Arcos Dorados (NYSE:ARCO – Get Rating) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Monday, Zacks.com reports. The brokerage presently has a $8.50 price objective on the restaurant operator’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 10.10% from the stock’s previous close.
According to Zacks, “Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s with its operations divided in Brazil; North Latin America division; South Latin America and the Caribbean division. It also runs quick service restaurants in Latin America and the Caribbean. It has operations in territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. Arcos Dorados Holdings Inc. is headquartered in Buenos Aires, Argentina. “
A number of other equities analysts have also recently issued reports on the stock. Credit Suisse Group raised shares of Arcos Dorados from a “neutral” rating to an “outperform” rating and set a $9.50 price objective on the stock in a research report on Wednesday, February 23rd. Bank of America raised shares of Arcos Dorados from a “neutral” rating to a “buy” rating and increased their price objective for the stock from $7.80 to $10.00 in a research report on Thursday, March 24th. StockNews.com cut shares of Arcos Dorados from a “strong-buy” rating to a “buy” rating in a research report on Thursday, May 12th. Finally, HSBC cut shares of Arcos Dorados from a “buy” rating to a “hold” rating and set a $8.00 price target on the stock. in a research report on Monday, April 4th. One analyst has rated the stock with a hold rating and six have assigned a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of “Buy” and an average target price of $8.58.
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Arcos Dorados stock traded up $0.15 during trading hours on Monday, reaching $7.72. 59,234 shares of the company’s stock were exchanged, compared to its average volume of 1,155,995. The company has a quick ratio of 0.78, a current ratio of 0.84 and a debt-to-equity ratio of 3.09. The firm’s 50 day simple moving average is $7.58 and its 200 day simple moving average is $6.65. Arcos Dorados has a twelve month low of $4.33 and a twelve month high of $8.44. The firm has a market capitalization of $1.62 billion, a PE ratio of 16.08, a PEG ratio of 0.51 and a beta of 1.22.
Arcos Dorados (NYSE:ARCO – Get Rating) last issued its quarterly earnings results on Wednesday, May 18th. The restaurant operator reported $0.12 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.07. Arcos Dorados had a return on equity of 50.06% and a net margin of 3.45%. The firm had revenue of $787.30 million during the quarter, compared to the consensus estimate of $731.07 million. During the same period last year, the business posted ($0.14) EPS. Analysts anticipate that Arcos Dorados will post 0.44 EPS for the current year.
Several hedge funds have recently modified their holdings of the company. Invesco Ltd. increased its stake in shares of Arcos Dorados by 12.5% during the 1st quarter. Invesco Ltd. now owns 21,962,867 shares of the restaurant operator’s stock worth $178,559,000 after purchasing an additional 2,435,111 shares during the last quarter. Moerus Capital Management LLC increased its stake in shares of Arcos Dorados by 20.6% during the 1st quarter. Moerus Capital Management LLC now owns 6,031,654 shares of the restaurant operator’s stock worth $49,037,000 after purchasing an additional 1,030,193 shares during the last quarter. Macquarie Group Ltd. increased its stake in shares of Arcos Dorados by 1.1% during the 3rd quarter. Macquarie Group Ltd. now owns 3,208,030 shares of the restaurant operator’s stock worth $16,425,000 after purchasing an additional 34,270 shares during the last quarter. Morgan Stanley increased its stake in shares of Arcos Dorados by 3.7% during the 2nd quarter. Morgan Stanley now owns 3,186,085 shares of the restaurant operator’s stock worth $19,022,000 after purchasing an additional 112,256 shares during the last quarter. Finally, BlackRock Inc. increased its stake in shares of Arcos Dorados by 3.1% during the 3rd quarter. BlackRock Inc. now owns 2,485,975 shares of the restaurant operator’s stock worth $12,727,000 after purchasing an additional 75,536 shares during the last quarter. Institutional investors own 35.41% of the company’s stock.
Arcos Dorados Company Profile (Get Rating)
Arcos Dorados Holdings Inc operates as a franchisee of McDonald’s restaurants. The company 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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