Arcos Dorados Holdings Inc. (NYSE:ARCO) Given Consensus Rating of “Moderate Buy” by Brokerages

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) have earned a consensus recommendation of “Moderate Buy” from the five brokerages that are currently covering the stock, MarketBeat reports. Two analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average 1-year target price among brokerages that have covered the stock in the last year is $10.50.

A number of equities research analysts recently commented on the company. Wall Street Zen upgraded Arcos Dorados from a “hold” rating to a “buy” rating in a research report on Saturday, May 23rd. JPMorgan Chase & Co. upgraded shares of Arcos Dorados from a “neutral” rating to an “overweight” rating and lifted their price objective for the company from $9.00 to $10.50 in a research note on Friday, July 17th. Zacks Research downgraded shares of Arcos Dorados from a “strong-buy” rating to a “hold” rating in a report on Monday, August 10th. Finally, Weiss Ratings lowered shares of Arcos Dorados from a “hold (c)” rating to a “hold (c-)” rating in a research note on Monday.

Arcos Dorados Stock Down 1.9%

Arcos Dorados stock opened at $7.79 on Wednesday. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.81 and a current ratio of 0.88. The business’s 50-day simple moving average is $8.13 and its two-hundred day simple moving average is $8.35. The company has a market cap of $1.64 billion, a PE ratio of 6.39 and a beta of 0.49. Arcos Dorados has a fifty-two week low of $6.54 and a fifty-two week high of $9.75.

Arcos Dorados (NYSE:ARCO) last announced its quarterly earnings data on Friday, August 14th. The restaurant operator reported $0.22 earnings per share for the quarter, beating 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 business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.28 billion. Equities analysts anticipate that Arcos Dorados will post 0.79 EPS for the current year.

Institutional Investors Weigh In On Arcos Dorados

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio acquired a new stake in Arcos Dorados during the second quarter worth about $31,000. FNY Investment Advisers LLC acquired a new position in Arcos Dorados in the second quarter valued at approximately $40,000. Squarepoint Ops LLC acquired a new position in Arcos Dorados in the second quarter valued at approximately $81,000. Truist Financial Corp purchased a new stake in Arcos Dorados in the 4th quarter worth approximately $76,000. Finally, Baird Financial Group Inc. purchased a new stake in Arcos Dorados in the 2nd quarter worth approximately $87,000. 55.91% of the stock is owned by institutional investors and hedge funds.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc is the largest independent McDonald’s franchisee in the world and operates McDonald’s restaurants across Latin America and the Caribbean. The company holds the exclusive right to own, operate and franchise McDonald’s restaurants in numerous markets throughout the region.

Its restaurants offer McDonald’s core menu of hamburgers, cheeseburgers, chicken products, french fries, breakfast items, beverages and desserts, along with regionally adapted products. Arcos Dorados also serves customers through drive-thru locations, delivery, mobile ordering and other digital channels.

Arcos Dorados was established in 2007 following the acquisition of McDonald’s operations in Latin America from McDonald’s Corporation.