Zacks Investment Research upgraded shares of Arcos Dorados (NYSE:ARCO) from a sell rating to a hold rating in a report published on Friday morning.
According to Zacks, “Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s with its operations divided in Brazil; North Latin America division; South Latin America and the Caribbean division. It also runs quick service restaurants in Latin America and the Caribbean. It has operations in territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. Arcos Dorados Holdings Inc. is headquartered in Buenos Aires, Argentina. “
Several other research analysts have also recently weighed in on the company. ValuEngine cut Arcos Dorados from a hold rating to a sell rating in a research report on Friday, June 1st. TheStreet cut Arcos Dorados from a b- rating to a c+ rating in a research report on Friday, August 31st. One investment analyst has rated the stock with a sell rating, one has given a hold rating and two have issued a buy rating to the company. The company has a consensus rating of Hold and a consensus target price of $10.00.
Shares of Arcos Dorados stock opened at $6.25 on Friday. Arcos Dorados has a 1 year low of $6.05 and a 1 year high of $10.80. The firm has a market cap of $1.32 billion, a price-to-earnings ratio of 10.25, a price-to-earnings-growth ratio of 1.15 and a beta of 1.68. The company has a debt-to-equity ratio of 1.57, a current ratio of 1.05 and a quick ratio of 0.95.
Arcos Dorados (NYSE:ARCO) last announced its quarterly earnings results on Wednesday, August 8th. The restaurant operator reported $0.01 earnings per share (EPS) for the quarter. Arcos Dorados had a return on equity of 21.03% and a net margin of 2.82%. The business had revenue of $753.97 million during the quarter. sell-side analysts forecast that Arcos Dorados will post 0.28 EPS for the current fiscal year.
Arcos Dorados declared that its board has authorized a stock repurchase program on Tuesday, May 22nd that permits the company to buyback $60.00 million in outstanding shares. This buyback authorization permits the restaurant operator to reacquire up to 3.9% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.
A number of hedge funds have recently bought and sold shares of the business. Stifel Financial Corp increased its position in Arcos Dorados by 13.3% during the 1st quarter. Stifel Financial Corp now owns 62,210 shares of the restaurant operator’s stock worth $572,000 after buying an additional 7,298 shares during the period. Eaton Vance Management increased its position in shares of Arcos Dorados by 28.5% in the first quarter. Eaton Vance Management now owns 36,818 shares of the restaurant operator’s stock worth $337,000 after purchasing an additional 8,173 shares during the period. Blair William & Co. IL bought a new position in shares of Arcos Dorados in the first quarter worth $102,000. Capstone Financial Advisors Inc. increased its position in shares of Arcos Dorados by 18.2% in the second quarter. Capstone Financial Advisors Inc. now owns 77,138 shares of the restaurant operator’s stock worth $536,000 after purchasing an additional 11,881 shares during the period. Finally, Royal Bank of Canada increased its position in shares of Arcos Dorados by 10.2% in the first quarter. Royal Bank of Canada now owns 136,700 shares of the restaurant operator’s stock worth $1,250,000 after purchasing an additional 12,691 shares during the period. Hedge funds and other institutional investors own 35.66% of the company’s stock.
Arcos Dorados Company Profile
Arcos Dorados Holdings Inc operates as a franchisee of McDonald's restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the United States Virgin Islands of St.
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