Arcos Dorados Holdings Inc. (ARCO) - What Are Brokerages Thinking About This Stock?

Key Points

• Analysts rate Arcos Dorados a “Moderate Buy” overall: Of six analysts, three recommend buying, one strongly recommends buying, and two rate it a hold. Their average 12-month price target is $9.75.
• The company reported quarterly EPS of $0.22, beating the $0.15 estimate, and revenue of $1.31 billion, above the $1.28 billion consensus.
• ARCO opened at $7.08, within its 12-month range of $6.67–$9.75; institutional investors own about 55.9% of the shares.

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the six analysts that are covering the company, MarketBeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation, three have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $9.75.

A number of research analysts have recently commented on the company. Weiss Ratings raised Arcos Dorados from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, October 8th. JPMorgan Chase & Co. raised Arcos Dorados from a "neutral" rating to an "overweight" rating and raised their price target for the stock from $9.00 to $10.50 in a research note on Friday, July 17th. Wall Street Zen cut Arcos Dorados from a "buy" rating to a "hold" rating in a report on Saturday, October 10th. Bank of America downgraded Arcos Dorados from a "buy" rating to a "neutral" rating and set a $9.00 price objective on the stock. in a research report on Monday, October 26th. Finally, Zacks Research upgraded Arcos Dorados from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, October 20th.

Arcos Dorados Price Performance

Arcos Dorados stock opened at $7.08 on Thursday. Arcos Dorados has a 12-month low of $6.67 and a 12-month high of $9.75. The company has a current ratio of 0.88, a quick ratio of 0.81 and a debt-to-equity ratio of 1.14. The firm has a 50-day moving average price of $7.66 and a 200-day moving average price of $8.19. The firm has a market capitalization of $1.49 billion, a PE ratio of 5.81 and a beta of 0.54.

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

Institutional Trading of Arcos Dorados

Large investors have recently made changes to their positions in the stock. Lazard Asset Management LLC increased its stake in Arcos Dorados by 7.9% in the 1st quarter. Lazard Asset Management LLC now owns 23,174,841 shares of the restaurant operator's stock worth $191,192,000 after buying an additional 1,703,169 shares during the period. Moerus Capital Management LLC lifted its holdings in Arcos Dorados by 19.9% during the 1st quarter. Moerus Capital Management LLC now owns 4,263,589 shares of the restaurant operator's stock valued at $35,175,000 after buying an additional 706,683 shares in the last quarter. Sei Investments Co. boosted its position in Arcos Dorados by 132.8% in the 1st quarter. Sei Investments Co. now owns 3,483,732 shares of the restaurant operator's stock valued at $28,741,000 after buying an additional 1,987,271 shares during the period. Private Management Group Inc. boosted its position in Arcos Dorados by 3.0% in the 3rd quarter. Private Management Group Inc. now owns 3,416,163 shares of the restaurant operator's stock valued at $24,426,000 after buying an additional 98,070 shares during the period. Finally, Globeflex Capital L P purchased a new stake in Arcos Dorados in the 2nd quarter valued at about $6,574,000. 55.91% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.