Arcos Dorados (NYSE:ARCO) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Arcos Dorados from “hold” to “buy.” Analysts’ overall consensus is “Moderate Buy,” with an average price target of $9.75.
• Analyst opinions are mixed: JPMorgan raised its rating to “overweight” and target to $10.50, while Bank of America downgraded the stock to “neutral” with a $9 target.
• In its latest reported quarter, Arcos Dorados posted EPS of $0.22 versus $0.15 expected and revenue of $1.31 billion versus $1.28 billion expected.

Arcos Dorados (NYSE:ARCO - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

A number of other equities research analysts also recently weighed in on the stock. Weiss Ratings raised shares of Arcos Dorados from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, October 8th. JPMorgan Chase & Co. upgraded shares of Arcos Dorados from a "neutral" rating to an "overweight" rating and boosted their price objective for the stock from $9.00 to $10.50 in a research note on Friday, July 17th. Zacks Research upgraded shares of Arcos Dorados from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, October 20th. Finally, Bank of America lowered shares of Arcos Dorados from a "buy" rating to a "neutral" rating and set a $9.00 target price on the stock. in a research note on Monday, October 26th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $9.75.

Arcos Dorados Price Performance

Shares of NYSE:ARCO opened at $6.98 on Friday. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.88 and a quick ratio of 0.81. The firm has a market capitalization of $1.47 billion, a price-to-earnings ratio of 5.72 and a beta of 0.54. The business's 50 day simple moving average is $7.62 and its 200-day simple moving average is $8.18. Arcos Dorados has a 12 month low of $6.67 and a 12 month high of $9.75.

Arcos Dorados (NYSE:ARCO - Get Free Report) last announced its quarterly earnings results on Friday, August 14th. The restaurant operator reported $0.22 earnings per share for the quarter, beating analysts' consensus estimates of $0.15 by $0.07. The company had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.28 billion. Arcos Dorados had a net margin of 5.15% and a return on equity of 12.50%. As a group, equities analysts forecast that Arcos Dorados will post 0.80 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Arcos Dorados

Several hedge funds have recently bought and sold shares of ARCO. NewEdge Wealth LLC boosted its holdings in shares of Arcos Dorados by 13.2% in the 1st quarter. NewEdge Wealth LLC now owns 20,289 shares of the restaurant operator's stock valued at $167,000 after purchasing an additional 2,360 shares in the last quarter. Confluence Investment Management LLC raised its stake in Arcos Dorados by 21.0% during the 2nd quarter. Confluence Investment Management LLC now owns 21,798 shares of the restaurant operator's stock worth $176,000 after buying an additional 3,783 shares during the period. Public Employees Retirement System of Ohio bought a new stake in Arcos Dorados during the 2nd quarter valued at $31,000. FNY Investment Advisers LLC bought a new position in Arcos Dorados in the 2nd quarter valued at about $40,000. Finally, DGS Capital Management LLC boosted its position in shares of Arcos Dorados by 50.6% during the first quarter. DGS Capital Management LLC now owns 20,300 shares of the restaurant operator's stock valued at $167,000 after buying an additional 6,819 shares during the last quarter. 55.91% of the stock is currently owned by institutional investors and hedge funds.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc NYSE: ARCO is the largest independent McDonald's franchisee in the world. The company operates and franchises McDonald's restaurants across Latin America and the Caribbean under a master franchise agreement with McDonald's Corporation.

Its restaurants offer McDonald's products, including hamburgers, chicken items, french fries, breakfast products, beverages, desserts and other menu offerings. Arcos Dorados also provides services such as McCafé, McDelivery, digital ordering and drive-thru operations, depending on the market.

Headquartered in Buenos Aires, Argentina, Arcos Dorados serves customers in approximately 20 countries and territories, including Argentina, Brazil, Chile, Colombia, Mexico, Peru, Puerto Rico, Uruguay and Venezuela.

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