Arcos Dorados Holdings Inc. (NYSE:ARCO) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Arcos Dorados has a “Moderate Buy” consensus rating from five analysts, with three buys and two holds. The average 12-month price target is $10.50, compared with the stock’s recent price of $7.79.
• Analyst sentiment has been mixed: JPMorgan upgraded the stock to overweight and raised its target to $10.50, while Zacks Research and Weiss Ratings issued downgrades to hold-related ratings.
• The company exceeded quarterly expectations, reporting $0.22 EPS versus $0.15 expected and revenue of $1.31 billion versus a $1.28 billion consensus estimate. Institutional investors own approximately 55.91% of the stock.

Arcos Dorados Holdings Inc. (NYSE:ARCO - Get Free Report) has earned an average rating of "Moderate Buy" from the five analysts that are presently covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 1-year target price among analysts that have covered the stock in the last year is $10.50.

Several equities analysts have recently weighed in on ARCO shares. Weiss Ratings downgraded Arcos Dorados from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday. Wall Street Zen raised shares of Arcos Dorados from a "hold" rating to a "buy" rating in a research note on Saturday, May 23rd. JPMorgan Chase & Co. upgraded shares of Arcos Dorados from a "neutral" rating to an "overweight" rating and boosted their price objective for the company from $9.00 to $10.50 in a research report on Friday, July 17th. Finally, Zacks Research downgraded shares of Arcos Dorados from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 10th.

Hedge Funds Weigh In On Arcos Dorados

Several hedge funds have recently added to or reduced their stakes in the company. Optimize Financial Inc raised its position 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 last quarter. DGS Capital Management LLC grew its position in Arcos Dorados by 10.6% during the 4th 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 last quarter. Mraz Amerine & Associates Inc. increased its stake in Arcos Dorados by 11.3% during the 4th quarter. Mraz Amerine & Associates Inc. now owns 19,665 shares of the restaurant operator's stock valued at $144,000 after purchasing an additional 2,000 shares in the last quarter. Moors & Cabot Inc. increased its stake in Arcos Dorados by 4.3% during the 4th quarter. Moors & Cabot Inc. now owns 49,409 shares of the restaurant operator's stock valued at $363,000 after purchasing an additional 2,023 shares in the last quarter. Finally, NewEdge Wealth LLC raised its holdings in shares of Arcos Dorados by 13.2% in the first quarter. NewEdge Wealth LLC now owns 20,289 shares of the restaurant operator's stock worth $167,000 after buying an additional 2,360 shares during the last quarter. 55.91% of the stock is currently owned by institutional investors.

Arcos Dorados Trading Down 1.9%

ARCO opened at $7.79 on Wednesday. The stock has a 50-day moving average of $8.13 and a 200 day moving average of $8.35. The company has a current ratio of 0.88, a quick ratio of 0.81 and a debt-to-equity ratio of 1.14. Arcos Dorados has a 12 month low of $6.54 and a 12 month high of $9.75. The firm has a market cap of $1.64 billion, a P/E ratio of 6.39 and a beta of 0.49.

Arcos Dorados (NYSE:ARCO - Get Free Report) last issued its quarterly earnings data on Friday, August 14th. The restaurant operator reported $0.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.15 by $0.07. The business had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.28 billion. Arcos Dorados had a return on equity of 12.50% and a net margin of 5.15%. As a group, research analysts forecast that Arcos Dorados will post 0.79 EPS for the current year.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc is the largest independent McDonald's franchisee in the world and operates McDonald's restaurants across Latin America and the Caribbean. The company holds the exclusive right to own, operate and franchise McDonald's restaurants in numerous markets throughout the region.

Its restaurants offer McDonald's core menu of hamburgers, cheeseburgers, chicken products, french fries, breakfast items, beverages and desserts, along with regionally adapted products. Arcos Dorados also serves customers through drive-thru locations, delivery, mobile ordering and other digital channels.

Arcos Dorados was established in 2007 following the acquisition of McDonald's operations in Latin America from McDonald's Corporation.

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