Brokerages Set Arcos Dorados Holdings Inc. (NYSE:ARCO) PT at $10.50

Arcos Dorados Holdings Inc. (NYSE:ARCO) has been assigned a consensus recommendation of “Buy” from the five analysts that are presently covering the stock, MarketBeat reports. One equities research analyst has rated the stock with a hold recommendation, three have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $10.50.

A number of brokerages have issued reports on ARCO. Santander upgraded shares of Arcos Dorados to an “outperform” rating in a research report on Monday, April 20th. The Goldman Sachs Group reiterated a “buy” rating on shares of Arcos Dorados in a research report on Wednesday, April 8th. Zacks Research upgraded Arcos Dorados from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 10th. JPMorgan Chase & Co. raised Arcos Dorados from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $9.00 to $10.50 in a research report on Friday, July 17th. Finally, Weiss Ratings lowered Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 29th.

Arcos Dorados Stock Performance

NYSE:ARCO opened at $8.18 on Tuesday. Arcos Dorados has a 1-year low of $6.51 and a 1-year high of $9.75. The company has a current ratio of 0.80, a quick ratio of 0.73 and a debt-to-equity ratio of 1.25. The stock has a market cap of $1.72 billion, a P/E ratio of 7.36 and a beta of 0.48. The stock has a 50 day simple moving average of $8.38 and a 200 day simple moving average of $8.38.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings results on Thursday, May 21st. The restaurant operator reported $0.17 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.06. Arcos Dorados had a net margin of 4.86% and a return on equity of 10.47%. The business had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.21 billion. During the same period last year, the firm earned $0.07 earnings per share. Arcos Dorados’s revenue for the quarter was up 12.9% compared to the same quarter last year. Research analysts anticipate that Arcos Dorados will post 0.76 earnings per share for the current year.

Institutional Investors Weigh In On Arcos Dorados

Several institutional investors and hedge funds have recently bought and sold shares of the company. FNY Investment Advisers LLC acquired a new stake in Arcos Dorados during the second quarter worth about $40,000. Confluence Investment Management LLC raised its position in shares of Arcos Dorados by 21.0% in the 2nd quarter. Confluence Investment Management LLC now owns 21,798 shares of the restaurant operator’s stock valued at $176,000 after buying an additional 3,783 shares in the last quarter. Bank of America Corp DE raised its position in shares of Arcos Dorados by 1.7% in the 1st quarter. Bank of America Corp DE now owns 537,449 shares of the restaurant operator’s stock valued at $4,434,000 after buying an additional 9,046 shares in the last quarter. Clough Capital Partners L P lifted its holdings in shares of Arcos Dorados by 8.2% during the 1st quarter. Clough Capital Partners L P now owns 159,410 shares of the restaurant operator’s stock worth $1,315,000 after acquiring an additional 12,116 shares during the period. Finally, Lazard Asset Management LLC lifted its holdings in shares of Arcos Dorados by 7.9% during the 1st quarter. Lazard Asset Management LLC now owns 23,174,841 shares of the restaurant operator’s stock worth $191,192,000 after acquiring an additional 1,703,169 shares during the period. Institutional investors own 55.91% of the company’s stock.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc is the largest independent McDonald’s franchisee in the world, operating under an exclusive license agreement with McDonald’s Corporation. The company develops, owns and operates quick-service restaurants, offering the full McDonald’s menu, including hamburgers, chicken sandwiches, salads, sides, desserts and McCafé beverages. In addition to restaurant operations, Arcos Dorados manages supply chain logistics, property development, training and support services for its franchise network.

Headquartered in Montevideo, Uruguay, Arcos Dorados serves 20 markets across Latin America and the Caribbean, including Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico and Uruguay.