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Arcos Dorados shares should react negatively to results, says Morgan Stanley

Morgan Stanley notes that Arcos Dorados (ARCO)’ Q4 EBITDA and net income missed expectations and adjusted for nonrecurring tax credits was an “unexpected” net loss of $1M, voicing the view that shares “should react negatively to results.” The firm has an Overweight rating and $11.50 price target on shares, which are down about 1% to $7.64 in Thursday morning trading.

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