Arcos Dorados Holdings Inc. (NYSE:ARCO) Receives $10.50 Average Target Price from Brokerages

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) have been given an average recommendation of “Moderate Buy” by the five brokerages that are presently covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 12-month price target among analysts that have covered the stock in the last year is $10.50.

Several brokerages have recently issued reports on ARCO. Zacks Research downgraded Arcos Dorados from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 10th. Weiss Ratings cut Arcos Dorados from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, September 14th. Finally, JPMorgan Chase & Co. upgraded Arcos Dorados from a “neutral” rating to an “overweight” rating and increased their target price for the company from $9.00 to $10.50 in a research note on Friday, July 17th.

Arcos Dorados Trading Up 0.1%

NYSE:ARCO opened at $7.54 on Wednesday. Arcos Dorados has a 12 month low of $6.54 and a 12 month high of $9.75. The firm has a market cap of $1.59 billion, a price-to-earnings ratio of 6.18 and a beta of 0.49. 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 company’s 50 day moving average is $8.09 and its 200-day moving average is $8.32.

Arcos Dorados (NYSE:ARCO) last posted its quarterly earnings data on Friday, August 14th. The restaurant operator reported $0.22 earnings per share (EPS) 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 business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.28 billion. Equities analysts anticipate that Arcos Dorados will post 0.79 EPS for the current year.

Institutional Investors Weigh In On Arcos Dorados

Several hedge funds have recently modified their holdings of the business. Sei Investments Co. increased its holdings in shares of Arcos Dorados by 132.8% during the 1st 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 period. Lazard Asset Management LLC grew its position in Arcos Dorados by 7.9% during the first quarter. Lazard Asset Management LLC now owns 23,174,841 shares of the restaurant operator’s stock worth $191,192,000 after buying an additional 1,703,169 shares in the last quarter. Brightlight Capital Management LP increased its stake in Arcos Dorados by 55.2% during the fourth quarter. Brightlight Capital Management LP now owns 3,466,800 shares of the restaurant operator’s stock valued at $25,446,000 after acquiring an additional 1,232,800 shares during the period. Globeflex Capital L P acquired a new position in Arcos Dorados in the 2nd quarter valued at approximately $6,574,000. Finally, Moerus Capital Management LLC raised its holdings in Arcos Dorados by 19.9% in the 1st quarter. Moerus Capital Management LLC now owns 4,263,589 shares of the restaurant operator’s stock valued at $35,175,000 after acquiring an additional 706,683 shares in the last quarter. 55.91% of the stock is owned by institutional investors.

About Arcos Dorados

Arcos Dorados Holdings Inc is the largest independent McDonald’s franchisee in the world and operates McDonald’s restaurants across Latin America and the Caribbean. The company holds the exclusive right to own, operate and franchise McDonald’s restaurants in numerous markets throughout the region.

Its restaurants offer McDonald’s core menu of hamburgers, cheeseburgers, chicken products, french fries, breakfast items, beverages and desserts, along with regionally adapted products. Arcos Dorados also serves customers through drive-thru locations, delivery, mobile ordering and other digital channels.

Arcos Dorados was established in 2007 following the acquisition of McDonald’s operations in Latin America from McDonald’s Corporation.