Arcos Dorados (NYSE:ARCO) Shares Gap Up – Here’s What Happened

Arcos Dorados Holdings Inc. (NYSE:ARCO)’s stock price gapped up before the market opened on Monday . The stock had previously closed at $8.96, but opened at $9.33. Arcos Dorados shares last traded at $9.6040, with a volume of 306,409 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on ARCO shares. Santander upgraded shares of Arcos Dorados to an “outperform” rating in a research report on Monday. Weiss Ratings restated a “hold (c-)” rating on shares of Arcos Dorados in a research report on Monday, December 29th. Finally, The Goldman Sachs Group restated a “buy” rating on shares of Arcos Dorados in a research report on Wednesday, April 8th. Two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $8.70.

Arcos Dorados Stock Performance

The firm’s 50-day moving average price is $8.37 and its two-hundred day moving average price is $7.77. The firm has a market capitalization of $2.00 billion, a PE ratio of 9.38, a P/E/G ratio of 3.41 and a beta of 0.48. The company has a quick ratio of 0.95, a current ratio of 1.03 and a debt-to-equity ratio of 1.46.

Arcos Dorados (NYSE:ARCO) last released its earnings results on Thursday, March 19th. The restaurant operator reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.20 by ($0.08). The firm had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.26 billion. Arcos Dorados had a return on equity of 8.12% and a net margin of 4.53%.The business’s revenue was up 10.7% on a year-over-year basis. During the same period last year, the business earned $0.28 earnings per share. As a group, research analysts predict that Arcos Dorados Holdings Inc. will post 0.69 earnings per share for the current fiscal year.

Arcos Dorados Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 29th. Stockholders of record on Wednesday, December 23rd will be given a $0.07 dividend. This represents a $0.28 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Wednesday, December 23rd. Arcos Dorados’s dividend payout ratio (DPR) is 23.76%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Global Retirement Partners LLC increased its position in shares of Arcos Dorados by 9,074.6% in the fourth quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator’s stock worth $42,000 after acquiring an additional 5,717 shares in the last quarter. Quarry LP purchased a new position in Arcos Dorados during the 3rd quarter valued at about $45,000. Aquatic Capital Management LLC purchased a new position in Arcos Dorados during the 3rd quarter valued at about $53,000. Truist Financial Corp purchased a new position in Arcos Dorados during the 4th quarter valued at about $76,000. Finally, Tudor Investment Corp ET AL purchased a new position in Arcos Dorados during the 3rd quarter valued at about $73,000. 55.91% of the stock is owned by hedge funds and other institutional investors.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc is the largest independent McDonald’s franchisee in the world, operating under an exclusive license agreement with McDonald’s Corporation. The company develops, owns and operates quick-service restaurants, offering the full McDonald’s menu, including hamburgers, chicken sandwiches, salads, sides, desserts and McCafé beverages. In addition to restaurant operations, Arcos Dorados manages supply chain logistics, property development, training and support services for its franchise network.

Headquartered in Montevideo, Uruguay, Arcos Dorados serves 20 markets across Latin America and the Caribbean, including Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico and Uruguay.