Weiss Ratings Reaffirms "Sell (D+)" Rating for Arcos Dorados (NYSE:ARCO)

Key Points

• Weiss Ratings has reiterated a "sell (D+)" rating for Arcos Dorados (NYSE:ARCO), highlighting ongoing concerns about the company's performance.
• Despite Weiss Ratings' stance, Wall Street Zen upgraded Arcos Dorados from "hold" to "buy", showcasing a divide among analysts regarding the stock's potential.
• Arcos Dorados reported quarterly earnings of $0.11 per share, exceeding estimates, but its revenue of $1.14 billion fell short of analysts' expectations of $1.22 billion.

Arcos Dorados (NYSE:ARCO - Get Free Report)'s stock had its "sell (d+)" rating reiterated by analysts at Weiss Ratings in a report released on Friday,Weiss Ratings reports.

ARCO has been the topic of several other reports. Wall Street Zen raised Arcos Dorados from a "hold" rating to a "buy" rating in a research note on Saturday, September 13th. JPMorgan Chase & Co. cut Arcos Dorados from an "overweight" rating to a "neutral" rating and reduced their price objective for the stock from $10.50 to $8.80 in a research note on Wednesday, July 2nd. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $8.80.

Arcos Dorados Trading Down 0.2%

NYSE ARCO traded down $0.02 during trading hours on Friday, hitting $7.21. 713,983 shares of the company were exchanged, compared to its average volume of 1,446,940. The stock has a 50-day moving average price of $6.94 and a 200 day moving average price of $7.26. The company has a quick ratio of 0.73, a current ratio of 0.80 and a debt-to-equity ratio of 1.62. Arcos Dorados has a 52 week low of $6.51 and a 52 week high of $9.33. The stock has a market cap of $1.52 billion, a PE ratio of 11.44, a price-to-earnings-growth ratio of 1.39 and a beta of 0.60.

Arcos Dorados (NYSE:ARCO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 13th. The restaurant operator reported $0.11 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.06. Arcos Dorados had a return on equity of 24.54% and a net margin of 2.89%.The company had revenue of $1.14 billion for the quarter, compared to analysts' expectations of $1.22 billion. During the same period in the previous year, the firm posted $0.13 earnings per share. The firm's revenue for the quarter was up 2.8% on a year-over-year basis. Analysts forecast that Arcos Dorados will post 0.63 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Itau Unibanco Holding S.A. bought a new position in shares of Arcos Dorados during the first quarter valued at approximately $73,000. R Squared Ltd boosted its holdings in shares of Arcos Dorados by 60.3% in the first quarter. R Squared Ltd now owns 11,800 shares of the restaurant operator's stock valued at $95,000 after purchasing an additional 4,440 shares during the period. Mraz Amerine & Associates Inc. purchased a new stake in shares of Arcos Dorados in the second quarter valued at approximately $120,000. Olympiad Research LP purchased a new stake in shares of Arcos Dorados in the second quarter valued at approximately $140,000. Finally, First Interstate Bank boosted its holdings in shares of Arcos Dorados by 74.7% in the first quarter. First Interstate Bank now owns 19,020 shares of the restaurant operator's stock valued at $153,000 after purchasing an additional 8,135 shares during the period. Institutional investors own 55.91% of the company's stock.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc operates as a franchisee of McDonald's restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S.

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