Arcos Dorados (NYSE: ARCO): This Low-Priced Stock Could Soar 50% in the Next 6 Months

For many folks in Latin America, 2011 seems like an awfully long time ago. Just two years ago, regional economies were booming, and growth in middle-class consumption was off the charts.
That proved to be a fortuitous time for Arcos Dorados (NYSE: ARCO) to go public. At the time, the company operated more than 1,700 McDonalds (NYSE: MCD) franchises in 19 countries across Latin America and the Caribbean, and in many respects was firing on all cylinders. Sales, EBITDA and net income were all rising at an impressive clip, and analysts expected more of the same in the years to come.
And then the wheels fell off.
Many Latin American economies eventually hit an air pocket, most notably in Brazil, which accounts for more than half of this company's sales and EBITDA. And as these economies have slowed, analysts have repeatedly lowered their profit forecasts.
Shares, which surged after the April 2011 IPO, now remain in a deep funk.

How badly has the economic slump affected financial results? (more)
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