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

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) have received an average rating of “Moderate Buy” from the five brokerages that are covering the company, MarketBeat reports. Two investment analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $10.50.

ARCO has been the subject of several research analyst reports. Weiss Ratings raised Arcos Dorados from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. Wall Street Zen cut shares of Arcos Dorados from a “buy” rating to a “hold” rating in a research note on Saturday. JPMorgan Chase & Co. raised shares of Arcos Dorados from a “neutral” rating to an “overweight” rating and lifted their price target for the company from $9.00 to $10.50 in a research note on Friday, July 17th. Finally, Zacks Research lowered shares of Arcos Dorados from a “strong-buy” rating to a “hold” rating in a report on Monday, August 10th.

Institutional Trading of Arcos Dorados

Several institutional investors have recently modified their holdings of ARCO. Public Employees Retirement System of Ohio purchased a new position in shares of Arcos Dorados in the second quarter valued at approximately $31,000. FNY Investment Advisers LLC acquired a new stake in shares of Arcos Dorados in the second quarter worth approximately $40,000. Squarepoint Ops LLC acquired a new stake in shares of Arcos Dorados in the second quarter worth approximately $81,000. Baird Financial Group Inc. purchased a new stake in shares of Arcos Dorados during the second quarter worth approximately $87,000. Finally, DGS Capital Management LLC increased its position in shares of Arcos Dorados by 10.6% during the fourth 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 in the last quarter. Institutional investors and hedge funds own 55.91% of the company’s stock.

Arcos Dorados Price Performance

Shares of Arcos Dorados stock opened at $7.97 on Friday. The company has a quick ratio of 0.81, a current ratio of 0.88 and a debt-to-equity ratio of 1.14. Arcos Dorados has a twelve month low of $6.67 and a twelve month high of $9.75. The business has a 50-day moving average price of $7.84 and a 200 day moving average price of $8.27. The firm has a market cap of $1.68 billion, a PE ratio of 6.54 and a beta of 0.48.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings results 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. Arcos Dorados had a return on equity of 12.50% and a net margin of 5.15%. The company had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.28 billion. Sell-side analysts predict that Arcos Dorados will post 0.79 earnings per share for the current fiscal year.

About Arcos Dorados

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.