Arcos Dorados (NYSE:ARCO) Reaches New 52-Week High – Here’s Why

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) reached a new 52-week high on Wednesday . The company traded as high as $8.95 and last traded at $8.90, with a volume of 2597766 shares trading hands. The stock had previously closed at $8.41.

Analyst Upgrades and Downgrades

ARCO has been the subject of several analyst reports. Weiss Ratings reissued a “hold (c-)” rating on shares of Arcos Dorados in a report on Monday, December 29th. Zacks Research raised shares of Arcos Dorados from a “strong sell” rating to a “hold” rating in a research note on Friday, November 21st. JPMorgan Chase & Co. decreased their price objective on shares of Arcos Dorados from $8.80 to $8.70 and set a “neutral” rating on the stock in a research report on Tuesday, November 11th. Finally, Wall Street Zen raised shares of Arcos Dorados from a “hold” rating to a “buy” rating in a report on Saturday, November 15th. Three investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $8.70.

Arcos Dorados Stock Performance

The firm has a market capitalization of $1.87 billion, a PE ratio of 7.61, a price-to-earnings-growth ratio of 3.03 and a beta of 0.46. The company has a debt-to-equity ratio of 1.32, a quick ratio of 0.81 and a current ratio of 0.89. The business’s fifty day simple moving average is $7.56 and its 200-day simple moving average is $7.22.

Arcos Dorados (NYSE:ARCO) last issued its earnings results on Wednesday, November 12th. The restaurant operator reported $0.12 earnings per share for the quarter, topping analysts’ consensus estimates of $0.10 by $0.02. The firm had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.28 billion. Arcos Dorados had a net margin of 5.39% and a return on equity of 20.42%. Arcos Dorados’s revenue for the quarter was up 5.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.17 earnings per share. As a group, equities research analysts expect that Arcos Dorados Holdings Inc. will post 0.63 EPS for the current year.

Institutional Trading of Arcos Dorados

Several hedge funds have recently modified their holdings of ARCO. NewEdge Wealth LLC grew its holdings in shares of Arcos Dorados by 24.7% in the fourth quarter. NewEdge Wealth LLC now owns 17,929 shares of the restaurant operator’s stock valued at $132,000 after purchasing an additional 3,552 shares in the last quarter. Acorn Financial Advisory Services Inc. ADV lifted its position in Arcos Dorados by 1.8% during the fourth quarter. Acorn Financial Advisory Services Inc. ADV now owns 221,138 shares of the restaurant operator’s stock valued at $1,623,000 after purchasing an additional 3,974 shares during the last quarter. Truist Financial Corp purchased a new position in shares of Arcos Dorados in the 4th quarter worth $76,000. WJ Financial Advisors LLC purchased a new position in shares of Arcos Dorados in the 4th quarter worth $232,000. Finally, Hussman Strategic Advisors Inc. bought a new stake in shares of Arcos Dorados in the 4th quarter worth about $771,000. 55.91% of the stock is owned by hedge funds and other institutional investors.

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.