Due to the bearish trend, the target price is fixed around USD 4.7/4.5 for Arcos Dorados Holding.
The fundamental situation of the company remains fragile. Indeed, EPS have been strongly revised downward during the last year from USD 0.55 to -0.28.
Technically, the share is in a downward trend. The moving averages are decreasing and are still above prices, thereby stopping any rebounds. The security is going toward the USD 5.49 support, a level that will represents a sell signal on its breakdown.
Taking into account fundamental and technical elements, investors can initiate a short position in Arcos with a price target at USD 4.7, under the current support of USD 5.5. A return towards USD 5.87 will invalidate the bearish strategy, which justifies a stop loss.
Arcos Dorados Holdings Inc. is a McDonald's franchisee. The Company operates or franchises over 2,140 McDonald's-branded restaurants. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Colombia, Curacao, French Guiana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the United States Virgin Islands of Saint Croix and Saint Thomas, and Venezuela; the North Latin America division (NOLAD), consisting of Costa Rica, Mexico and Panama, and the South Latin America division (SLAD), consisting of Argentina, Chile, Ecuador, Peru and Uruguay. Its menus feature over three tiers of products: entry-level options, such as its Big Pleasures, Small Prices offerings and Almuerzos Colombianos (Colombian Lunches) in Colombia; core menu options, such as the Big Mac, Happy Meal and Quarter Pounder, and premium options, such as Big Tasty or Angus premium hamburgers and chicken sandwiches and low-calorie or low-sodium products.
ARCOS DORADOS HOLDINGS INC. 
