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

Arcos Dorados Holdings Inc. (NYSE:ARCO) has been given an average rating of “Moderate Buy” by the five brokerages that are currently covering the firm, Marketbeat reports. Two analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1-year price target among brokerages that have covered the stock in the last year is $10.50.

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

Arcos Dorados Stock Up 1.9%

Shares of NYSE:ARCO opened at $8.05 on Friday. The company has a market capitalization of $1.70 billion, a price-to-earnings ratio of 6.60 and a beta of 0.48. Arcos Dorados has a 12-month low of $6.67 and a 12-month high of $9.75. The business has a 50-day moving average price of $7.83 and a 200 day moving average price of $8.27. 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 (NYSE:ARCO) last posted its earnings results on Friday, August 14th. The restaurant operator reported $0.22 EPS 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 net margin of 5.15% and a return on equity of 12.50%. Sell-side analysts expect that Arcos Dorados will post 0.79 EPS for the current year.

Institutional Trading of Arcos Dorados

Large investors have recently modified their holdings of the stock. Lazard Asset Management LLC raised its stake in shares of Arcos Dorados by 7.9% in the first quarter. Lazard Asset Management LLC now owns 23,174,841 shares of the restaurant operator’s stock valued at $191,192,000 after acquiring an additional 1,703,169 shares in the last quarter. Pzena Investment Management LLC grew its stake in Arcos Dorados by 1.7% during the 1st quarter. Pzena Investment Management LLC now owns 10,741,166 shares of the restaurant operator’s stock worth $88,615,000 after purchasing an additional 178,602 shares in the last quarter. Moerus Capital Management LLC grew its stake in Arcos Dorados by 19.9% during the 1st 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 in the last quarter. Sei Investments Co. grew its stake in Arcos Dorados by 132.8% during the 1st quarter. Sei Investments Co. now owns 3,483,732 shares of the restaurant operator’s stock worth $28,741,000 after purchasing an additional 1,987,271 shares in the last quarter. Finally, Brightlight Capital Management LP increased its holdings in 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 purchasing an additional 1,232,800 shares during the period. Hedge funds and other institutional investors own 55.91% of the company’s stock.

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.