Arcos Dorados Holdings Inc. (NYSE:ARCO) Receives Average Recommendation of “Hold” from Brokerages

Arcos Dorados Holdings Inc. (NYSE:ARCO) has been given a consensus recommendation of “Hold” by the five analysts that are presently covering the stock, MarketBeat Ratings reports. Three analysts have rated the stock with a hold rating and two have given a buy rating to the company. The average 1 year target price among brokers that have covered the stock in the last year is $8.70.

Several brokerages have weighed in on ARCO. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Arcos Dorados in a research note on Wednesday, April 8th. Wall Street Zen raised Arcos Dorados from a “hold” rating to a “buy” rating in a research note on Saturday, May 23rd. Weiss Ratings lowered Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday. Finally, Santander upgraded shares of Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th.

Arcos Dorados Price Performance

Shares of NYSE:ARCO opened at $8.24 on Friday. The firm’s 50 day moving average is $8.61 and its two-hundred day moving average is $8.26. The firm has a market capitalization of $1.74 billion, a P/E ratio of 7.43 and a beta of 0.48. The company has a current ratio of 0.80, a quick ratio of 0.73 and a debt-to-equity ratio of 1.25. Arcos Dorados has a 52 week low of $6.51 and a 52 week high of $9.75.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings data on Wednesday, May 20th. The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.06. Arcos Dorados had a return on equity of 10.47% and a net margin of 4.86%.The business had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.21 billion. During the same period in the previous year, the firm posted $0.07 earnings per share. The business’s revenue was up 12.9% on a year-over-year basis. Analysts anticipate that Arcos Dorados will post 0.73 earnings per share for the current year.

Hedge Funds Weigh In On Arcos Dorados

Several large investors have recently bought and sold shares of the stock. Royal Bank of Canada lifted its stake in shares of Arcos Dorados by 23.1% in the 1st quarter. Royal Bank of Canada now owns 538,925 shares of the restaurant operator’s stock worth $4,344,000 after acquiring an additional 101,301 shares during the period. Jane Street Group LLC increased its stake in shares of Arcos Dorados by 58.3% during the first quarter. Jane Street Group LLC now owns 309,785 shares of the restaurant operator’s stock valued at $2,497,000 after acquiring an additional 114,034 shares during the period. Jump Financial LLC bought a new stake in Arcos Dorados during the second quarter worth approximately $1,315,000. WINTON GROUP Ltd raised its holdings in Arcos Dorados by 213.3% during the second quarter. WINTON GROUP Ltd now owns 50,077 shares of the restaurant operator’s stock worth $395,000 after purchasing an additional 34,094 shares in the last quarter. Finally, Nebula Research & Development LLC lifted its position in Arcos Dorados by 6.3% in the second quarter. Nebula Research & Development LLC now owns 166,767 shares of the restaurant operator’s stock worth $1,316,000 after purchasing an additional 9,892 shares during the period. Institutional investors and hedge funds own 55.91% of the company’s stock.

About Arcos Dorados

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.