Shares of Arcos Dorados Holdings Inc., which operates McDonald’s restaurants in Latin America, tumbled after Morgan Stanley cut its price target based on lower fourth quarter expectations.
Buenos Aires-based Arcos Dorados fell 2.7 percent to $22.32 in New York trading at 10:14 a.m. local time. It was the biggest intra-day decline since Jan. 10. The company operates 1,777 restaurants in 20 countries in Latin America and the Caribbean, according to its website.
Morgan Stanley cut its price target for the Buenos Aires-based company to $25 from $28, citing “slower top-line growth” in the fourth quarter.
Arcos Dorados will report fourth quarter earnings on March 5, the company said in a statement yesterday. The company got 53 percent of sales from Brazil last year as total revenue climbed 13 percent from a year earlier to $3 billion. Revenue will rise 10 percent in 2012, according to the median estimate of five analysts surveyed by Bloomberg.