Morgan Stanley Updates Estimates For Arcos Dorados

In a report published Tuesday, Morgan Stanley analyst Lore Serra reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “We believe that ARCO's decision to move to SICAD II allows it to present results that better reflect the true economics of the business. However, we remain Equal-weight, with a negative bias, as valuation does not appear to reflect the risks from uneven top line and margin trends in Brazil, a potential slowdown in consumption in Argentina, and increasing leverage levels.” Arcos Dorados closed on Tuesday at $10.64.