Arcos Dorados (NYSE:ARCO) Downgraded by StockNews.com to Hold

StockNews.com cut shares of Arcos Dorados (NYSE:ARCO) from a buy rating to a hold rating in a report issued on Wednesday.

Arcos Dorados Trading Down 0.4 %

ARCO opened at $8.03 on Wednesday. The company’s 50 day moving average is $7.93 and its 200-day moving average is $8.24. The company has a market cap of $1.69 billion, a P/E ratio of 11.46 and a beta of 1.09. The company has a current ratio of 0.63, a quick ratio of 0.57 and a debt-to-equity ratio of 1.40. Arcos Dorados has a 1-year low of $7.02 and a 1-year high of $11.49.

Arcos Dorados (NYSE:ARCO) last announced its quarterly earnings results on Wednesday, March 12th. The restaurant operator reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.06. Arcos Dorados had a net margin of 3.25% and a return on equity of 29.74%. The firm had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.15 billion. Equities research analysts predict that Arcos Dorados will post 0.63 earnings per share for the current fiscal year.

Arcos Dorados Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, December 26th. Shareholders of record on Monday, December 22nd will be issued a dividend of $0.06 per share. The ex-dividend date of this dividend is Monday, December 22nd. This represents a $0.24 annualized dividend and a yield of 2.99%. Arcos Dorados’s payout ratio is 33.33%.

Hedge Funds Weigh In On Arcos Dorados

Several hedge funds and other institutional investors have recently bought and sold shares of ARCO. Spire Wealth Management grew its holdings in Arcos Dorados by 27.2% during the 4th quarter. Spire Wealth Management now owns 7,210 shares of the restaurant operator’s stock worth $52,000 after acquiring an additional 1,540 shares during the period. R Squared Ltd bought a new stake in shares of Arcos Dorados during the 4th quarter valued at about $54,000. Bank of New York Mellon Corp grew its stake in Arcos Dorados by 17.5% during the fourth quarter. Bank of New York Mellon Corp now owns 12,272 shares of the restaurant operator’s stock worth $89,000 after purchasing an additional 1,830 shares during the period. Sanctuary Advisors LLC bought a new stake in Arcos Dorados in the fourth quarter worth approximately $90,000. Finally, Virtu Financial LLC acquired a new position in Arcos Dorados in the fourth quarter valued at approximately $90,000. Institutional investors and hedge funds own 55.91% of the company’s stock.

About Arcos Dorados

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.