Arcos Dorados (NYSE:ARCO) Upgraded at JPMorgan Chase & Co.

Key Points

• JPMorgan Chase & Co. upgraded Arcos Dorados from “neutral” to “overweight” and raised its price target to $10.50 from $9.00, implying about 24% upside from the prior close.
• Other analysts have also turned more positive on the stock, leaving Arcos Dorados with a consensus “Buy” rating and an average price target of $10.50.
• The company recently reported strong quarterly results, posting EPS of $0.17 versus $0.11 expected and revenue of $1.22 billion, while revenue rose 12.9% year over year.

Arcos Dorados (NYSE:ARCO - Get Free Report) was upgraded by equities researchers at JPMorgan Chase & Co. from a "neutral" rating to an "overweight" rating in a report issued on Friday,Benzinga reports. The brokerage currently has a $10.50 target price on the restaurant operator's stock, up from their prior target price of $9.00. JPMorgan Chase & Co.'s price target indicates a potential upside of 24.29% from the stock's previous close.

Several other research analysts have also weighed in on ARCO. Santander raised Arcos Dorados to an "outperform" rating in a research report on Monday, April 20th. Weiss Ratings downgraded Arcos Dorados from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, June 29th. The Goldman Sachs Group reissued a "buy" rating on shares of Arcos Dorados in a report on Wednesday, April 8th. Wall Street Zen upgraded shares of Arcos Dorados from a "hold" rating to a "buy" rating in a report on Saturday, May 23rd. Finally, Zacks Research raised shares of Arcos Dorados from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and a consensus price target of $10.50.

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Arcos Dorados Stock Up 1.8%

NYSE:ARCO traded up $0.15 on Friday, hitting $8.45. 202,277 shares of the company's stock were exchanged, compared to its average volume of 1,346,417. The firm has a 50-day moving average price of $8.45 and a 200-day moving average price of $8.33. Arcos Dorados has a 52 week low of $6.51 and a 52 week high of $9.75. The company has a debt-to-equity ratio of 1.25, a current ratio of 0.80 and a quick ratio of 0.73. The company has a market cap of $1.78 billion, a P/E ratio of 7.59 and a beta of 0.48.

Arcos Dorados (NYSE:ARCO - Get Free Report) last announced its quarterly earnings data on Wednesday, May 20th. The restaurant operator reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.06. The company had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.21 billion. Arcos Dorados had a return on equity of 10.47% and a net margin of 4.86%.Arcos Dorados's revenue for the quarter was up 12.9% compared to the same quarter last year. During the same quarter last year, the company earned $0.07 EPS. As a group, analysts expect that Arcos Dorados will post 0.73 EPS for the current fiscal year.

Institutional Trading of Arcos Dorados

Several hedge funds have recently added to or reduced their stakes in the company. FNY Investment Advisers LLC bought a new stake in Arcos Dorados in the 2nd quarter valued at $40,000. Global Retirement Partners LLC increased its position in Arcos Dorados by 9,074.6% during the 4th quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator's stock worth $42,000 after buying an additional 5,717 shares during the period. Quarry LP acquired a new stake in shares of Arcos Dorados during the third quarter worth $45,000. Aquatic Capital Management LLC acquired a new stake in shares of Arcos Dorados during the third quarter worth $53,000. Finally, Tudor Investment Corp ET AL bought a new stake in shares of Arcos Dorados in the third quarter valued at about $73,000. 55.91% of the stock is owned by institutional investors and hedge funds.

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.

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