Arcos Dorados (NYSE:ARCO) Upgraded to Buy at StockNews.com

StockNews.com upgraded shares of Arcos Dorados (NYSE:ARCO) from a hold rating to a buy rating in a research note released on Tuesday morning.

Arcos Dorados Price Performance

NYSE ARCO opened at $8.13 on Tuesday. Arcos Dorados has a 52 week low of $7.02 and a 52 week high of $11.49. The stock has a market cap of $1.71 billion, a price-to-earnings ratio of 11.61 and a beta of 1.09. The company has a 50-day moving average price of $7.85 and a two-hundred day moving average price of $8.26. 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 (NYSE:ARCO) last released its earnings results on Wednesday, March 12th. The restaurant operator reported $0.28 EPS for the quarter, beating the consensus estimate of $0.22 by $0.06. The business had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.15 billion. Arcos Dorados had a net margin of 3.25% and a return on equity of 29.74%. Analysts forecast that Arcos Dorados will post 0.63 EPS for the current year.

Arcos Dorados Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 26th. Investors of record on Monday, December 22nd will be paid a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 2.95%. The ex-dividend date is Monday, December 22nd. Arcos Dorados’s dividend payout ratio is currently 33.33%.

Institutional Investors Weigh In On Arcos Dorados

A number of institutional investors have recently modified their holdings of the stock. Spire Wealth Management grew its position in Arcos Dorados by 27.2% in the fourth 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 in the last quarter. R Squared Ltd bought a new stake in Arcos Dorados in the 4th quarter valued at $54,000. Bank of New York Mellon Corp grew its position 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 buying an additional 1,830 shares in the last quarter. Sanctuary Advisors LLC acquired a new stake in shares of Arcos Dorados during the 4th quarter worth approximately $90,000. Finally, Virtu Financial LLC bought a new stake in Arcos Dorados in the 4th quarter valued at $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.