JPMorgan Chase & Co. Issues Pessimistic Forecast for Arcos Dorados (NYSE:ARCO) Stock Price

Arcos Dorados (NYSE:ARCO) had its target price cut by JPMorgan Chase & Co. from $10.50 to $10.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The brokerage presently has an “overweight” rating on the restaurant operator’s stock. JPMorgan Chase & Co.‘s price target indicates a potential upside of 44.61% from the stock’s current price.

ARCO has been the topic of several other research reports. Weiss Ratings upgraded Arcos Dorados from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. Wall Street Zen raised shares of Arcos Dorados from a “hold” rating to a “buy” rating in a research report on Saturday. Zacks Research upgraded Arcos Dorados from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 20th. Finally, Bank of America cut shares of Arcos Dorados from a “buy” rating to a “neutral” rating and set a $9.00 target price on the stock. in a report on Monday, October 26th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $9.50.

Arcos Dorados Price Performance

Shares of Arcos Dorados stock traded down $0.14 during trading on Tuesday, hitting $6.92. 571,378 shares of the company’s stock traded hands, compared to its average volume of 1,427,521. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.88 and a quick ratio of 0.81. The firm’s fifty day moving average price is $7.60 and its 200 day moving average price is $8.18. The company has a market cap of $1.46 billion, a PE ratio of 5.68 and a beta of 0.54. 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 data on Friday, August 14th. The restaurant operator reported $0.22 earnings per share for the quarter, topping the consensus estimate of $0.15 by $0.07. Arcos Dorados had a net margin of 5.15% and a return on equity of 12.50%. The firm had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.28 billion. Analysts forecast that Arcos Dorados will post 0.80 earnings per share for the current year.

Institutional Investors Weigh In On Arcos Dorados

A number of hedge funds have recently added to or reduced their stakes in ARCO. Public Employees Retirement System of Ohio bought a new stake in shares of Arcos Dorados in the 2nd quarter worth approximately $31,000. FNY Investment Advisers LLC purchased a new position in Arcos Dorados during the 2nd quarter valued at about $40,000. Squarepoint Ops LLC bought a new stake in Arcos Dorados during the 2nd quarter worth approximately $81,000. Baird Financial Group Inc. bought a new position in shares of Arcos Dorados in the second quarter worth $87,000. Finally, Bank of Nova Scotia purchased a new stake in shares of Arcos Dorados in the 1st quarter valued at about $116,000. 55.91% of the stock is currently owned by institutional investors.

Arcos Dorados Company Profile

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.