Arcos Dorados (NYSE:ARCO) Cut to Sell (D+) at Weiss Ratings

Weiss Ratings lowered shares of Arcos Dorados (NYSE:ARCO) from a hold (c-) rating to a sell (d+) rating in a report issued on Wednesday,Weiss Ratings reports.

A number of other brokerages have also recently commented on ARCO. JPMorgan Chase & Co. cut Arcos Dorados from an “overweight” rating to a “neutral” rating and decreased their price target for the stock from $10.50 to $8.80 in a research report on Wednesday, July 2nd. Wall Street Zen raised shares of Arcos Dorados from a “hold” rating to a “buy” rating in a report on Saturday, September 13th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus target price of $8.80.

Arcos Dorados Stock Down 1.0%

Shares of ARCO opened at $6.82 on Wednesday. Arcos Dorados has a 12 month low of $6.51 and a 12 month high of $10.03. The firm’s 50 day moving average is $6.93 and its 200-day moving average is $7.31. The stock has a market capitalization of $1.44 billion, a PE ratio of 10.83, a P/E/G ratio of 1.34 and a beta of 0.60. The company has a current ratio of 0.80, a quick ratio of 0.73 and a debt-to-equity ratio of 1.62.

Arcos Dorados (NYSE:ARCO) last announced its earnings results on Wednesday, August 13th. The restaurant operator reported $0.11 EPS for the quarter, topping the consensus estimate of $0.05 by $0.06. Arcos Dorados had a net margin of 2.89% and a return on equity of 24.54%. The company had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.22 billion. During the same period last year, the firm earned $0.13 earnings per share. The business’s revenue for the quarter was up 2.8% on a year-over-year basis. Equities research analysts forecast that Arcos Dorados will post 0.63 EPS for the current year.

Institutional Investors Weigh In On Arcos Dorados

Institutional investors have recently made changes to their positions in the stock. Lazard Asset Management LLC bought a new stake in shares of Arcos Dorados during the 2nd quarter valued at about $117,349,000. Nuveen LLC bought a new position in shares of Arcos Dorados during the 1st quarter worth approximately $79,583,000. Pzena Investment Management LLC bought a new position in shares of Arcos Dorados during the 2nd quarter worth approximately $51,549,000. Fourth Sail Capital LP bought a new position in shares of Arcos Dorados during the 1st quarter worth approximately $26,746,000. Finally, Brightlight Capital Management LP bought a new position in Arcos Dorados during the second quarter worth $14,972,000. Institutional investors own 55.91% of the company’s stock.

About Arcos Dorados

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.