Arcos Dorados (NYSE:ARCO) Hits New 52-Week Low on Analyst Downgrade

Arcos Dorados Holdings Inc. (NYSE:ARCO) shares hit a new 52-week low during mid-day trading on Monday after Bank of America downgraded the stock from a buy rating to a neutral rating. Bank of America now has a $9.00 price target on the stock. Arcos Dorados traded as low as $6.60 and last traded at $7.1740, with a volume of 189,569 shares traded. The stock had previously closed at $8.09.

A number of other research firms also recently issued reports on ARCO. Weiss Ratings upgraded Arcos Dorados from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, October 8th. Zacks Research upgraded shares of Arcos Dorados from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 20th. Wall Street Zen downgraded Arcos Dorados from a “buy” rating to a “hold” rating in a report on Saturday, October 10th. Finally, JPMorgan Chase & Co. raised shares of Arcos Dorados from a “neutral” rating to an “overweight” rating and increased their price target for the company from $9.00 to $10.50 in a report on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $9.75.

Institutional Investors Weigh In On Arcos Dorados

A number of hedge funds have recently added to or reduced their stakes in the company. NewEdge Wealth LLC raised its stake in Arcos Dorados by 13.2% during the first quarter. NewEdge Wealth LLC now owns 20,289 shares of the restaurant operator’s stock valued at $167,000 after purchasing an additional 2,360 shares in the last quarter. Confluence Investment Management LLC raised its holdings in Arcos Dorados by 21.0% during the 2nd quarter. Confluence Investment Management LLC now owns 21,798 shares of the restaurant operator’s stock valued at $176,000 after buying an additional 3,783 shares during the period. Public Employees Retirement System of Ohio bought a new position in Arcos Dorados during the second quarter valued at $31,000. FNY Investment Advisers LLC bought a new stake in shares of Arcos Dorados in the 2nd quarter worth about $40,000. Finally, DGS Capital Management LLC grew its holdings in Arcos Dorados by 50.6% during the 1st quarter. DGS Capital Management LLC now owns 20,300 shares of the restaurant operator’s stock valued at $167,000 after purchasing an additional 6,819 shares during the last quarter. Institutional investors and hedge funds own 55.91% of the company’s stock.

Arcos Dorados Price Performance

The company has a market capitalization of $1.53 billion, a PE ratio of 5.88 and a beta of 0.48. The stock’s 50-day moving average is $7.83 and its two-hundred day moving average is $8.26. 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 issued its quarterly earnings results on Friday, August 14th. The restaurant operator reported $0.22 earnings per share for the quarter, topping the consensus estimate of $0.15 by $0.07. The firm had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.28 billion. Arcos Dorados had a return on equity of 12.50% and a net margin of 5.15%. On average, equities analysts predict that Arcos Dorados Holdings Inc. will post 0.80 EPS for the current year.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc (NYSE: ARCO) is the largest independent McDonald’s franchisee in the world. The company operates and franchises McDonald’s restaurants across Latin America and the Caribbean under a master franchise agreement with McDonald’s Corporation.

Its restaurants offer McDonald’s products, including hamburgers, chicken items, french fries, breakfast products, beverages, desserts and other menu offerings. Arcos Dorados also provides services such as McCafé, McDelivery, digital ordering and drive-thru operations, depending on the market.

Headquartered in Buenos Aires, Argentina, Arcos Dorados serves customers in approximately 20 countries and territories, including Argentina, Brazil, Chile, Colombia, Mexico, Peru, Puerto Rico, Uruguay and Venezuela.