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

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) gapped up prior to trading on Wednesday following a better than expected earnings announcement. 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 traded.

The restaurant operator reported $0.28 EPS for the quarter, topping the consensus estimate of $0.22 by $0.06. Arcos Dorados had a return on equity of 29.74% and a net margin of 3.25%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ARCO. Spire Wealth Management increased its position in Arcos Dorados by 27.2% during the 4th quarter. Spire Wealth Management now owns 7,210 shares of the restaurant operator’s stock valued at $52,000 after buying an additional 1,540 shares in the last quarter. R Squared Ltd purchased a new stake in shares of Arcos Dorados in the fourth quarter worth about $54,000. Bank of New York Mellon Corp boosted its stake in shares of Arcos Dorados by 17.5% in the fourth quarter. Bank of New York Mellon Corp now owns 12,272 shares of the restaurant operator’s stock worth $89,000 after buying an additional 1,830 shares during the last quarter. Sanctuary Advisors LLC purchased a new stake in shares of Arcos Dorados in the fourth quarter worth about $90,000. Finally, Virtu Financial LLC purchased a new stake in shares of Arcos Dorados in the fourth quarter worth about $90,000. 55.91% of the stock is owned by institutional investors and hedge funds.

Arcos Dorados Stock Up 4.7 %

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 stock has a market cap of $1.72 billion, a PE ratio of 11.64 and a beta of 1.09. The business has a 50 day moving average price of $7.76 and a 200 day moving average price of $8.29.

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.