Arcos Dorados (NYSE:ARCO) Downgraded to Hold Rating by Zacks Research

Zacks Research cut shares of Arcos Dorados (NYSE:ARCO) from a strong-buy rating to a hold rating in a research report report published on Monday,Zacks.com reports.

ARCO has been the topic of a number of other reports. Wall Street Zen upgraded shares of Arcos Dorados from a “hold” rating to a “buy” rating in a report on Saturday, May 23rd. JPMorgan Chase & Co. upgraded shares of Arcos Dorados from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $9.00 to $10.50 in a report on Friday, July 17th. Santander raised shares of Arcos Dorados to an “outperform” rating in a research report on Monday, April 20th. Finally, Weiss Ratings downgraded shares of Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 29th. Three equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $10.50.

Arcos Dorados Stock Performance

Arcos Dorados stock opened at $7.91 on Monday. Arcos Dorados has a fifty-two week low of $6.54 and a fifty-two week high of $9.75. The company has a market capitalization of $1.67 billion, a price-to-earnings ratio of 7.12 and a beta of 0.48. The stock has a fifty day moving average of $8.30 and a two-hundred day moving average of $8.42. The company has a debt-to-equity ratio of 1.25, a quick ratio of 0.73 and a current ratio of 0.80.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings data on Thursday, May 21st. The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.06. The business had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.21 billion. Arcos Dorados had a return on equity of 10.47% and a net margin of 4.86%.The business’s revenue was up 12.9% on a year-over-year basis. During the same period in the prior year, the business earned $0.07 earnings per share. On average, analysts anticipate that Arcos Dorados will post 0.76 EPS for the current fiscal year.

Hedge Funds Weigh In On Arcos Dorados

Large investors have recently added to or reduced their stakes in the business. Lazard Asset Management LLC boosted its holdings in shares of Arcos Dorados by 35.3% in the 3rd quarter. Lazard Asset Management LLC now owns 20,128,477 shares of the restaurant operator’s stock valued at $135,867,000 after purchasing an additional 5,255,199 shares during the last quarter. Sei Investments Co. grew its stake 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 valued at $28,741,000 after buying an additional 1,987,271 shares during the period. Brightlight Capital Management LP increased its holdings in shares of Arcos Dorados by 55.2% during the 4th quarter. Brightlight Capital Management LP now owns 3,466,800 shares of the restaurant operator’s stock worth $25,446,000 after buying an additional 1,232,800 shares during the last quarter. SPX Gestao de Recursos Ltda increased its holdings in shares of Arcos Dorados by 19.1% during the 4th quarter. SPX Gestao de Recursos Ltda now owns 7,551,676 shares of the restaurant operator’s stock worth $55,429,000 after buying an additional 1,209,055 shares during the last quarter. Finally, Renaissance Technologies LLC raised its position in shares of Arcos Dorados by 312.7% in the 4th quarter. Renaissance Technologies LLC now owns 1,049,734 shares of the restaurant operator’s stock worth $7,705,000 after buying an additional 795,400 shares during the period. 55.91% of the stock is currently owned by hedge funds and other institutional investors.

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.