Arcos Dorados Holdings Inc. $ARCO is Emeth Value Capital LLC’s 3rd Largest Position

Emeth Value Capital LLC reduced its position in Arcos Dorados Holdings Inc. (NYSE:ARCO) by 47.0% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,045,701 shares of the restaurant operator’s stock after selling 927,966 shares during the quarter. Arcos Dorados makes up approximately 9.5% of Emeth Value Capital LLC’s portfolio, making the stock its 3rd biggest position. Emeth Value Capital LLC’s holdings in Arcos Dorados were worth $7,675,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently bought and sold shares of ARCO. Seafarer Capital Partners LLC grew its holdings in shares of Arcos Dorados by 53.8% in the third quarter. Seafarer Capital Partners LLC now owns 400,000 shares of the restaurant operator’s stock valued at $2,700,000 after purchasing an additional 140,000 shares in the last quarter. Franklin Resources Inc. boosted its position in Arcos Dorados by 50.9% in the 2nd quarter. Franklin Resources Inc. now owns 3,907,929 shares of the restaurant operator’s stock valued at $30,834,000 after buying an additional 1,319,031 shares during the period. Lazard Asset Management LLC acquired a new position in shares of Arcos Dorados in the second quarter worth $117,349,000. General American Investors Co. Inc. increased its position in shares of Arcos Dorados by 62.2% during the third quarter. General American Investors Co. Inc. now owns 700,178 shares of the restaurant operator’s stock worth $4,726,000 after acquiring an additional 268,484 shares during the period. Finally, Brightlight Capital Management LP acquired a new stake in shares of Arcos Dorados in the second quarter valued at $14,972,000. 55.91% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Arcos Dorados

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

• Positive Sentiment: Company raised its quarterly dividend to $0.07 (a 16.7% increase vs prior quarter) implying ~3.6% yield — supports income-focused demand for the shares.
• Positive Sentiment: Management highlighted strong digital growth and revenue expansion that helped offset some margin headwinds; company reiterated cost controls are tightening to protect profitability. Arcos Dorados Holdings Inc (ARCO) Q4 2025 Earnings Call Highlights: Strong Digital Growth and …
• Neutral Sentiment: Full earnings call transcripts and summaries are available for investors who want detail on regional trends, promotion cadence and margin drivers. Arcos Dorados Holdings Inc. (ARCO) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Deep-dive coverage notes revenue growth offsets some cost pressure but flags margin sensitivity to inflation and FX — useful for modeling near-term margins. ARCO Q4 Deep Dive: Revenue Growth Offsets Margin Pressure as Cost Controls Tighten
• Negative Sentiment: Reported EPS of $0.12 missed the $0.20 consensus (and compares to prior-year EPS), which pressured sentiment despite the revenue beat — an immediate negative for short-term momentum. Arcos Dorados (ARCO) Reports Q4 Loss, Beats Revenue Estimates
• Negative Sentiment: Company filed audited 2025 financials; the auditor flagged potential Brazilian tax risks — a regulatory/tax exposure that could increase future liabilities or volatility. Arcos Dorados Files 2025 Audited Financials, Auditor Flags Brazilian Tax Risks
• Negative Sentiment: Analyst commentary (Seeking Alpha) argues the Q4 print and structural challenges (low margins, volatile markets, brand positioning) don’t justify an upgrade — keeps a near-term “hold” view on valuation (~12x forward EPS). Arcos Dorados: Q4 Earnings Don’t Merit An Upgrade

Arcos Dorados Price Performance

Arcos Dorados stock opened at $7.68 on Friday. The company has a quick ratio of 0.81, a current ratio of 0.89 and a debt-to-equity ratio of 1.32. The company has a fifty day simple moving average of $8.16 and a 200-day simple moving average of $7.51. Arcos Dorados Holdings Inc. has a 12-month low of $6.51 and a 12-month high of $8.98.

Arcos Dorados (NYSE:ARCO) last posted its earnings results on Thursday, March 19th. The restaurant operator reported $0.12 EPS for the quarter, missing the consensus estimate of $0.20 by ($0.08). Arcos Dorados had a net margin of 4.53% and a return on equity of 8.64%. The business had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.26 billion. During the same period last year, the company earned $0.28 EPS. The business’s quarterly revenue was up 10.7% compared to the same quarter last year. Research analysts expect that Arcos Dorados Holdings Inc. will post 0.63 EPS for the current year.

Arcos Dorados Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 29th. Stockholders of record on Wednesday, December 23rd will be issued a $0.07 dividend. The ex-dividend date is Wednesday, December 23rd. This represents a $0.28 dividend on an annualized basis and a dividend yield of 3.6%. Arcos Dorados’s dividend payout ratio is presently 20.51%.

Analysts Set New Price Targets

Several equities research analysts have weighed in on ARCO shares. Weiss Ratings restated a “hold (c-)” rating on shares of Arcos Dorados in a report on Monday, December 29th. Zacks Research raised Arcos Dorados from a “strong sell” rating to a “hold” rating in a research report on Friday, November 21st. Three investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $8.70.

Arcos Dorados Company Profile

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.