Brokerages Set Arcos Dorados Holdings Inc. (NYSE:ARCO) Target Price at $10.50

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

ARCO has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. upgraded Arcos Dorados from a “neutral” rating to an “overweight” rating and increased their price objective for the company from $9.00 to $10.50 in a report on Friday, July 17th. Weiss Ratings cut Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 29th. Wall Street Zen raised Arcos Dorados from a “hold” rating to a “buy” rating in a report on Saturday, May 23rd. Finally, Zacks Research lowered shares of Arcos Dorados from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 10th.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Lazard Asset Management LLC raised its stake in Arcos Dorados by 7.9% during the 1st quarter. Lazard Asset Management LLC now owns 23,174,841 shares of the restaurant operator’s stock worth $191,192,000 after acquiring an additional 1,703,169 shares in the last quarter. Pzena Investment Management LLC boosted its stake in Arcos Dorados by 1.7% in the first quarter. Pzena Investment Management LLC now owns 10,741,166 shares of the restaurant operator’s stock valued at $88,615,000 after acquiring an additional 178,602 shares in the last quarter. SPX Gestao de Recursos Ltda boosted its stake in Arcos Dorados by 19.1% in the fourth quarter. SPX Gestao de Recursos Ltda now owns 7,551,676 shares of the restaurant operator’s stock valued at $55,429,000 after acquiring an additional 1,209,055 shares in the last quarter. Moerus Capital Management LLC grew its holdings in shares of Arcos Dorados by 19.9% during the first quarter. Moerus Capital Management LLC now owns 4,263,589 shares of the restaurant operator’s stock worth $35,175,000 after purchasing an additional 706,683 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Arcos Dorados by 3.1% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,508,707 shares of the restaurant operator’s stock worth $27,684,000 after purchasing an additional 105,972 shares during the last quarter. 55.91% of the stock is owned by hedge funds and other institutional investors.

Arcos Dorados Stock Performance

Shares of ARCO stock opened at $8.00 on Friday. The company has a current ratio of 0.88, a quick ratio of 0.81 and a debt-to-equity ratio of 1.14. The firm has a fifty day moving average price of $8.16 and a 200 day moving average price of $8.39. The company has a market cap of $1.69 billion, a P/E ratio of 6.56 and a beta of 0.48. Arcos Dorados has a 12 month low of $6.54 and a 12 month high of $9.75.

Arcos Dorados (NYSE:ARCO) last posted its quarterly earnings results on Friday, August 14th. The restaurant operator reported $0.22 earnings per share for the quarter, beating analysts’ consensus estimates of $0.15 by $0.07. The company had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.28 billion. Arcos Dorados had a return on equity of 12.50% and a net margin of 5.15%. Sell-side analysts predict that Arcos Dorados will post 0.77 earnings per share for the current fiscal year.

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.