JPMorgan analyst Froylan Mendez downgraded Arcos Dorados (ARCO) to Neutral from Overweight with a price target of $8.80, down from $10.50. For Arcos, the firm thinks Brazil will keep missing expectations as the inflection point should only come by next year. The firm is adopting a relative preference in the QSR sector towards Alsea over Arcos as it sees an inflection point in operational momentum in Q2 for the former driven by improved same-store sales in both Mexico and Europe, the analyst tells investors.
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