Arcos Dorados (NYSE:ARCO) Stock Rating Lowered by Wall Street Zen

Arcos Dorados (NYSE:ARCO) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday.

Several other brokerages have also issued reports on ARCO. JPMorgan Chase & Co. lowered shares of Arcos Dorados from an “overweight” rating to a “neutral” rating and cut their target price for the company from $10.50 to $8.80 in a research report on Wednesday, July 2nd. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Arcos Dorados in a report on Friday. One equities research analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Sell” and an average price target of $8.80.

Arcos Dorados Stock Performance

Shares of NYSE ARCO opened at $7.21 on Friday. The firm has a 50 day moving average of $6.94 and a 200 day moving average of $7.27. The company has a current ratio of 0.80, a quick ratio of 0.73 and a debt-to-equity ratio of 1.62. The firm has a market capitalization of $1.52 billion, a price-to-earnings ratio of 11.44, a price-to-earnings-growth ratio of 3.37 and a beta of 0.60. Arcos Dorados has a 12-month low of $6.51 and a 12-month high of $9.33.

Arcos Dorados (NYSE:ARCO) last announced its earnings results on Wednesday, August 13th. The restaurant operator reported $0.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.06. The company had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.22 billion. Arcos Dorados had a net margin of 2.89% and a return on equity of 24.54%. The firm’s quarterly revenue was up 2.8% compared to the same quarter last year. During the same period in the previous year, the business posted $0.13 earnings per share. On average, research analysts anticipate that Arcos Dorados will post 0.63 earnings per share for the current year.

Hedge Funds Weigh In On Arcos Dorados

Several hedge funds have recently modified their holdings of ARCO. Lazard Asset Management LLC purchased a new position in shares of Arcos Dorados in the second quarter worth $117,349,000. Nuveen LLC purchased a new position in shares of Arcos Dorados in the first quarter worth $79,583,000. Pzena Investment Management LLC purchased a new position in shares of Arcos Dorados in the second quarter worth $51,549,000. Fourth Sail Capital LP purchased a new position in shares of Arcos Dorados in the first quarter worth $26,746,000. Finally, Brightlight Capital Management LP purchased a new position in shares of Arcos Dorados in the second quarter worth $14,972,000. Hedge funds and other institutional investors own 55.91% 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, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S.