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

StockNews.com downgraded shares of Arcos Dorados (NYSE:ARCO - Free Report) from a buy rating to a hold rating in a report published on Wednesday morning.

Arcos Dorados Stock Performance

NYSE ARCO traded down $0.11 during trading hours on Wednesday, hitting $8.14. The company's stock had a trading volume of 911,089 shares, compared to its average volume of 1,312,932. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.63 and a quick ratio of 0.57. The company has a market cap of $1.71 billion, a P/E ratio of 11.62 and a beta of 1.09. The company's 50 day simple moving average is $7.97 and its two-hundred day simple moving average is $8.24. Arcos Dorados has a 12 month low of $7.02 and a 12 month high of $11.49.

Arcos Dorados (NYSE:ARCO - Get Free Report) last issued its quarterly earnings data on Wednesday, March 12th. The restaurant operator reported $0.28 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.06. Arcos Dorados had a net margin of 3.25% and a return on equity of 29.74%. The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.15 billion. As a group, sell-side analysts expect that Arcos Dorados will post 0.63 EPS for the current fiscal year.

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Arcos Dorados Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 26th. Shareholders of record on Monday, December 22nd will be given a $0.06 dividend. This represents a $0.24 dividend on an annualized basis and a yield of 2.95%. The ex-dividend date of this dividend is Monday, December 22nd. Arcos Dorados's payout ratio is 33.33%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ARCO. Price T Rowe Associates Inc. MD grew its stake in Arcos Dorados by 40.1% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,463,466 shares of the restaurant operator's stock valued at $98,015,000 after acquiring an additional 3,851,704 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Arcos Dorados by 96.0% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,280,985 shares of the restaurant operator's stock worth $23,886,000 after buying an additional 1,606,821 shares in the last quarter. Private Management Group Inc. boosted its stake in Arcos Dorados by 34.7% during the fourth quarter. Private Management Group Inc. now owns 3,167,857 shares of the restaurant operator's stock valued at $23,062,000 after buying an additional 815,198 shares during the last quarter. Franklin Resources Inc. grew its holdings in shares of Arcos Dorados by 88.1% in the fourth quarter. Franklin Resources Inc. now owns 2,611,023 shares of the restaurant operator's stock valued at $19,008,000 after purchasing an additional 1,223,260 shares in the last quarter. Finally, Moerus Capital Management LLC lifted its position in Arcos Dorados by 11.0% during the fourth quarter. Moerus Capital Management LLC now owns 2,122,675 shares of the restaurant operator's stock valued at $15,453,000 after purchasing an additional 210,133 shares during the last quarter. 55.91% of the stock is owned by hedge funds and other institutional investors.

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.