Arcos Dorados (NYSE:ARCO) Shares Gap Up Following Earnings Beat

Arcos Dorados Holdings Inc. (NYSE:ARCO)’s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $7.80, but opened at $8.30. Arcos Dorados shares last traded at $8.17, with a volume of 136,668 shares trading hands.

The restaurant operator reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.06. The company had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.15 billion. Arcos Dorados had a net margin of 3.25% and a return on equity of 29.74%.

Institutional Investors Weigh In On Arcos Dorados

Several institutional investors and hedge funds have recently made changes to their positions in ARCO. MQS Management LLC boosted its holdings in Arcos Dorados by 98.3% in the third quarter. MQS Management LLC now owns 25,469 shares of the restaurant operator’s stock valued at $222,000 after acquiring an additional 12,626 shares during the last quarter. Aubrey Capital Management Ltd lifted its position in shares of Arcos Dorados by 14.4% in the 3rd quarter. Aubrey Capital Management Ltd now owns 28,676 shares of the restaurant operator’s stock worth $250,000 after purchasing an additional 3,618 shares during the period. Thompson Siegel & Walmsley LLC acquired a new position in shares of Arcos Dorados in the 3rd quarter worth approximately $1,557,000. Navellier & Associates Inc. boosted its stake in shares of Arcos Dorados by 26.8% in the 3rd quarter. Navellier & Associates Inc. now owns 20,558 shares of the restaurant operator’s stock valued at $179,000 after purchasing an additional 4,342 shares during the last quarter. Finally, Managed Asset Portfolios LLC acquired a new stake in shares of Arcos Dorados during the third quarter worth $7,389,000. Institutional investors and hedge funds own 55.91% of the company’s stock.

Arcos Dorados Price Performance

The firm has a market cap of $1.73 billion, a P/E ratio of 11.76 and a beta of 1.09. The company has a quick ratio of 0.57, a current ratio of 0.63 and a debt-to-equity ratio of 1.40. The business’s 50 day moving average is $7.77 and its two-hundred day moving average is $8.28.

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.