Arcos Dorados (NYSE:ARCO) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Arcos Dorados from “hold” to “strong buy.” MarketBeat reports a consensus “buy” rating and an average analyst price target of $10.50.
• Arcos Dorados opened at $8.10, with a market capitalization of approximately $1.71 billion and a 52-week trading range of $6.67 to $9.75.
• The company exceeded quarterly expectations, reporting earnings per share of $0.22 versus the $0.15 consensus estimate and revenue of $1.31 billion versus $1.28 billion expected; institutional investors own 55.91% of its shares.

Arcos Dorados (NYSE:ARCO - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

A number of other research firms have also weighed in on ARCO. Wall Street Zen lowered shares of Arcos Dorados from a "buy" rating to a "hold" rating in a research note on Saturday, October 10th. JPMorgan Chase & Co. upgraded Arcos Dorados from a "neutral" rating to an "overweight" rating and increased their target price for the stock from $9.00 to $10.50 in a research report on Friday, July 17th. Finally, Weiss Ratings upgraded Arcos Dorados from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, October 8th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average target price of $10.50.

Arcos Dorados Price Performance

NYSE ARCO opened at $8.10 on Tuesday. 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 company has a market cap of $1.71 billion, a PE ratio of 6.64 and a beta of 0.48. Arcos Dorados has a 52 week low of $6.67 and a 52 week high of $9.75. The firm's 50-day simple moving average is $7.83 and its two-hundred day simple moving average is $8.26.

Arcos Dorados (NYSE:ARCO - Get Free Report) last posted its earnings results on Friday, August 14th. 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 during the quarter, compared to the consensus estimate of $1.28 billion. Arcos Dorados had a net margin of 5.15% and a return on equity of 12.50%. Research analysts predict that Arcos Dorados will post 0.80 earnings per share for the current year.

Institutional Investors Weigh In On Arcos Dorados

Several hedge funds and other institutional investors have recently modified their holdings of ARCO. O Keefe Stevens Advisory Inc. boosted its position in shares of Arcos Dorados by 2.7% in the third quarter. O Keefe Stevens Advisory Inc. now owns 694,787 shares of the restaurant operator's stock valued at $4,968,000 after acquiring an additional 18,068 shares during the period. Engineers Gate Manager LP increased its holdings in Arcos Dorados by 38.1% during the 2nd quarter. Engineers Gate Manager LP now owns 139,901 shares of the restaurant operator's stock worth $1,128,000 after acquiring an additional 38,621 shares during the period. Integrated Wealth Concepts LLC lifted its stake in Arcos Dorados by 15.9% in the 2nd quarter. Integrated Wealth Concepts LLC now owns 81,779 shares of the restaurant operator's stock worth $659,000 after purchasing an additional 11,244 shares in the last quarter. Squarepoint Ops LLC purchased a new stake in Arcos Dorados in the 2nd quarter worth approximately $81,000. Finally, Baird Financial Group Inc. purchased a new stake in Arcos Dorados in the 2nd quarter worth approximately $87,000. 55.91% of the stock is currently owned by institutional investors.

About Arcos Dorados

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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