Arcos Dorados (NYSE:ARCO) Downgraded by Zacks Investment Research to “Hold”

Arcos Dorados (NYSE:ARCOGet Rating) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Thursday, Zacks.com reports.

According to Zacks, “Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s with its operations divided in Brazil; North Latin America division; South Latin America and the Caribbean division. It also runs quick service restaurants in Latin America and the Caribbean. It has operations in territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. Arcos Dorados Holdings Inc. is headquartered in Buenos Aires, Argentina. “

A number of other brokerages have also recently weighed in on ARCO. Bank of America upgraded Arcos Dorados from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $7.80 to $10.00 in a research note on Thursday, March 24th. StockNews.com cut Arcos Dorados from a “strong-buy” rating to a “buy” rating in a research note on Thursday, May 12th. HSBC cut Arcos Dorados from a “buy” rating to a “hold” rating and set a $8.00 price objective for the company. in a research note on Monday, April 4th. Finally, Credit Suisse Group upgraded Arcos Dorados from a “neutral” rating to an “outperform” rating and set a $9.50 price objective for the company in a research note on Wednesday, February 23rd. Two equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Buy” and a consensus price target of $8.13.

ARCO stock traded up $0.11 during trading on Thursday, hitting $7.56. 85,874 shares of the company’s stock were exchanged, compared to its average volume of 1,159,057. The business has a 50-day moving average price of $7.59 and a two-hundred day moving average price of $6.59. The stock has a market capitalization of $1.59 billion, a price-to-earnings ratio of 15.75, a PEG ratio of 0.61 and a beta of 1.23. Arcos Dorados has a 52-week low of $4.33 and a 52-week high of $8.44. The company has a current ratio of 0.84, a quick ratio of 0.81 and a debt-to-equity ratio of 3.09.

Arcos Dorados (NYSE:ARCOGet Rating) last posted its earnings results on Wednesday, May 18th. The restaurant operator reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.07. The firm had revenue of $787.30 million during the quarter, compared to analysts’ expectations of $731.07 million. Arcos Dorados had a return on equity of 50.06% and a net margin of 3.45%. During the same quarter in the previous year, the business earned ($0.14) earnings per share. On average, equities research analysts anticipate that Arcos Dorados will post 0.4 earnings per share for the current fiscal year.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Quantbot Technologies LP lifted its stake in shares of Arcos Dorados by 509.8% in the first quarter. Quantbot Technologies LP now owns 47,497 shares of the restaurant operator’s stock valued at $386,000 after purchasing an additional 39,708 shares during the period. Dynamic Technology Lab Private Ltd lifted its stake in shares of Arcos Dorados by 55.7% in the first quarter. Dynamic Technology Lab Private Ltd now owns 26,582 shares of the restaurant operator’s stock valued at $216,000 after purchasing an additional 9,508 shares during the period. Emerging Variant Capital Management LP acquired a new stake in shares of Arcos Dorados in the first quarter valued at about $8,130,000. PDT Partners LLC lifted its stake in shares of Arcos Dorados by 43.5% in the first quarter. PDT Partners LLC now owns 150,946 shares of the restaurant operator’s stock valued at $1,227,000 after purchasing an additional 45,726 shares during the period. Finally, Wellington Management Group LLP lifted its stake in shares of Arcos Dorados by 12.3% in the first quarter. Wellington Management Group LLP now owns 142,647 shares of the restaurant operator’s stock valued at $1,159,000 after purchasing an additional 15,628 shares during the period. Hedge funds and other institutional investors own 35.41% of the company’s stock.

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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