JPMorgan Chase & Co. Cuts Arcos Dorados (NYSE:ARCO) Price Target to $8.70

Arcos Dorados (NYSE:ARCO) had its price objective trimmed by JPMorgan Chase & Co. from $8.80 to $8.70 in a research note released on Tuesday morning,Benzinga reports. The brokerage currently has a neutral rating on the restaurant operator’s stock.

A number of other research firms have also recently commented on ARCO. Wall Street Zen cut shares of Arcos Dorados from a “buy” rating to a “hold” rating in a research note on Saturday, October 25th. Zacks Research downgraded shares of Arcos Dorados from a “hold” rating to a “strong sell” rating in a research note on Thursday, October 23rd. Finally, Weiss Ratings lowered shares of Arcos Dorados from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, October 8th. One research analyst has rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Arcos Dorados has an average rating of “Sell” and an average target price of $8.70.

Arcos Dorados Stock Down 3.4%

Shares of ARCO stock opened at $7.34 on Tuesday. The stock’s fifty day moving average price is $7.00 and its 200 day moving average price is $7.26. Arcos Dorados has a 1-year low of $6.51 and a 1-year high of $8.88. The company has a market cap of $1.55 billion, a price-to-earnings ratio of 11.64, a price-to-earnings-growth ratio of 3.46 and a beta of 0.60. The company has a debt-to-equity ratio of 1.62, a current ratio of 0.80 and a quick ratio of 0.73.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings results on Wednesday, November 12th. The restaurant operator reported $0.12 EPS for the quarter, beating analysts’ consensus estimates of $0.10 by $0.02. Arcos Dorados had a return on equity of 24.54% and a net margin of 2.89%.The company had revenue of $1.19 billion during the quarter, compared to analysts’ expectations of $1.28 billion. During the same period last year, the business posted $0.17 earnings per share. The firm’s revenue was up 5.2% compared to the same quarter last year. On average, research analysts expect that Arcos Dorados will post 0.63 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Lazard Asset Management LLC acquired a new position in Arcos Dorados during the second quarter valued at $117,349,000. Pzena Investment Management LLC lifted its holdings in shares of Arcos Dorados by 74.9% in the 3rd quarter. Pzena Investment Management LLC now owns 11,427,294 shares of the restaurant operator’s stock valued at $77,134,000 after buying an additional 4,893,812 shares during the period. Nuveen LLC purchased a new stake in shares of Arcos Dorados in the first quarter worth about $79,583,000. SPX Gestao de Recursos Ltda grew its holdings in Arcos Dorados by 39.9% during the third quarter. SPX Gestao de Recursos Ltda now owns 6,342,621 shares of the restaurant operator’s stock worth $42,813,000 after acquiring an additional 1,808,125 shares during the period. Finally, Franklin Resources Inc. grew its holdings in Arcos Dorados by 50.9% during the second quarter. Franklin Resources Inc. now owns 3,907,929 shares of the restaurant operator’s stock worth $30,834,000 after acquiring an additional 1,319,031 shares during the period. Hedge funds and other institutional investors own 55.91% of the company’s stock.

Arcos Dorados Company Profile

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.