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Arcos Dorados (ARCO) Surges 13.9%: Is This an Indication of Further Gains?
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Arcos Dorados (ARCO - Free Report) shares rallied 13.9% in the last trading session to close at $8.1. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13% loss over the past four weeks.
Arcos Dorados shares rose as investors responded positively to the company’s ambitious growth plans unveiled at its Investor Day. Management plans to open 550-600 new restaurants and invest $1.3-$1.5 billion from 2027 through 2030, targeting mid- to high-single-digit annual revenue growth and high-single- to low-double-digit adjusted EBITDA growth.
This restaurant owner is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +41.7%. Revenues are expected to be $1.35 billion, up 13.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Arcos Dorados, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ARCO going forward to see if this recent jump can turn into more strength down the road.
Arcos Dorados belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Red Robin (RRGB - Free Report) , closed the last trading session 1.3% higher at $8.05. Over the past month, RRGB has returned -6.1%.
Red Robin's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.68. Compared to the company's year-ago EPS, this represents a change of +2.9%. Red Robin currently boasts a Zacks Rank of #4 (Sell).
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Arcos Dorados (ARCO) Surges 13.9%: Is This an Indication of Further Gains?
Arcos Dorados (ARCO - Free Report) shares rallied 13.9% in the last trading session to close at $8.1. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13% loss over the past four weeks.
Arcos Dorados shares rose as investors responded positively to the company’s ambitious growth plans unveiled at its Investor Day. Management plans to open 550-600 new restaurants and invest $1.3-$1.5 billion from 2027 through 2030, targeting mid- to high-single-digit annual revenue growth and high-single- to low-double-digit adjusted EBITDA growth.
This restaurant owner is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +41.7%. Revenues are expected to be $1.35 billion, up 13.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Arcos Dorados, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ARCO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Arcos Dorados belongs to the Zacks Retail - Restaurants industry. Another stock from the same industry, Red Robin (RRGB - Free Report) , closed the last trading session 1.3% higher at $8.05. Over the past month, RRGB has returned -6.1%.
Red Robin's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.68. Compared to the company's year-ago EPS, this represents a change of +2.9%. Red Robin currently boasts a Zacks Rank of #4 (Sell).