Arcos Dorados Holdings Inc. (NYSE:ARCO) Receives Average Recommendation of “Buy” from Analysts

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCOGet Rating) have been given a consensus rating of “Buy” by the eight analysts that are covering the company, Marketbeat Ratings reports. One research analyst has rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $8.13.

Several research analysts recently issued reports on the company. Zacks Investment Research raised Arcos Dorados from a “hold” rating to a “buy” rating and set a $5.75 price objective on the stock in a research note on Tuesday, December 21st. The Goldman Sachs Group upgraded Arcos Dorados from a “neutral” rating to a “buy” rating and upped their target price for the stock from $6.00 to $7.00 in a report on Tuesday, January 18th. StockNews.com lowered Arcos Dorados from a “strong-buy” rating to a “buy” rating in a report on Saturday, April 9th. Credit Suisse Group upgraded Arcos Dorados from a “neutral” rating to an “outperform” rating and set a $9.50 target price for the company in a report on Wednesday, February 23rd. Finally, HSBC lowered Arcos Dorados from a “buy” rating to a “hold” rating and set a $8.00 target price for the company. in a report on Monday, April 4th.

Several institutional investors and hedge funds have recently modified their holdings of ARCO. Citadel Advisors LLC lifted its holdings in shares of Arcos Dorados by 617.7% during the 2nd quarter. Citadel Advisors LLC now owns 11,213 shares of the restaurant operator’s stock valued at $67,000 after purchasing an additional 13,379 shares during the last quarter. Wells Fargo & Company MN lifted its holdings in shares of Arcos Dorados by 798.7% during the 2nd quarter. Wells Fargo & Company MN now owns 104,236 shares of the restaurant operator’s stock valued at $623,000 after purchasing an additional 92,637 shares during the last quarter. Morgan Stanley lifted its holdings in shares of Arcos Dorados by 3.7% during the 2nd quarter. Morgan Stanley now owns 3,186,085 shares of the restaurant operator’s stock valued at $19,022,000 after purchasing an additional 112,256 shares during the last quarter. Parametric Portfolio Associates LLC lifted its holdings in shares of Arcos Dorados by 86.3% during the 2nd quarter. Parametric Portfolio Associates LLC now owns 85,380 shares of the restaurant operator’s stock valued at $510,000 after purchasing an additional 39,545 shares during the last quarter. Finally, Virginia Retirement Systems ET AL lifted its holdings in shares of Arcos Dorados by 181.8% during the 3rd quarter. Virginia Retirement Systems ET AL now owns 30,932 shares of the restaurant operator’s stock valued at $158,000 after purchasing an additional 19,956 shares during the last quarter. Hedge funds and other institutional investors own 40.48% of the company’s stock.

Shares of NYSE:ARCO opened at $7.95 on Thursday. Arcos Dorados has a 52-week low of $4.33 and a 52-week high of $8.44. The stock has a market cap of $1.67 billion, a P/E ratio of 35.82, a price-to-earnings-growth ratio of 0.63 and a beta of 1.23. The business’s 50 day moving average is $7.56 and its 200 day moving average is $6.08. The company has a quick ratio of 0.81, a current ratio of 0.87 and a debt-to-equity ratio of 3.34.

Arcos Dorados (NYSE:ARCOGet Rating) last announced its quarterly earnings data on Wednesday, March 16th. The restaurant operator reported $0.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.16. Arcos Dorados had a return on equity of 26.35% and a net margin of 1.77%. The company had revenue of $777.13 million for the quarter, compared to analysts’ expectations of $767.51 million. During the same quarter in the prior year, the firm earned $0.11 earnings per share. On average, sell-side analysts anticipate that Arcos Dorados will post 0.39 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, December 30th. Stockholders of record on Monday, December 26th will be issued a dividend of $0.03 per share. The ex-dividend date is Thursday, December 22nd. This represents a $0.12 annualized dividend and a dividend yield of 1.51%. Arcos Dorados’s dividend payout ratio is presently 72.08%.

About Arcos Dorados (Get Rating)

Arcos Dorados Holdings Inc operates as a franchisee of McDonald's restaurants. The company 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.

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Analyst Recommendations for Arcos Dorados (NYSE:ARCO)

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