Arcos Dorados (NYSE:ARCO) Downgraded by Zacks Research to Hold

Arcos Dorados (NYSE:ARCO) was downgraded by equities research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other equities research analysts have also weighed in on the company. Weiss Ratings lowered Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 29th. JPMorgan Chase & Co. upgraded 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 report on Friday, July 17th. Santander raised Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th. Finally, Wall Street Zen upgraded Arcos Dorados from a “hold” rating to a “buy” rating in a research report on Saturday, May 23rd. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $10.50.

Arcos Dorados Price Performance

Shares of NYSE:ARCO opened at $7.91 on Monday. The stock has a market cap of $1.67 billion, a PE ratio of 7.12 and a beta of 0.48. The company’s fifty day moving average is $8.30 and its 200 day moving average is $8.42. Arcos Dorados has a 52 week low of $6.54 and a 52 week high of $9.75. The company has a quick ratio of 0.73, a current ratio of 0.80 and a debt-to-equity ratio of 1.25.

Arcos Dorados (NYSE:ARCO) last posted its quarterly earnings results on Thursday, May 21st. The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.06. Arcos Dorados had a net margin of 4.86% and a return on equity of 10.47%. The business had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.21 billion. During the same period in the prior year, the business posted $0.07 earnings per share. The company’s revenue was up 12.9% on a year-over-year basis. Research analysts anticipate that Arcos Dorados will post 0.76 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Royal Bank of Canada raised its holdings in shares of Arcos Dorados by 23.1% during the first quarter. Royal Bank of Canada now owns 538,925 shares of the restaurant operator’s stock valued at $4,344,000 after acquiring an additional 101,301 shares in the last quarter. Jane Street Group LLC lifted its stake in Arcos Dorados by 58.3% in the first quarter. Jane Street Group LLC now owns 309,785 shares of the restaurant operator’s stock worth $2,497,000 after acquiring an additional 114,034 shares during the period. Jump Financial LLC bought a new stake in Arcos Dorados in the second quarter valued at $1,315,000. WINTON GROUP Ltd boosted its holdings in Arcos Dorados by 213.3% in the second quarter. WINTON GROUP Ltd now owns 50,077 shares of the restaurant operator’s stock valued at $395,000 after acquiring an additional 34,094 shares in the last quarter. Finally, Nebula Research & Development LLC increased its position in Arcos Dorados by 6.3% during the 2nd quarter. Nebula Research & Development LLC now owns 166,767 shares of the restaurant operator’s stock valued at $1,316,000 after purchasing an additional 9,892 shares during the period. Institutional investors 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, operating under an exclusive license agreement with McDonald’s Corporation. The company develops, owns and operates quick-service restaurants, offering the full McDonald’s menu, including hamburgers, chicken sandwiches, salads, sides, desserts and McCafé beverages. In addition to restaurant operations, Arcos Dorados manages supply chain logistics, property development, training and support services for its franchise network.

Headquartered in Montevideo, Uruguay, Arcos Dorados serves 20 markets across Latin America and the Caribbean, including Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico and Uruguay.