Royal Bank of Canada Sells 164,478 Shares of Arcos Dorados Holdings Inc. $ARCO

Royal Bank of Canada lessened its holdings in Arcos Dorados Holdings Inc. (NYSE:ARCO) by 32.4% during the 1st quarter, HoldingsChannel reports. The institutional investor owned 342,983 shares of the restaurant operator’s stock after selling 164,478 shares during the period. Royal Bank of Canada’s holdings in Arcos Dorados were worth $2,829,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently made changes to their positions in the company. Optimize Financial Inc lifted its holdings in shares of Arcos Dorados by 1.5% during the 4th quarter. Optimize Financial Inc now owns 86,291 shares of the restaurant operator’s stock worth $633,000 after acquiring an additional 1,240 shares during the period. DGS Capital Management LLC increased its stake in Arcos Dorados by 10.6% in the fourth quarter. DGS Capital Management LLC now owns 13,481 shares of the restaurant operator’s stock valued at $99,000 after acquiring an additional 1,290 shares during the period. Mraz Amerine & Associates Inc. increased its stake in Arcos Dorados by 11.3% in the fourth quarter. Mraz Amerine & Associates Inc. now owns 19,665 shares of the restaurant operator’s stock valued at $144,000 after acquiring an additional 2,000 shares during the period. Moors & Cabot Inc. raised its position in Arcos Dorados by 4.3% in the fourth quarter. Moors & Cabot Inc. now owns 49,409 shares of the restaurant operator’s stock worth $363,000 after purchasing an additional 2,023 shares in the last quarter. Finally, BNP Paribas Financial Markets raised its position in Arcos Dorados by 0.3% in the third quarter. BNP Paribas Financial Markets now owns 918,063 shares of the restaurant operator’s stock worth $6,197,000 after purchasing an additional 2,312 shares in the last quarter. Institutional investors and hedge funds own 55.91% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have commented on ARCO shares. Santander upgraded shares of Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th. JPMorgan Chase & Co. upgraded Arcos Dorados from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $9.00 to $10.50 in a research note on Friday, July 17th. Zacks Research cut Arcos Dorados from a “strong-buy” rating to a “hold” rating in a report on Monday, August 10th. Weiss Ratings downgraded Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 29th. Finally, Wall Street Zen raised Arcos Dorados from a “hold” rating to a “buy” rating in a research note on Saturday, May 23rd. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $10.50.

Key Stories Impacting Arcos Dorados

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

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. Arcos Dorados reported adjusted earnings of $0.22 per share, up from $0.11 a year earlier and ahead of the $0.15 analyst consensus. Revenue reached a record $1.31 billion, surpassing the $1.28 billion estimate. Arcos Dorados Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Digital and loyalty initiatives supported sales momentum. Coverage highlighted record sales associated with the company’s digital channels and loyalty program, reinforcing management’s strategy to increase customer engagement and transaction frequency. The Bull Case for Arcos Dorados Following Record Digital and Loyalty-Driven Sales
• Positive Sentiment: Management’s earnings-call presentation emphasized operating progress. The results materials and conference call provided investors with additional detail on the quarter’s sales performance, profitability and growth priorities, helping support the bullish case following the results release. Arcos Dorados Q2 2026 Earnings Call Summary
• Neutral Sentiment: The earnings beat improves near-term sentiment, but investors will look for evidence that digital growth, loyalty adoption and revenue momentum can persist across Arcos Dorados’ Latin American markets. Arcos Dorados Q2 2026 Earnings Call Transcript
• Negative Sentiment: Despite the strong results and an initial rally, ARCO’s subsequent weakness suggests profit-taking and/or investor concern about valuation, margins, leverage or the sustainability of growth. The company’s reported net margin remained modest, while its debt-to-equity ratio was 1.25.

Arcos Dorados Trading Down 0.2%

Shares of ARCO stock opened at $7.89 on Monday. The company has a market capitalization of $1.66 billion, a P/E ratio of 6.47 and a beta of 0.48. Arcos Dorados Holdings Inc. has a 12-month low of $6.54 and a 12-month high of $9.75. The company has a quick ratio of 0.81, a current ratio of 0.88 and a debt-to-equity ratio of 1.14. The firm has a 50-day moving average price of $8.28 and a 200 day moving average price of $8.42.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings data on Thursday, August 13th. The restaurant operator reported $0.22 earnings per share for the quarter, topping the consensus estimate of $0.15 by $0.07. The firm had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.28 billion. Arcos Dorados had a net margin of 5.15% and a return on equity of 12.50%. Research analysts forecast that Arcos Dorados Holdings Inc. will post 0.77 earnings per share for the current fiscal year.

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.