Arcos Dorados (NYSE:ARCO) Rating Lowered to Neutral at Bank of America

Arcos Dorados (NYSE:ARCO) was downgraded by Bank of America from a “buy” rating to a “neutral” rating in a report issued on Monday, Briefing.com reports. They presently have a $9.00 price objective on the restaurant operator’s stock. Bank of America‘s target price points to a potential upside of 11.32% from the company’s current price.

Several other research analysts also recently issued reports on ARCO. Weiss Ratings upgraded shares of Arcos Dorados from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. JPMorgan Chase & Co. raised shares of Arcos Dorados from a “neutral” rating to an “overweight” rating and raised their price target for the company from $9.00 to $10.50 in a research report on Friday, July 17th. Wall Street Zen downgraded shares of Arcos Dorados from a “buy” rating to a “hold” rating in a research report on Saturday, October 10th. Finally, Zacks Research upgraded shares of Arcos Dorados from a “hold” rating to a “strong-buy” rating in a report on Tuesday, October 20th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $9.75.

Arcos Dorados Stock Performance

Shares of ARCO stock opened at $8.09 on Monday. Arcos Dorados has a one year low of $6.67 and a one year high of $9.75. The company’s 50-day moving average is $7.83 and its 200 day moving average is $8.26. The company has a market capitalization of $1.70 billion, a price-to-earnings ratio of 6.63 and a beta of 0.48. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.81 and a current ratio of 0.88.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings data on Friday, August 14th. The restaurant operator reported $0.22 earnings per share for the quarter, beating analysts’ consensus estimates of $0.15 by $0.07. The business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.28 billion. Arcos Dorados had a net margin of 5.15% and a return on equity of 12.50%. Sell-side analysts expect that Arcos Dorados will post 0.80 EPS for the current fiscal year.

Institutional Investors Weigh In On Arcos Dorados

Institutional investors have recently modified their holdings of the business. Lazard Asset Management LLC raised its position in Arcos Dorados by 7.9% in the 1st 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 during the last quarter. Moerus Capital Management LLC lifted its stake in Arcos Dorados by 19.9% during 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 during the period. Pzena Investment Management LLC lifted its stake in Arcos Dorados by 1.7% during the 1st quarter. Pzena Investment Management LLC now owns 10,741,166 shares of the restaurant operator’s stock valued at $88,615,000 after acquiring an additional 178,602 shares during the period. Sei Investments Co. lifted its stake in Arcos Dorados by 132.8% during the 1st quarter. Sei Investments Co. now owns 3,483,732 shares of the restaurant operator’s stock valued at $28,741,000 after acquiring an additional 1,987,271 shares during the period. Finally, Globeflex Capital L P bought a new position in Arcos Dorados during the 2nd quarter valued at about $6,574,000. 55.91% of the stock is owned by hedge funds and other institutional investors.

About Arcos Dorados

Arcos Dorados Holdings Inc (NYSE: ARCO) is the largest independent McDonald’s franchisee in the world. The company operates and franchises McDonald’s restaurants across Latin America and the Caribbean under a master franchise agreement with McDonald’s Corporation.

Its restaurants offer McDonald’s products, including hamburgers, chicken items, french fries, breakfast products, beverages, desserts and other menu offerings. Arcos Dorados also provides services such as McCafé, McDelivery, digital ordering and drive-thru operations, depending on the market.

Headquartered in Buenos Aires, Argentina, Arcos Dorados serves customers in approximately 20 countries and territories, including Argentina, Brazil, Chile, Colombia, Mexico, Peru, Puerto Rico, Uruguay and Venezuela.