Arcos Dorados (NYSE:ARCO) Lowered to “Hold” Rating by StockNews.com

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

Arcos Dorados Stock Performance

Shares of ARCO opened at $8.03 on Wednesday. The stock has a 50-day moving average of $7.93 and a 200-day moving average of $8.24. The company has a market cap of $1.69 billion, a PE ratio of 11.46 and a beta of 1.09. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.63 and a quick ratio of 0.57. Arcos Dorados has a one year low of $7.02 and a one year high of $11.49.

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

Arcos Dorados Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 26th. Investors of record on Monday, December 22nd will be issued a $0.06 dividend. The ex-dividend date is Monday, December 22nd. This represents a $0.24 dividend on an annualized basis and a dividend yield of 2.99%. Arcos Dorados’s dividend payout ratio is presently 33.33%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Spire Wealth Management raised its holdings in shares of Arcos Dorados by 27.2% in the fourth quarter. Spire Wealth Management now owns 7,210 shares of the restaurant operator’s stock valued at $52,000 after purchasing an additional 1,540 shares during the last quarter. R Squared Ltd bought a new stake in Arcos Dorados in the 4th quarter worth about $54,000. Bank of New York Mellon Corp grew its position in Arcos Dorados by 17.5% in the 4th 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 in the last quarter. Sanctuary Advisors LLC purchased a new stake in Arcos Dorados in the 4th quarter valued at about $90,000. Finally, Virtu Financial LLC bought a new position in shares of Arcos Dorados during the 4th quarter worth approximately $90,000. Institutional investors own 55.91% of the company’s stock.

Arcos Dorados Company Profile

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.