Arcos Dorados initiated with a Buy at Jefferies

Jefferies initiated coverage of Arcos Dorados with a Buy rating and $15 price target. The firm initiated on 18 consumer companies in Latin America across food and beverage, food retail, apparel retail, footwear, sports retail and fitness, and specialized retail, citing a preference for “consistent compounders,” leveraged players into rates cycle and one turnaround play. Arcos, the world’s largest McDonald’s franchisee with respect to system-wide sales and number of restaurants, has an attractive valuation and growth coupled with strong asset-backing, the analyst tells investors.