Arcos Dorados Holdings Inc. (NYSE:ARCO) Stock Rated “Moderate Buy” by Sell-Side Analysts

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) have earned a consensus rating of “Moderate Buy” from the six analysts that are covering the firm, Marketbeat.com reports. Two research analysts have rated the stock with a hold recommendation, three have assigned a buy recommendation and one has assigned a strong 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 $9.50.

Several equities research analysts have weighed in on ARCO shares. JPMorgan Chase & Co. cut their price target on Arcos Dorados from $10.50 to $10.00 and set an “overweight” rating on the stock in a report on Tuesday. Weiss Ratings raised Arcos Dorados from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, October 8th. Bank of America downgraded Arcos Dorados from a “buy” rating to a “neutral” rating and set a $9.00 price objective for the company. in a research report on Monday, October 26th. Zacks Research raised Arcos Dorados from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 20th. Finally, Wall Street Zen raised shares of Arcos Dorados from a “hold” rating to a “buy” rating in a report on Saturday, November 7th.

Arcos Dorados Stock Performance

NYSE:ARCO opened at $6.92 on Thursday. Arcos Dorados has a 52 week low of $6.67 and a 52 week high of $9.75. The company has a fifty day simple moving average of $7.56 and a two-hundred day simple moving average of $8.17. The company has a quick ratio of 0.81, a current ratio of 0.88 and a debt-to-equity ratio of 1.14. The company has a market cap of $1.46 billion, a price-to-earnings ratio of 5.68 and a beta of 0.54.

Arcos Dorados (NYSE:ARCO) last announced its quarterly earnings data on Friday, August 14th. The restaurant operator reported $0.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.07. Arcos Dorados had a return on equity of 12.50% and a net margin of 5.15%. The business had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.28 billion. As a group, equities analysts anticipate that Arcos Dorados will post 0.79 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Arcos Dorados

A number of large investors have recently modified their holdings of the company. Boston Partners grew its stake in shares of Arcos Dorados by 7.3% during the third quarter. Boston Partners now owns 1,127,566 shares of the restaurant operator’s stock worth $8,062,000 after purchasing an additional 77,111 shares in the last quarter. Drive Wealth Management LLC acquired a new stake in Arcos Dorados in the third quarter valued at $119,000. R Squared Ltd raised its stake in Arcos Dorados by 58.6% in the third quarter. R Squared Ltd now owns 20,330 shares of the restaurant operator’s stock valued at $145,000 after buying an additional 7,509 shares in the last quarter. Private Management Group Inc. lifted its holdings in Arcos Dorados by 3.0% during the 3rd quarter. Private Management Group Inc. now owns 3,416,163 shares of the restaurant operator’s stock worth $24,426,000 after buying an additional 98,070 shares during the last quarter. Finally, State of Wyoming purchased a new stake in Arcos Dorados during the 3rd quarter worth about $249,000. 55.91% of the stock is owned by hedge funds and other institutional investors.

About Arcos Dorados

Arcos Dorados Holdings operates McDonald’s restaurants in Latin America and the Caribbean under a master franchise agreement. It is the largest independent McDonald’s franchisee in the world by restaurant count, with operations across 20 countries and territories in the region. The company’s restaurants serve McDonald’s menu items, including burgers, fries, chicken, breakfast foods, desserts and beverages. Its services also include McCafé offerings, delivery and digital ordering through channels such as mobile apps and kiosks.