Arcos Dorados (NYSE:ARCO) Cut to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Arcos Dorados (NYSE:ARCO) from a hold rating to a sell rating in a report released on Wednesday, 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, CuraƧao, 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. “

Separately, Bank of America cut shares of Arcos Dorados from a buy rating to a neutral rating in a research report on Monday, September 20th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of Hold and an average target price of $6.78.

ARCO opened at $5.06 on Wednesday. The firm has a market cap of $1.06 billion, a price-to-earnings ratio of 45.92, a price-to-earnings-growth ratio of 1.90 and a beta of 1.35. Arcos Dorados has a fifty-two week low of $4.33 and a fifty-two week high of $6.82. The company’s 50-day moving average price is $5.01 and its 200 day moving average price is $5.65. The company has a quick ratio of 0.79, a current ratio of 0.86 and a debt-to-equity ratio of 3.97.

Arcos Dorados (NYSE:ARCO) last posted its earnings results on Wednesday, November 10th. The restaurant operator reported $0.12 EPS for the quarter, topping the consensus estimate of $0.06 by $0.06. Arcos Dorados had a net margin of 0.95% and a return on equity of 13.28%. The firm had revenue of $723.36 million during the quarter, compared to analysts’ expectations of $712.21 million. During the same quarter in the prior year, the firm earned ($0.14) EPS. Research analysts anticipate that Arcos Dorados will post 0.06 earnings per share for the current year.

Institutional investors have recently bought and sold shares of the company. Nelson Van Denburg & Campbell Wealth Management Group LLC boosted its holdings in shares of Arcos Dorados by 771.4% in the second quarter. Nelson Van Denburg & Campbell Wealth Management Group LLC now owns 6,100 shares of the restaurant operator’s stock valued at $36,000 after acquiring an additional 5,400 shares in the last quarter. Citadel Advisors LLC lifted its stake in Arcos Dorados by 617.7% during the second quarter. Citadel Advisors LLC now owns 11,213 shares of the restaurant operator’s stock valued at $67,000 after purchasing an additional 13,379 shares during the last quarter. OLD Mission Capital LLC acquired a new stake in Arcos Dorados during the second quarter valued at approximately $67,000. Dynamic Technology Lab Private Ltd acquired a new stake in Arcos Dorados during the third quarter valued at approximately $75,000. Finally, Ausdal Financial Partners Inc. acquired a new stake in Arcos Dorados during the third quarter valued at approximately $78,000. Institutional investors and hedge funds own 38.22% of the company’s stock.

About Arcos Dorados

Arcos Dorados Holdings, Inc engages in the operation of restaurants. The firm operates and franchises McDonald’s restaurants in the food services industry through its subsidiaries. It operates through the following geographical segments: Brazil, Caribbean Division, North Latin America division (NOLAD), and South Latin America division (SLAD).

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