Top 5 Restaurant Stocks Under $10

4. Arcos Dorados Holdings Inc. (NYSE:ARCO)

Number of Hedge Fund Holders: 13

Stock Price: $7.47

Arcos Dorados Holdings Inc. (NYSE:ARCO) is a Buenos Aires, Argentina-based master franchise of McDonald’s in 20 Latin American and Caribbean countries.

We have picked Arcos Dorados Holdings Inc. (NYSE:ARCO) as one of the best restaurant stocks because it provides exposure to one of the biggest fast-food restaurant chain operators at a share price of less than $10. Arcos Dorados Holdings Inc. (NYSE:ARCO) is the biggest franchisee of McDonald’s, with 2,250 restaurants, and employs 90,000 workers.

Antonio Hernandez at Barclays started coverage on Arcos Dorados Holdings Inc. (NYSE:ARCO) stock with a target price of $9 and an Overweight rating on September 27. The analyst anticipates the company to gain market share as growth strategies start being implemented. Furthermore, Hernandez sees Arcos Dorados Holdings Inc. (NYSE:ARCO) stock trading at a significant discount against its five-year average P/E multiple.

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