Arcos Dorados Holdings Inc. (NYSE:ARCO) Stock Has Consensus Target Price of $10.50 According to Brokerages

Arcos Dorados Holdings Inc. (NYSE:ARCO) has received an average recommendation of “Moderate Buy” from the five brokerages that are covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $10.50.

Several equities analysts have issued reports on ARCO shares. Wall Street Zen downgraded Arcos Dorados from a “buy” rating to a “hold” rating in a research report on Saturday, October 10th. Zacks Research cut Arcos Dorados from a “strong-buy” rating to a “hold” rating in a report on Monday, August 10th. JPMorgan Chase & Co. upgraded Arcos Dorados from a “neutral” rating to an “overweight” rating and increased their target price for the stock from $9.00 to $10.50 in a report on Friday, July 17th. Finally, Weiss Ratings upgraded Arcos Dorados from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio acquired a new stake in Arcos Dorados in the 2nd quarter valued at about $31,000. FNY Investment Advisers LLC bought a new position in shares of Arcos Dorados in the second quarter worth about $40,000. Squarepoint Ops LLC acquired a new position in shares of Arcos Dorados during the second quarter worth approximately $81,000. Baird Financial Group Inc. acquired a new position in shares of Arcos Dorados during the second quarter worth approximately $87,000. Finally, DGS Capital Management LLC lifted its position in shares of Arcos Dorados by 10.6% during the fourth quarter. DGS Capital Management LLC now owns 13,481 shares of the restaurant operator’s stock worth $99,000 after purchasing an additional 1,290 shares in the last quarter. Institutional investors and hedge funds own 55.91% of the company’s stock.

Arcos Dorados Stock Performance

NYSE:ARCO opened at $7.96 on Friday. The stock has a market capitalization of $1.68 billion, a P/E ratio of 6.52 and a beta of 0.48. The company has a current ratio of 0.88, a quick ratio of 0.81 and a debt-to-equity ratio of 1.14. Arcos Dorados has a 1 year low of $6.67 and a 1 year high of $9.75. The firm has a 50 day moving average of $7.82 and a 200-day moving average of $8.27.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings results on Friday, August 14th. The restaurant operator reported $0.22 EPS for the quarter, topping analysts’ consensus estimates of $0.15 by $0.07. Arcos Dorados had a return on equity of 12.50% and a net margin of 5.15%. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.28 billion. As a group, sell-side analysts anticipate that Arcos Dorados will post 0.79 EPS for the current fiscal year.

About Arcos Dorados

Arcos Dorados Holdings Inc is the largest independent McDonald’s franchisee in the world and the exclusive master franchisee for McDonald’s in Latin America and the Caribbean. The company operates and franchises McDonald’s restaurants across 20 countries and territories, serving customers through company-operated and franchised locations.

Its restaurant business offers McDonald’s products including hamburgers, chicken sandwiches, French fries, breakfast items, desserts, soft drinks and McCafé beverages.