Arcos Dorados Holdings Inc. (NYSE:ARCO) Stock Has Average Price Target of $10.50 According to Analysts

Key Points

• Analysts have a “Moderate Buy” consensus on Arcos Dorados, with three buy ratings and two holds. The average 12-month price target is $10.50, compared with the stock’s recent price of $7.79.
• Arcos Dorados reported quarterly EPS of $0.22, beating the $0.15 consensus estimate, while revenue of $1.31 billion also exceeded expectations.
• Institutional investors and hedge funds own approximately 55.91% of the company, with several firms increasing their positions recently.

Arcos Dorados Holdings Inc. (NYSE:ARCO - Get Free Report) has been given a consensus rating of "Moderate Buy" by the five ratings firms that are presently covering the stock, MarketBeat.com reports. Two analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1 year target price among brokers that have issued a report on the stock in the last year is $10.50.

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

Arcos Dorados Stock Down 4.0%

Arcos Dorados stock opened at $7.79 on Friday. 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 1-year low of $6.67 and a 1-year high of $9.75. The firm's fifty day simple moving average is $7.86 and its 200-day simple moving average is $8.28. The company has a market capitalization of $1.64 billion, a P/E ratio of 6.39 and a beta of 0.48.

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, topping analysts' consensus estimates of $0.15 by $0.07. The firm had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.28 billion. Arcos Dorados had a net margin of 5.15% and a return on equity of 12.50%. Sell-side analysts forecast that Arcos Dorados will post 0.79 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Arcos Dorados

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ARCO. DGS Capital Management LLC raised its position in shares of Arcos Dorados by 10.6% in the fourth quarter. DGS Capital Management LLC now owns 13,481 shares of the restaurant operator's stock valued at $99,000 after purchasing an additional 1,290 shares during the period. NewEdge Wealth LLC boosted its holdings in shares of Arcos Dorados by 13.2% during the 1st 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 period. Confluence Investment Management LLC boosted its holdings in shares of Arcos Dorados by 21.0% during the 2nd quarter. Confluence Investment Management LLC now owns 21,798 shares of the restaurant operator's stock worth $176,000 after buying an additional 3,783 shares during the period. Public Employees Retirement System of Ohio acquired a new position in Arcos Dorados in the 2nd quarter valued at $31,000. Finally, FNY Investment Advisers LLC acquired a new position in Arcos Dorados in the 2nd quarter valued at $40,000. Institutional investors and hedge funds own 55.91% of the company's stock.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc is the largest independent McDonald's franchisee in the world and the exclusive master franchisee for McDonald's in Latin America and the Caribbean. The company operates and franchises McDonald's restaurants across 20 countries and territories, serving customers through company-operated and franchised locations.

Its restaurant business offers McDonald's products including hamburgers, chicken sandwiches, French fries, breakfast items, desserts, soft drinks and McCafé beverages.

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