Arcos Dorados (NYSE:ARCO) Rating Increased to Overweight at JPMorgan Chase & Co.

JPMorgan Chase & Co. upgraded shares of Arcos Dorados (NYSE:ARCO) from a neutral rating to an overweight rating in a research report released on Friday morning,Benzinga reports. JPMorgan Chase & Co. currently has $10.50 target price on the restaurant operator’s stock, up from their previous target price of $9.00.

A number of other brokerages also recently issued reports on ARCO. Zacks Research upgraded Arcos Dorados from a “hold” rating to a “strong-buy” rating in a research report on Friday, July 10th. Wall Street Zen raised shares of Arcos Dorados from a “hold” rating to a “buy” rating in a research note on Saturday, May 23rd. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Arcos Dorados in a research note on Wednesday, April 8th. Weiss Ratings downgraded shares of Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, June 29th. Finally, Santander raised shares of Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, Arcos Dorados presently has a consensus rating of “Buy” and an average price target of $10.50.

Arcos Dorados Price Performance

Shares of NYSE:ARCO opened at $8.21 on Friday. The firm has a market cap of $1.73 billion, a price-to-earnings ratio of 7.40 and a beta of 0.48. The firm has a fifty day moving average price of $8.44 and a 200 day moving average price of $8.33. Arcos Dorados has a fifty-two week low of $6.51 and a fifty-two week high of $9.75. The company has a debt-to-equity ratio of 1.25, a quick ratio of 0.73 and a current ratio of 0.80.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings data on Thursday, May 21st. The restaurant operator reported $0.17 EPS for the quarter, beating the consensus estimate of $0.11 by $0.06. The business had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.21 billion. Arcos Dorados had a net margin of 4.86% and a return on equity of 10.47%. Arcos Dorados’s quarterly revenue was up 12.9% compared to the same quarter last year. During the same quarter last year, the business earned $0.07 earnings per share. As a group, sell-side analysts expect that Arcos Dorados will post 0.73 earnings per share for the current fiscal year.

Institutional Trading of Arcos Dorados

A number of institutional investors and hedge funds have recently made changes to their positions in the business. FNY Investment Advisers LLC acquired a new stake in shares of Arcos Dorados in the second quarter valued at approximately $40,000. Global Retirement Partners LLC increased its stake in Arcos Dorados by 9,074.6% during the fourth quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator’s stock worth $42,000 after purchasing an additional 5,717 shares during the period. Quarry LP acquired a new stake in Arcos Dorados during the 3rd quarter worth approximately $45,000. Aquatic Capital Management LLC acquired a new position in Arcos Dorados during the 3rd quarter worth $53,000. Finally, Truist Financial Corp purchased a new stake in shares of Arcos Dorados during the fourth quarter worth approximately $76,000. 55.91% of the stock is currently owned by hedge funds and other institutional investors.

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.