Arcos Dorados (ARCO) Rating Increased to Hold at Zacks Investment Research

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Zacks Investment Research upgraded shares of Arcos Dorados (NYSE:ARCO) from a sell rating to a hold rating in a research report sent to investors on Thursday morning, Zacks.com reports.

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. “

ARCO has been the topic of a number of other research reports. Bank of America reissued an underperform rating on shares of Arcos Dorados in a research note on Tuesday, January 22nd. TheStreet downgraded shares of Arcos Dorados from a b- rating to a c rating in a research note on Tuesday, April 30th.

Shares of ARCO stock opened at $6.05 on Thursday. Arcos Dorados has a 52 week low of $6.02 and a 52 week high of $9.22. The company has a current ratio of 0.77, a quick ratio of 0.85 and a debt-to-equity ratio of 3.91. The firm has a market capitalization of $1.24 billion, a PE ratio of 33.61 and a beta of 0.99.

Arcos Dorados (NYSE:ARCO) last issued its earnings results on Wednesday, May 15th. The restaurant operator reported $0.06 EPS for the quarter, missing the Zacks’ consensus estimate of $0.10 by ($0.04). Arcos Dorados had a net margin of 1.64% and a return on equity of 12.41%. The business had revenue of $731.00 million during the quarter. On average, equities analysts expect that Arcos Dorados will post 0.29 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 14th. Investors of record on Friday, August 9th will be paid a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a yield of 1.98%. The ex-dividend date is Thursday, August 8th. Arcos Dorados’s dividend payout ratio (DPR) is 111.11%.

Institutional investors have recently added to or reduced their stakes in the stock. INCA Investments LLC increased its stake in Arcos Dorados by 49.3% during the 4th quarter. INCA Investments LLC now owns 4,415,500 shares of the restaurant operator’s stock worth $34,882,000 after buying an additional 1,457,207 shares during the period. Inlet Private Wealth LLC increased its stake in Arcos Dorados by 37.8% during the 1st quarter. Inlet Private Wealth LLC now owns 140,800 shares of the restaurant operator’s stock worth $1,010,000 after buying an additional 38,600 shares during the period. Henry James International Management Inc. bought a new stake in shares of Arcos Dorados in the 4th quarter worth about $80,000. Lindbrook Capital LLC bought a new stake in shares of Arcos Dorados in the 4th quarter worth about $47,000. Finally, Legato Capital Management LLC increased its position in shares of Arcos Dorados by 21.2% in the 4th quarter. Legato Capital Management LLC now owns 486,338 shares of the restaurant operator’s stock worth $3,842,000 after purchasing an additional 85,022 shares during the last quarter. 40.29% of the stock is currently owned by hedge funds and other institutional investors.

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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