Arcos Dorados (NYSE:ARCO) Cut to Neutral at Bank of America

Bank of America downgraded shares of Arcos Dorados (NYSE:ARCO) from a buy rating to a neutral rating in a report issued on Monday morning, MarketBeat.com reports. Bank of America currently has $9.00 target price on the restaurant operator’s stock.

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

Arcos Dorados Trading Down 1.2%

NYSE:ARCO opened at $6.92 on Monday. The firm’s fifty day moving average is $7.77 and its 200-day moving average is $8.21. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.81 and a current ratio of 0.88. Arcos Dorados has a 52 week low of $6.67 and a 52 week high of $9.75. The firm has a market cap of $1.46 billion, a P/E ratio of 5.67 and a beta of 0.48.

Arcos Dorados (NYSE:ARCO) last posted its quarterly earnings data 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. Arcos Dorados had a net margin of 5.15% and a return on equity of 12.50%. The company had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.28 billion. Equities analysts expect that Arcos Dorados will post 0.80 earnings per share for the current year.

Institutional Trading of Arcos Dorados

Several hedge funds have recently modified their holdings of the stock. Public Employees Retirement System of Ohio acquired a new stake in Arcos Dorados in the second quarter worth $31,000. FNY Investment Advisers LLC bought a new stake in Arcos Dorados in the second quarter valued at $40,000. Squarepoint Ops LLC acquired a new position in shares of Arcos Dorados during the second quarter valued at about $81,000. Baird Financial Group Inc. acquired a new position in shares of Arcos Dorados during the second quarter valued at about $87,000. Finally, Bank of Nova Scotia acquired a new position in shares of Arcos Dorados during the first quarter valued at about $116,000. Institutional investors own 55.91% of the company’s stock.

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.