Arcos Dorados Holdings Inc. (NYSE:ARCO) Receives Consensus Recommendation of “Hold” from Brokerages

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) have been given a consensus rating of “Hold” by the five ratings firms that are covering the stock, Marketbeat Ratings reports. Three investment analysts have rated the stock with a hold recommendation and two have assigned a buy recommendation to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $8.70.

A number of research analysts have recently commented on the company. Santander raised Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th. The Goldman Sachs Group reiterated a “buy” rating on shares of Arcos Dorados in a report on Wednesday, April 8th. Wall Street Zen lowered Arcos Dorados from a “buy” rating to a “hold” rating in a research note on Saturday, April 25th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Arcos Dorados in a research note on Monday, April 27th.

Arcos Dorados News Summary

Here are the key news stories impacting Arcos Dorados this week:

• Positive Sentiment: Arcos Dorados beat Q1 EPS estimates, reporting $0.17 per share versus the $0.11 consensus, a sharp improvement from $0.07 a year ago. Arcos Dorados Reports First Quarter 2026 Financial Results
• Positive Sentiment: Revenue came in at $1.22 billion, slightly above expectations, and was up 12.9% year over year, signaling continued sales momentum. Arcos Dorados (ARCO) Tops Q1 Earnings and Revenue Estimates
• Positive Sentiment: Coverage highlighted that the company is benefiting from consumer demand for convenience and value, which supports traffic and may help sustain results. McDonald’s franchisee Arcos Dorados is cashing in on convenience, value
• Neutral Sentiment: Investors also reviewed the earnings call transcript and presentation for management commentary on margins, demand trends, and the outlook. Arcos Dorados Holdings Inc. (ARCO) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Some reports noted a revenue miss versus expectations in certain summaries, which may have limited the upside despite the earnings beat. Arcos Dorados Shares Rise After Earnings Beat Despite Revenue Miss (ARCO)

Institutional Trading of Arcos Dorados

A number of hedge funds have recently bought and sold shares of ARCO. Royal Bank of Canada increased its holdings in shares of Arcos Dorados by 23.1% in the 1st quarter. Royal Bank of Canada now owns 538,925 shares of the restaurant operator’s stock valued at $4,344,000 after acquiring an additional 101,301 shares during the period. Jane Street Group LLC boosted its position in Arcos Dorados by 58.3% during the first quarter. Jane Street Group LLC now owns 309,785 shares of the restaurant operator’s stock valued at $2,497,000 after purchasing an additional 114,034 shares in the last quarter. Jump Financial LLC bought a new position in Arcos Dorados in the second quarter worth about $1,315,000. WINTON GROUP Ltd raised its holdings in Arcos Dorados by 213.3% in the second quarter. WINTON GROUP Ltd now owns 50,077 shares of the restaurant operator’s stock worth $395,000 after purchasing an additional 34,094 shares in the last quarter. Finally, Nebula Research & Development LLC lifted its position in shares of Arcos Dorados by 6.3% during the second quarter. Nebula Research & Development LLC now owns 166,767 shares of the restaurant operator’s stock valued at $1,316,000 after buying an additional 9,892 shares during the last quarter. Hedge funds and other institutional investors own 55.91% of the company’s stock.

Arcos Dorados Price Performance

Arcos Dorados stock opened at $9.05 on Thursday. Arcos Dorados has a 12-month low of $6.51 and a 12-month high of $9.75. The company has a current ratio of 1.03, a quick ratio of 0.95 and a debt-to-equity ratio of 1.46. The firm has a 50-day moving average price of $8.48 and a 200-day moving average price of $8.00. The firm has a market capitalization of $1.91 billion, a PE ratio of 8.96, a price-to-earnings-growth ratio of 2.92 and a beta of 0.47.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings results on Wednesday, May 20th. The restaurant operator reported $0.17 EPS for the quarter, beating the consensus estimate of $0.11 by $0.06. The company had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.21 billion. Arcos Dorados had a net margin of 4.53% and a return on equity of 8.12%. The firm’s revenue was up 12.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.07 EPS. As a group, equities research analysts forecast that Arcos Dorados will post 0.68 EPS for the current year.

Arcos Dorados Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 29th. Investors of record on Wednesday, December 23rd will be issued a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Wednesday, December 23rd. Arcos Dorados’s dividend payout ratio (DPR) is presently 23.76%.

About Arcos Dorados

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.