Arcos Dorados (NYSE:ARCO) Shares Gap Down After Earnings Miss

Arcos Dorados Holdings Inc. (NYSE:ARCO) shares gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $8.16, but opened at $7.07. Arcos Dorados shares last traded at $7.49, with a volume of 1,376,956 shares changing hands.

The restaurant operator reported $0.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.06). Arcos Dorados had a net margin of 3.25% and a return on equity of 29.74%. The firm had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.02 billion.

Arcos Dorados Dividend Announcement

The business also recently announced 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 dividend on an annualized basis and a yield of 3.24%. The ex-dividend date is Monday, December 22nd. Arcos Dorados’s payout ratio is presently 33.33%.

Wall Street Analyst Weigh In

Separately, StockNews.com lowered shares of Arcos Dorados from a “buy” rating to a “hold” rating in a research note on Wednesday, March 26th.

Hedge Funds Weigh In On Arcos Dorados

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ARCO. Assenagon Asset Management S.A. acquired a new position in Arcos Dorados in the 4th quarter worth $2,051,000. O Keefe Stevens Advisory Inc. boosted its stake in Arcos Dorados by 2.2% in the 4th quarter. O Keefe Stevens Advisory Inc. now owns 504,189 shares of the restaurant operator’s stock worth $3,670,000 after purchasing an additional 10,699 shares during the period. Perpetual Ltd boosted its stake in Arcos Dorados by 7.9% in the 4th quarter. Perpetual Ltd now owns 1,766,014 shares of the restaurant operator’s stock worth $12,857,000 after purchasing an additional 129,544 shares during the period. Baker Ellis Asset Management LLC boosted its stake in Arcos Dorados by 21.3% in the 4th quarter. Baker Ellis Asset Management LLC now owns 40,500 shares of the restaurant operator’s stock worth $295,000 after purchasing an additional 7,100 shares during the period. Finally, Hedges Asset Management LLC boosted its stake in Arcos Dorados by 2.1% in the 4th quarter. Hedges Asset Management LLC now owns 338,500 shares of the restaurant operator’s stock worth $2,464,000 after purchasing an additional 7,000 shares during the period. 55.91% of the stock is owned by institutional investors and hedge funds.

Arcos Dorados Stock Performance

The stock’s 50 day moving average price is $7.72 and its 200 day moving average price is $7.87. 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 company has a market capitalization of $1.56 billion, a price-to-earnings ratio of 10.57 and a beta of 0.65.

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.