JPMorgan Chase & Co. Upgrades Arcos Dorados (NYSE:ARCO) to Overweight

Arcos Dorados (NYSE:ARCO) was upgraded by investment analysts at JPMorgan Chase & Co. from a “neutral” rating to an “overweight” rating in a research note issued to investors on Friday,Benzinga reports. The firm presently has a $10.50 price target on the restaurant operator’s stock, up from their prior price target of $9.00. JPMorgan Chase & Co.‘s price objective would indicate a potential upside of 24.29% from the company’s previous close.

A number of other research firms have also commented on ARCO. Zacks Research upgraded Arcos Dorados from a “hold” rating to a “strong-buy” rating in a research note on Friday, July 10th. The Goldman Sachs Group reiterated a “buy” rating on shares of Arcos Dorados in a research report on Wednesday, April 8th. Wall Street Zen raised Arcos Dorados from a “hold” rating to a “buy” rating in a report on Saturday, May 23rd. Santander upgraded Arcos Dorados to an “outperform” rating in a research report on Monday, April 20th. Finally, Weiss Ratings downgraded Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 29th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, Arcos Dorados currently has an average rating of “Buy” and an average price target of $10.50.

Arcos Dorados Stock Performance

Shares of NYSE:ARCO traded up $0.15 on Friday, reaching $8.45. 202,277 shares of the company’s stock were exchanged, compared to its average volume of 1,346,417. Arcos Dorados has a twelve month low of $6.51 and a twelve month high of $9.75. The company has a fifty day moving average of $8.45 and a 200-day moving average of $8.33. The company has a market capitalization of $1.78 billion, a price-to-earnings ratio of 7.59 and a beta of 0.48. The company has a current ratio of 0.80, a quick ratio of 0.73 and a debt-to-equity ratio of 1.25.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings results on Wednesday, May 20th. The restaurant operator reported $0.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.11 by $0.06. The company had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.21 billion. Arcos Dorados had a net margin of 4.86% and a return on equity of 10.47%. The firm’s quarterly revenue was up 12.9% on a year-over-year basis. During the same period in the previous year, the business earned $0.07 earnings per share. On average, research analysts predict that Arcos Dorados will post 0.73 EPS for the current fiscal year.

Hedge Funds Weigh In On Arcos Dorados

A number of institutional investors and hedge funds have recently bought and sold shares of ARCO. FNY Investment Advisers LLC bought a new position in Arcos Dorados in the second quarter valued at about $40,000. Global Retirement Partners LLC boosted its stake in shares of Arcos Dorados by 9,074.6% during the fourth quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator’s stock valued at $42,000 after purchasing an additional 5,717 shares in the last quarter. Quarry LP bought a new stake in shares of Arcos Dorados during the third quarter worth about $45,000. Aquatic Capital Management LLC bought a new stake in shares of Arcos Dorados during the third quarter worth about $53,000. Finally, Tudor Investment Corp ET AL bought a new stake in shares of Arcos Dorados during the third quarter worth about $73,000. Institutional investors and hedge funds 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.