Fourth Sail Capital LP Acquires New Position in Arcos Dorados Holdings Inc. (NYSE:ARCO)

Fourth Sail Capital LP bought a new position in Arcos Dorados Holdings Inc. (NYSE:ARCO) during the second quarter, Holdings Channel.com reports. The fund bought 1,829,223 shares of the restaurant operator’s stock, valued at approximately $16,463,000. Arcos Dorados comprises approximately 3.8% of Fourth Sail Capital LP’s investment portfolio, making the stock its 12th biggest holding.

Other institutional investors have also modified their holdings of the company. Perpetual Ltd purchased a new stake in shares of Arcos Dorados in the first quarter valued at approximately $49,647,000. Private Management Group Inc. grew its position in shares of Arcos Dorados by 7.0% during the 2nd quarter. Private Management Group Inc. now owns 2,168,504 shares of the restaurant operator’s stock worth $19,517,000 after buying an additional 141,784 shares in the last quarter. Absolute Gestao de Investimentos Ltda. purchased a new position in shares of Arcos Dorados during the first quarter valued at $22,586,000. BNP Paribas Financial Markets raised its holdings in shares of Arcos Dorados by 2.4% in the first quarter. BNP Paribas Financial Markets now owns 1,612,824 shares of the restaurant operator’s stock valued at $17,935,000 after acquiring an additional 37,218 shares in the last quarter. Finally, TimesSquare Capital Management LLC lifted its stake in Arcos Dorados by 25.8% in the first quarter. TimesSquare Capital Management LLC now owns 1,466,000 shares of the restaurant operator’s stock worth $16,302,000 after acquiring an additional 301,020 shares during the period. 55.91% of the stock is owned by hedge funds and other institutional investors.

Arcos Dorados Price Performance

Shares of ARCO stock opened at $8.41 on Tuesday. The stock’s 50-day moving average is $9.27 and its 200 day moving average is $10.05. Arcos Dorados Holdings Inc. has a 1-year low of $8.08 and a 1-year high of $13.20. The company has a debt-to-equity ratio of 1.52, a current ratio of 0.63 and a quick ratio of 0.57. The company has a market cap of $1.77 billion, a P/E ratio of 10.38, a PEG ratio of 2.34 and a beta of 1.17.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings results on Wednesday, August 14th. The restaurant operator reported $0.13 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.13. The business had revenue of $1.11 billion for the quarter, compared to analysts’ expectations of $1.06 billion. Arcos Dorados had a net margin of 3.80% and a return on equity of 36.55%. The company’s revenue was up 6.8% compared to the same quarter last year. During the same period last year, the business earned $0.14 EPS. Research analysts predict that Arcos Dorados Holdings Inc. will post 0.73 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several research firms have recently commented on ARCO. JPMorgan Chase & Co. reduced their price target on shares of Arcos Dorados from $14.00 to $12.00 and set an “overweight” rating for the company in a report on Friday. StockNews.com downgraded shares of Arcos Dorados from a “buy” rating to a “hold” rating in a research note on Friday, May 24th.

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.