Brokerages Set Arcos Dorados Holdings Inc. (NYSE:ARCO) Price Target at $8.70

Arcos Dorados Holdings Inc. (NYSE:ARCO) has earned an average rating of “Hold” from the five ratings firms that are currently covering the company, Marketbeat.com reports. Three equities research analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $8.70.

Several brokerages have recently commented on ARCO. The Goldman Sachs Group reissued a “buy” rating on shares of Arcos Dorados in a research note on Wednesday, April 8th. Santander raised Arcos Dorados to an “outperform” rating in a research note on Monday, April 20th. Wall Street Zen raised Arcos Dorados from a “hold” rating to a “buy” rating in a report on Saturday, May 23rd. Finally, Weiss Ratings downgraded Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 29th.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in ARCO. Lazard Asset Management LLC grew its stake in Arcos Dorados by 35.3% in the 3rd quarter. Lazard Asset Management LLC now owns 20,128,477 shares of the restaurant operator’s stock valued at $135,867,000 after acquiring an additional 5,255,199 shares during the last quarter. Sei Investments Co. increased its holdings in Arcos Dorados by 132.8% during the 1st quarter. Sei Investments Co. now owns 3,483,732 shares of the restaurant operator’s stock valued at $28,741,000 after acquiring an additional 1,987,271 shares in the last quarter. SPX Gestao de Recursos Ltda increased its holdings in Arcos Dorados by 39.9% during the 3rd quarter. SPX Gestao de Recursos Ltda now owns 6,342,621 shares of the restaurant operator’s stock valued at $42,813,000 after acquiring an additional 1,808,125 shares in the last quarter. Brightlight Capital Management LP raised its position in Arcos Dorados by 55.2% during the fourth quarter. Brightlight Capital Management LP now owns 3,466,800 shares of the restaurant operator’s stock worth $25,446,000 after acquiring an additional 1,232,800 shares during the last quarter. Finally, Renaissance Technologies LLC raised its position in Arcos Dorados by 312.7% during the fourth quarter. Renaissance Technologies LLC now owns 1,049,734 shares of the restaurant operator’s stock worth $7,705,000 after acquiring an additional 795,400 shares during the last quarter. Institutional investors and hedge funds own 55.91% of the company’s stock.

Arcos Dorados Stock Up 1.0%

Shares of NYSE ARCO opened at $8.27 on Friday. The stock has a market capitalization of $1.74 billion, a price-to-earnings ratio of 7.45 and a beta of 0.48. Arcos Dorados has a 52 week low of $6.51 and a 52 week high of $9.75. The firm has a 50-day moving average price of $8.51 and a 200 day moving average price of $8.30. The company has a quick ratio of 0.73, a current ratio of 0.80 and a debt-to-equity ratio of 1.25.

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

Arcos Dorados Company Profile

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.