Arcos Dorados (NYSE:ARCO) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Arcos Dorados (NYSE:ARCO) from a buy rating to a hold rating in a research note issued to investors on Saturday morning,Wall Street Zen reports.

A number of other analysts have also recently commented on ARCO. Zacks Research cut Arcos Dorados from a “strong-buy” rating to a “hold” rating in a research report on Monday, August 10th. Weiss Ratings raised Arcos Dorados from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday. Finally, JPMorgan Chase & Co. raised Arcos Dorados from a “neutral” rating to an “overweight” rating and upped their target price for the company from $9.00 to $10.50 in a research report on Friday, July 17th. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Arcos Dorados has a consensus rating of “Moderate Buy” and a consensus target price of $10.50.

Arcos Dorados Price Performance

Shares of NYSE:ARCO opened at $7.75 on Friday. The company’s fifty day moving average price is $7.85 and its 200 day moving average price is $8.28. Arcos Dorados has a 12 month low of $6.67 and a 12 month high of $9.75. The company has a debt-to-equity ratio of 1.14, a current ratio of 0.88 and a quick ratio of 0.81. The firm has a market capitalization of $1.63 billion, a P/E ratio of 6.36 and a beta of 0.48.

Arcos Dorados (NYSE:ARCO) last announced its quarterly earnings results on Friday, August 14th. The restaurant operator reported $0.22 earnings per share for the quarter, beating analysts’ consensus estimates of $0.15 by $0.07. Arcos Dorados had a net margin of 5.15% and a return on equity of 12.50%. The firm had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.28 billion. As a group, sell-side analysts predict that Arcos Dorados will post 0.79 earnings per share for the current fiscal year.

Institutional Trading of Arcos Dorados

Several hedge funds have recently made changes to their positions in ARCO. DGS Capital Management LLC boosted its stake in shares of Arcos Dorados by 10.6% in the fourth quarter. DGS Capital Management LLC now owns 13,481 shares of the restaurant operator’s stock valued at $99,000 after buying an additional 1,290 shares in the last quarter. NewEdge Wealth LLC raised its position in Arcos Dorados by 13.2% in the first quarter. NewEdge Wealth LLC now owns 20,289 shares of the restaurant operator’s stock worth $167,000 after acquiring an additional 2,360 shares in the last quarter. Confluence Investment Management LLC raised its position in Arcos Dorados by 21.0% in the second quarter. Confluence Investment Management LLC now owns 21,798 shares of the restaurant operator’s stock worth $176,000 after acquiring an additional 3,783 shares in the last quarter. Public Employees Retirement System of Ohio purchased a new position in Arcos Dorados in the second quarter worth $31,000. Finally, FNY Investment Advisers LLC purchased a new position in Arcos Dorados in the second quarter worth $40,000. 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 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.