Arcos Dorados Holdings Inc. (NYSE:ARCO) Stock Has Average Price Target of $9.75 According to Analysts

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) have received a consensus recommendation of “Moderate Buy” from the six brokerages that are currently covering the stock, MarketBeat reports. Two analysts have rated the stock with a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $9.75.

Several equities research analysts have weighed in on the company. Weiss Ratings upgraded Arcos Dorados from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, October 8th. Bank of America downgraded shares of Arcos Dorados from a “buy” rating to a “neutral” rating and set a $9.00 target price on the stock. in a research report on Monday, October 26th. JPMorgan Chase & Co. raised shares of Arcos Dorados from a “neutral” rating to an “overweight” rating and raised their target price for the company from $9.00 to $10.50 in a research report on Friday, July 17th. Zacks Research raised shares of Arcos Dorados from a “hold” rating to a “strong-buy” rating in a report on Tuesday, October 20th. Finally, Wall Street Zen upgraded Arcos Dorados from a “hold” rating to a “buy” rating in a report on Saturday.

Institutional Investors Weigh In On Arcos Dorados

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Sei Investments Co. grew its holdings in Arcos Dorados by 132.8% in the first quarter. Sei Investments Co. now owns 3,483,732 shares of the restaurant operator’s stock worth $28,741,000 after purchasing an additional 1,987,271 shares during the last quarter. Lazard Asset Management LLC boosted its position in shares of Arcos Dorados by 7.9% in the 1st quarter. Lazard Asset Management LLC now owns 23,174,841 shares of the restaurant operator’s stock worth $191,192,000 after purchasing an additional 1,703,169 shares in the last quarter. Globeflex Capital L P acquired a new stake in shares of Arcos Dorados in the 2nd quarter worth $6,574,000. Moerus Capital Management LLC grew its stake in Arcos Dorados by 19.9% during the 1st quarter. Moerus Capital Management LLC now owns 4,263,589 shares of the restaurant operator’s stock worth $35,175,000 after buying an additional 706,683 shares during the last quarter. Finally, ABS Direct Equity Fund LLC purchased a new position in Arcos Dorados during the 1st quarter worth $907,000. Hedge funds and other institutional investors own 55.91% of the company’s stock.

Arcos Dorados Stock Up 1.1%

Shares of ARCO opened at $7.05 on Thursday. The firm has a fifty day moving average price of $7.60 and a 200-day moving average price of $8.18. The company has a current ratio of 0.88, a quick ratio of 0.81 and a debt-to-equity ratio of 1.14. The firm has a market capitalization of $1.49 billion, a P/E ratio of 5.78 and a beta of 0.54. Arcos Dorados has a 12-month low of $6.67 and a 12-month high of $9.75.

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

About Arcos Dorados

Arcos Dorados Holdings operates McDonald’s restaurants in Latin America and the Caribbean under a master franchise agreement. It is the largest independent McDonald’s franchisee in the world by restaurant count, with operations across 20 countries and territories in the region.

The company’s restaurants serve McDonald’s menu items, including burgers, fries, chicken, breakfast foods, desserts and beverages. Its services also include McCafé offerings, delivery and digital ordering through channels such as mobile apps and kiosks.

Arcos Dorados was formed in 2007 when McDonald’s separated its Latin American and Caribbean operations into a regional franchise business.