Arcos Dorados Holdings Inc. (NYSE:ARCO) Receives Consensus Recommendation of “Hold” from Brokerages

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) have received an average recommendation of “Hold” from the five brokerages that are currently covering the stock, MarketBeat reports. Three research analysts have rated the stock with a hold recommendation and two have given a buy recommendation to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $8.70.

Several research analysts have recently commented on the stock. Santander raised shares of Arcos Dorados to an “outperform” rating in a report on Monday, April 20th. Weiss Ratings cut shares of Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday. Wall Street Zen upgraded Arcos Dorados from a “hold” rating to a “buy” rating in a research note on Saturday, May 23rd. Finally, The Goldman Sachs Group reaffirmed a “buy” rating on shares of Arcos Dorados in a report on Wednesday, April 8th.

Arcos Dorados Price Performance

Shares of ARCO opened at $8.24 on Friday. Arcos Dorados has a 52 week low of $6.51 and a 52 week high of $9.75. The company has a current ratio of 0.80, a quick ratio of 0.73 and a debt-to-equity ratio of 1.25. The firm has a market cap of $1.74 billion, a price-to-earnings ratio of 7.43 and a beta of 0.48. The stock has a 50 day moving average of $8.61 and a 200-day moving average of $8.26.

Arcos Dorados (NYSE:ARCO) last posted its quarterly earnings results on Wednesday, May 20th. The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.06. The business had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.21 billion. Arcos Dorados had a return on equity of 10.47% and a net margin of 4.86%.The business’s revenue was up 12.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.07 EPS. As a group, analysts forecast that Arcos Dorados will post 0.73 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Global Retirement Partners LLC increased its position in Arcos Dorados by 9,074.6% in the fourth quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator’s stock worth $42,000 after buying an additional 5,717 shares during the period. Quarry LP acquired a new position in shares of Arcos Dorados during the third quarter valued at $45,000. Aquatic Capital Management LLC bought a new position in shares of Arcos Dorados during the third quarter worth about $53,000. Tudor Investment Corp ET AL bought a new position in shares of Arcos Dorados during the third quarter worth about $73,000. Finally, Tower Bridge Advisors acquired a new stake in shares of Arcos Dorados in the 3rd quarter worth about $75,000. Institutional investors and hedge funds 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, 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.