Zacks Research Downgrades Arcos Dorados (NYSE:ARCO) to Hold

Arcos Dorados (NYSE:ARCO) was downgraded by equities researchers 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 brokerages have also recently weighed in on ARCO. Santander upgraded Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th. Wall Street Zen upgraded Arcos Dorados from a “hold” rating to a “buy” rating in a research note on Saturday, May 23rd. Weiss Ratings downgraded shares of Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, June 29th. Finally, JPMorgan Chase & Co. raised shares of Arcos Dorados from a “neutral” rating to an “overweight” rating and increased their price target for the company from $9.00 to $10.50 in a research report on Friday, July 17th. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $10.50.

Arcos Dorados Stock Performance

Shares of NYSE:ARCO opened at $7.91 on Monday. The firm has a 50 day moving average of $8.30 and a 200 day moving average of $8.42. The company has a quick ratio of 0.73, a current ratio of 0.80 and a debt-to-equity ratio of 1.25. The company has a market capitalization of $1.67 billion, a price-to-earnings ratio of 7.12 and a beta of 0.48. Arcos Dorados has a 52 week low of $6.54 and a 52 week high of $9.75.

Arcos Dorados (NYSE:ARCO) last announced its 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 return on equity of 10.47% and a net margin of 4.86%.The business had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.21 billion. During the same quarter last year, the firm earned $0.07 EPS. The business’s revenue for the quarter was up 12.9% on a year-over-year basis. On average, sell-side analysts predict that Arcos Dorados will post 0.76 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Arcos Dorados

Large investors have recently modified their holdings of the business. FNY Investment Advisers LLC acquired a new position in shares of Arcos Dorados during the second quarter valued at about $40,000. Global Retirement Partners LLC raised its position in shares of Arcos Dorados by 9,074.6% in the 4th quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator’s stock valued at $42,000 after purchasing an additional 5,717 shares during the last quarter. Quarry LP acquired a new stake in Arcos Dorados in the 3rd quarter worth approximately $45,000. Aquatic Capital Management LLC acquired a new stake in Arcos Dorados in the 3rd quarter worth approximately $53,000. Finally, Truist Financial Corp purchased a new stake in Arcos Dorados during the 4th quarter worth approximately $76,000. Hedge funds and other 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.