity of 12.50% and a net margin of 5.15%. On average, research analysts forecast that Arcos Dorados Holdings Inc. will post 0.77 EPS for the current year.

Analyst Upgrades and Downgrades

ARCO has been the subject of several recent analyst reports. Santander raised Arcos Dorados to an “outperform” rating in a report on Monday, April 20th. Wall Street Zen upgraded Arcos Dorados from a “hold” rating to a “buy” rating in a report on Saturday, May 23rd. Weiss Ratings cut Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 29th. JPMorgan Chase & Co. upgraded shares of Arcos Dorados from a “neutral” rating to an “overweight” rating and raised their price objective for the stock from $9.00 to $10.50 in a research note on Friday, July 17th. Finally, Zacks Research lowered shares of Arcos Dorados from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 10th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $10.50.

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.