Alert: Negative Investment/Fundamental Signals (6/7/24)-Arcos Dorados Holdings Inc (NYSE: ARCO)

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Recent meaningful negative changes in fundamentals have affected Arcos Dorados Holdings Inc (NYSE: ARCO): the stock’s power rating fell below 50, the consensus estimate for December, 2024 decreased significantly, and the consensus estimate for December, 2025 decreased significantly.

Important negative changes in Arcos Dorados Holdings Inc (NYSE: ARCO) investment behavior have recently occurred: the stock fell on very heavy volume.

In light of these highly negative signals we are reviewing our current Overall Rating of C. We would view the shares with caution pending completion of this review in the next several days.

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Current PriceTarget Research Rating

ARCO is expected to continue to be a major Value Builder reflecting capital returns that are forecasted to exceed the cost of capital.

Arcos Dorados Holdings has a current Value Trend Rating of C (Neutral). The Value Trend Rating reflects contradictory signals from PTR’s two proprietary measures of a stock’s attractiveness. Arcos Dorados Holdings has a slightly positive Appreciation Score of 63 but a slightly negative Power Rating of 38, producing the Neutral Value Trend Rating.

Recent Price Action

On 6/7/24, Arcos Dorados Holdings Inc (NYSE: ARCO) stock declined by -3.7%, closing at $9.50. Moreover, exceptionally high trading volume at 234% of normal accompanied the decline. The stock has declined -2.2% during the last week and has performed in line with the market over the last nine months.

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