Arcos Dorados Holdings Inc. (NYSE:ARCO) Receives Consensus Recommendation of "Buy" from Analysts

Key Points

• Analysts have a consensus “Buy” rating on Arcos Dorados, with three buy ratings, one strong buy and one hold. The average 12-month price target is $10.50, above the reported share price of $8.30.
• Recent analysts have generally become more positive, including JPMorgan upgrading the stock to “overweight” and Zacks Research raising its view to “strong buy.”
• Arcos Dorados reported quarterly EPS of $0.17 versus the $0.11 consensus estimate, while revenue rose 12.9% year over year to $1.22 billion. Institutional investors own 55.91% of the company.

Arcos Dorados Holdings Inc. (NYSE:ARCO - Get Free Report) has received a consensus recommendation of "Buy" from the five analysts that are currently covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $10.50.

A number of analysts recently issued reports on the company. JPMorgan Chase & Co. raised Arcos Dorados from a "neutral" rating to an "overweight" rating and lifted their target price for the company from $9.00 to $10.50 in a research report on Friday, July 17th. Zacks Research raised Arcos Dorados from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 10th. Weiss Ratings downgraded Arcos Dorados from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, June 29th. Santander raised Arcos Dorados to an "outperform" rating in a research report on Monday, April 20th. Finally, Wall Street Zen upgraded Arcos Dorados from a "hold" rating to a "buy" rating in a research note on Saturday, May 23rd.

Institutional Trading of Arcos Dorados

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

Arcos Dorados Stock Performance

Shares of ARCO opened at $8.30 on Tuesday. The stock has a market capitalization of $1.75 billion, a price-to-earnings ratio of 7.48 and a beta of 0.48. Arcos Dorados has a 12 month low of $6.51 and a 12 month high of $9.75. The firm has a fifty day simple moving average of $8.42 and a 200 day simple moving average of $8.37. The company has a current ratio of 0.80, a quick ratio of 0.73 and a debt-to-equity ratio of 1.25.

Arcos Dorados (NYSE:ARCO - Get Free Report) last issued its quarterly earnings results on Thursday, May 21st. The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.06. Arcos Dorados had a net margin of 4.86% and a return on equity of 10.47%. The firm had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.21 billion. During the same period in the previous year, the business earned $0.07 EPS. The company's revenue was up 12.9% compared to the same quarter last year. Research analysts forecast that Arcos Dorados will post 0.76 EPS 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.

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