Arcos Dorados (NYSE:ARCO) Upgraded to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Arcos Dorados (NYSE:ARCO) from a hold rating to a buy rating in a research note published on Saturday.

A number of other equities analysts also recently commented on ARCO. Weiss Ratings downgraded Arcos Dorados from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, October 8th. Zacks Research cut shares of Arcos Dorados from a “hold” rating to a “strong sell” rating in a report on Thursday, October 23rd. Finally, JPMorgan Chase & Co. reduced their price objective on shares of Arcos Dorados from $8.80 to $8.70 and set a “neutral” rating on the stock in a report on Tuesday, November 11th. One investment analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Arcos Dorados currently has a consensus rating of “Sell” and an average target price of $8.70.

Arcos Dorados Stock Down 0.5%

Shares of NYSE:ARCO opened at $7.30 on Friday. The business has a 50-day moving average price of $7.01 and a 200 day moving average price of $7.25. 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 company has a market capitalization of $1.54 billion, a price-to-earnings ratio of 11.58, a PEG ratio of 3.46 and a beta of 0.60. Arcos Dorados has a 12-month low of $6.51 and a 12-month high of $8.88.

Arcos Dorados (NYSE:ARCO) last posted its earnings results on Wednesday, November 12th. The restaurant operator reported $0.12 EPS for the quarter, beating analysts’ consensus estimates of $0.10 by $0.02. Arcos Dorados had a net margin of 2.89% and a return on equity of 24.54%. The company had revenue of $1.19 billion for the quarter, compared to analysts’ expectations of $1.28 billion. During the same quarter in the prior year, the company posted $0.17 earnings per share. Arcos Dorados’s revenue for the quarter was up 5.2% compared to the same quarter last year. Sell-side analysts expect that Arcos Dorados will post 0.63 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Itau Unibanco Holding S.A. acquired a new position in Arcos Dorados in the first quarter valued at $73,000. Tower Bridge Advisors purchased a new position in shares of Arcos Dorados during the third quarter worth about $75,000. Arkadios Wealth Advisors purchased a new position in shares of Arcos Dorados during the third quarter worth about $76,000. Virtu Financial LLC acquired a new position in Arcos Dorados in the 3rd quarter valued at about $87,000. Finally, R Squared Ltd raised its stake in Arcos Dorados by 60.3% during the 1st quarter. R Squared Ltd now owns 11,800 shares of the restaurant operator’s stock valued at $95,000 after acquiring an additional 4,440 shares during the last quarter. 55.91% of the stock is owned by hedge funds and other institutional investors.

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.