Arcos Dorados (NYSE:ARCO) Stock Rating Upgraded by Zacks Research

Arcos Dorados (NYSE:ARCO) was upgraded by equities researchers at Zacks Research from a “hold” rating to a “strong-buy” rating in a report issued on Tuesday, Zacks reports.

Several other research analysts have also recently weighed in on the stock. JPMorgan Chase & Co. upgraded shares of Arcos Dorados from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $9.00 to $10.50 in a research report on Friday, July 17th. Wall Street Zen lowered shares of Arcos Dorados from a “buy” rating to a “hold” rating in a research report on Saturday, October 10th. Finally, Weiss Ratings upgraded shares of Arcos Dorados from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus target price of $10.50.

Arcos Dorados Price Performance

Shares of NYSE ARCO opened at $8.10 on Tuesday. The firm has a market capitalization of $1.71 billion, a P/E ratio of 6.64 and a beta of 0.48. The company has a quick ratio of 0.81, a current ratio of 0.88 and a debt-to-equity ratio of 1.14. The stock’s 50-day simple moving average is $7.83 and its two-hundred day simple moving average is $8.26. Arcos Dorados has a twelve month low of $6.67 and a twelve month high of $9.75.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings results on Friday, August 14th. The restaurant operator reported $0.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.15 by $0.07. The firm had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.28 billion. Arcos Dorados had a return on equity of 12.50% and a net margin of 5.15%. As a group, equities analysts anticipate that Arcos Dorados will post 0.80 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. NewEdge Wealth LLC raised its position in Arcos Dorados by 13.2% during the first quarter. NewEdge Wealth LLC now owns 20,289 shares of the restaurant operator’s stock valued at $167,000 after purchasing an additional 2,360 shares in the last quarter. Confluence Investment Management LLC lifted its stake in Arcos Dorados by 21.0% during the second quarter. Confluence Investment Management LLC now owns 21,798 shares of the restaurant operator’s stock worth $176,000 after purchasing an additional 3,783 shares during the last quarter. Public Employees Retirement System of Ohio purchased a new position in shares of Arcos Dorados in the 2nd quarter worth about $31,000. FNY Investment Advisers LLC purchased a new position in shares of Arcos Dorados in the 2nd quarter worth about $40,000. Finally, DGS Capital Management LLC boosted its holdings in shares of Arcos Dorados by 50.6% in the 1st quarter. DGS Capital Management LLC now owns 20,300 shares of the restaurant operator’s stock worth $167,000 after purchasing an additional 6,819 shares in the last quarter. Institutional investors own 55.91% of the company’s stock.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc (NYSE: ARCO) is the largest independent McDonald’s franchisee in the world. The company operates and franchises McDonald’s restaurants across Latin America and the Caribbean under a master franchise agreement with McDonald’s Corporation.

Its restaurants offer McDonald’s products, including hamburgers, chicken items, french fries, breakfast products, beverages, desserts and other menu offerings. Arcos Dorados also provides services such as McCafé, McDelivery, digital ordering and drive-thru operations, depending on the market.

Headquartered in Buenos Aires, Argentina, Arcos Dorados serves customers in approximately 20 countries and territories, including Argentina, Brazil, Chile, Colombia, Mexico, Peru, Puerto Rico, Uruguay and Venezuela.