Arcos Dorados (NYSE:ARCO) Shares Gap Up on Strong Earnings

Arcos Dorados Holdings Inc. (NYSE:ARCO)’s stock price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $7.80, but opened at $8.30. Arcos Dorados shares last traded at $8.17, with a volume of 136,668 shares changing hands.

The restaurant operator reported $0.28 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.06. The business had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.15 billion. Arcos Dorados had a net margin of 3.25% and a return on equity of 29.74%.

Arcos Dorados Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 27th. Shareholders of record on Monday, March 24th will be given a $0.06 dividend. The ex-dividend date is Monday, March 24th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 3.02%. Arcos Dorados’s dividend payout ratio (DPR) is currently 34.29%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. MQS Management LLC raised its position in shares of Arcos Dorados by 98.3% during the 3rd quarter. MQS Management LLC now owns 25,469 shares of the restaurant operator’s stock worth $222,000 after purchasing an additional 12,626 shares during the last quarter. Aubrey Capital Management Ltd raised its position in shares of Arcos Dorados by 14.4% during the 3rd quarter. Aubrey Capital Management Ltd now owns 28,676 shares of the restaurant operator’s stock worth $250,000 after purchasing an additional 3,618 shares during the last quarter. Thompson Siegel & Walmsley LLC acquired a new position in shares of Arcos Dorados during the 3rd quarter worth about $1,557,000. Navellier & Associates Inc. raised its position in shares of Arcos Dorados by 26.8% during the 3rd quarter. Navellier & Associates Inc. now owns 20,558 shares of the restaurant operator’s stock worth $179,000 after purchasing an additional 4,342 shares during the last quarter. Finally, Managed Asset Portfolios LLC acquired a new position in shares of Arcos Dorados during the 3rd quarter worth about $7,389,000. Institutional investors and hedge funds own 55.91% of the company’s stock.

Arcos Dorados Stock Performance

The company has a current ratio of 0.63, a quick ratio of 0.57 and a debt-to-equity ratio of 1.40. The firm’s 50-day moving average is $7.79 and its two-hundred day moving average is $8.28. The stock has a market cap of $1.67 billion, a price-to-earnings ratio of 11.35 and a beta of 1.09.

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.