According to Bloomberg Ratings, the stock has an average “buy” rating from the seven rating agencies presently monitoring Arcos Dorados Holdings Inc. (NYSE: ARCO). In addition, five financial analysts encouraged investors to purchase the stock; one gave a strong buy recommendation, and one suggested holding the shares. The average price target among brokerages that have rated the company in the preceding year is $9.75.
Financial analysts from several firms have expressed their opinions on the stock. The Goldman Sachs Group raised their price target on shares of Arcos Dorados from $9.00 to $10.00 in a research note released on Tuesday, August 30, and classified the stock as a “buy.” StockNews.com changed its “buy” recommendation to a “strong-buy” rating for Arcos Dorados’ stock in a research report released on Wednesday. Barclays formally started covering shares in Arcos Dorados on Tuesday, September 27. They rated the company as “overweight” and set the price goal at $9.
The opening offer for ARCO on Friday was $7.26. The preceding year saw a low of $4.83 and a high of $8.44 for Arcos Dorados. The stock is undervalued with a market size of $1.53 billion, a PEG ratio of 1.25, an earnings-to-price ratio of 11.52, and a beta of 1.08. The debt to equity for the company is 2.99; the quick ratio is 0, and the current ratio is 0.97. The 50-day and 200-day moving average values of the company’s stock are $7.31 and $7.25, respectively.
Institutional investors and hedge funds have recently boosted or lessened their holdings in the company. Invesco Ltd. grew its stake in Arcos Dorados by 12.5% during the first quarter. Invesco Ltd. now owns 21,962,867 shares in the restaurant operator, valued at $178,559,000, following its most recent purchase of 2,435,111 shares. Bank of Montreal Can increase its holding in Arcos Dorado’s shares during the third quarter by acquiring a new position worth roughly $8,492,000. Macquarie Group Ltd. increased its stake in Arcos Dorados by 41.0% during the second quarter. Macquarie Group Ltd. added 1,143,252 more shares to its existing holdings, bringing the restaurant operator’s total to 3,932,557 at $26,506,000. SPX Gestao de Recursos Ltd. purchased Arcos Dorado’s shares during the third quarter for around $8,269,000.
Last but not least, during the first quarter, Moerus Capital Management LLC grew its ownership of Arcos Dorados by 20.6%. Moerus Capital Management LLC now owns 6,031,654 of the restaurant operator’s stock, worth $49,037,000, after acquiring an additional 1,030,193 shares during the most recent quarter. Institutions and hedge funds currently own 35.66% of the company’s shares.
Arcos Dorados Holdings Inc. is a franchisee of McDonald’s restaurants. The company has the exclusive right to own and run McDonald’s restaurants in 20 nations and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, and the United States.