Arcos Dorados (NYSE:ARCO) Downgraded by Zacks Investment Research to “Hold”


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Arcos Dorados (NYSE:ARCO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Thursday, Zacks.com reports.

According to Zacks, “Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s with its operations divided in Brazil; North Latin America division; South Latin America and the Caribbean division. It also runs quick service restaurants in Latin America and the Caribbean. It has operations in territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. Arcos Dorados Holdings Inc. is headquartered in Buenos Aires, Argentina. “

Separately, Bradesco Corretora restated a “neutral” rating on shares of Arcos Dorados in a report on Thursday, January 28th. Two investment analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. Arcos Dorados has an average rating of “Buy” and a consensus price target of $5.81.

Shares of ARCO stock traded down $0.08 on Thursday, reaching $5.13. The company’s stock had a trading volume of 41,423 shares, compared to its average volume of 1,005,295. The company has a market capitalization of $1.06 billion, a price-to-earnings ratio of -7.56 and a beta of 1.58. The stock’s fifty day simple moving average is $5.19 and its 200-day simple moving average is $4.88. Arcos Dorados has a 1 year low of $3.03 and a 1 year high of $5.66. The company has a current ratio of 0.78, a quick ratio of 0.71 and a debt-to-equity ratio of 4.96.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings results on Wednesday, March 17th. The restaurant operator reported $0.11 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.01 by $0.10. The company had revenue of $607.39 million during the quarter, compared to the consensus estimate of $589.79 million. Arcos Dorados had a negative return on equity of 55.12% and a negative net margin of 6.50%. Equities research analysts forecast that Arcos Dorados will post -0.64 earnings per share for the current year.

Hedge funds have recently modified their holdings of the company. Nuveen Asset Management LLC grew its stake in shares of Arcos Dorados by 0.4% during the fourth quarter. Nuveen Asset Management LLC now owns 18,885,400 shares of the restaurant operator’s stock worth $94,994,000 after acquiring an additional 76,568 shares during the last quarter. Moerus Capital Management LLC grew its stake in shares of Arcos Dorados by 8.9% during the fourth quarter. Moerus Capital Management LLC now owns 6,060,025 shares of the restaurant operator’s stock worth $30,482,000 after acquiring an additional 495,588 shares during the last quarter. Russell Investments Group Ltd. grew its stake in shares of Arcos Dorados by 642.2% during the fourth quarter. Russell Investments Group Ltd. now owns 531,211 shares of the restaurant operator’s stock worth $2,692,000 after acquiring an additional 459,641 shares during the last quarter. BlackRock Inc. grew its stake in shares of Arcos Dorados by 0.6% during the third quarter. BlackRock Inc. now owns 2,299,603 shares of the restaurant operator’s stock worth $9,428,000 after acquiring an additional 14,525 shares during the last quarter. Finally, Sei Investments Co. grew its stake in shares of Arcos Dorados by 1.3% during the third quarter. Sei Investments Co. now owns 299,201 shares of the restaurant operator’s stock worth $1,227,000 after acquiring an additional 3,936 shares during the last quarter. Institutional investors and hedge funds own 38.77% 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, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S.

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