This is why Arcos Dorados Holdings Inc. (ARCO) Stock is one of the options for the Longer run

Arcos Dorados Holdings Inc. [ARCO] stock prices are up 1.40% to $7.94 at the moment. One of the good ways to gauge the recent performance is if the stock’s short-term value is rising or falling. The ARCO shares have lost -1.85% over the last week, with a monthly amount drifted -5.02%, and not seem to be holding up well over a long-time horizon.

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On 15, March 2023, Arcos Dorados Reports Record Fourth Quarter and Full Year 2022 Financial Results. In a post published today on Yahoo Finance, Total revenue¹ reached $1.0 billion for the first time in a single quarter and $3.6 billion for the full year 2022.

From an analyst’s perspective:

Arcos Dorados Holdings Inc. [NYSE: ARCO] stock has seen the most recent analyst activity on September 27, 2022, when Barclays initiated its Overweight rating and assigned the stock a price target of $9. Previously, HSBC Securities downgraded its rating to Hold on April 04, 2022, and kept the price target unchanged to $8. On March 24, 2022, upgrade upgraded it’s rating to Buy and revised its price target to $10 on the stock. Credit Suisse upgraded its rating to a Outperform but stick to its price target of $9.50 on February 23, 2022. Goldman upgraded its rating to a Buy and raised its price target to $7 on January 19, 2022. BofA Securities downgraded its rating to Neutral for this stock on September 20, 2021.

The stock price of Arcos Dorados Holdings Inc. [ARCO] has been fluctuating between $6.23 and $9.04 over the past year. Currently, Wall Street analysts expect the stock to reach $10.60 within the next 12 months. Arcos Dorados Holdings Inc. [NYSE: ARCO] shares were valued at $7.94 at the most recent close of the market. An investor can expect a potential return of 33.5% based on the average ARCO price forecast.

Analyzing the ARCO fundamentals

The most recent quarter, Arcos Dorados Holdings Inc. [NYSE:ARCO] reported sales of 921.7 billion, representing a surge of 27.00%. Gross Margin for this corporation currently stands at +12.20% with Operating Margin at +5.07%, Pretax Margin comes in at +2.92%, and Net Margin reading is +1.71%.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 7.68 points at the first support level, and at 7.42 for the second support level. However, for the 1st resistance point, the stock is sitting at 8.07, and for the 2nd resistance point, it is at 8.20.

Arcos Dorados Holdings Inc. [ARCO] reported earnings per share of $0.23 for its fiscal quarter that ended on 9/29/2022. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of $0.1/share, meaning a difference of $0.13 and a surprise factor of 130.00%. By comparison, the stated earnings for the previous quarter ended on 6/29/2022 were $0.07 per share as compared to estimates of $0.12 per share, a difference of -$0.05 representing a surprise of -41.70%.

Ratios To Look Out For

It’s worth pointing out that Arcos Dorados Holdings Inc. [NYSE:ARCO]’s Current Ratio is 1.00. Also, the Quick Ratio is 0.81, while the Cash Ratio stands at 0.40. Considering the valuation of this stock, the price to sales ratio is 0.46, the price to book ratio is 5.57 and the P/E (TTM) ratio is 12.74.