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Upturn AI SWOT - About
ARCO 
Arcos Dorados Holdings Inc (ARCO)
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Upturn Advisory Summary
08/07/2025: ARCO (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
8 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $10.46
1 Year Target Price $10.46
| 2 | Strong Buy |
| 5 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -13.44% | Avg. Invested days 26 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/07/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.44B USD | Price to earnings Ratio 10.67 | 1Y Target Price 10.46 |
Price to earnings Ratio 10.67 | 1Y Target Price 10.46 | ||
Volume (30-day avg) 8 | Beta 0.59 | 52 Weeks Range 6.51 - 10.23 | Updated Date 08/6/2025 |
52 Weeks Range 6.51 - 10.23 | Updated Date 08/6/2025 | ||
Dividends yield (FY) 3.51% | Basic EPS (TTM) 0.64 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-08-13 | When - | Estimate 0.0722 | Actual - |
Profitability
Profit Margin 3.01% | Operating Margin (TTM) 4.19% |
Management Effectiveness
Return on Assets (TTM) 5.88% | Return on Equity (TTM) 26.85% |
Valuation
Trailing PE 10.67 | Forward PE 14.51 | Enterprise Value 3126389004 | Price to Sales(TTM) 0.32 |
Enterprise Value 3126389004 | Price to Sales(TTM) 0.32 | ||
Enterprise Value to Revenue 0.7 | Enterprise Value to EBITDA 6.71 | Shares Outstanding 130663000 | Shares Floating 121074379 |
Shares Outstanding 130663000 | Shares Floating 121074379 | ||
Percent Insiders 4.58 | Percent Institutions 52.19 |
Upturn AI SWOT
Arcos Dorados Holdings Inc
Company Overview
History and Background
Arcos Dorados is the world's largest McDonald's franchisee, operating restaurants in Latin America and the Caribbean. Founded in 2007, it acquired the rights to own, operate, and grant franchises of McDonald's restaurants in these regions. The company has expanded its restaurant base and modernized its operations over time.
Core Business Areas
- Restaurant Operations: Owns and operates McDonald's restaurants, generating revenue through food and beverage sales.
- Franchising: Grants franchises to third parties, earning royalties and fees based on their restaurant sales.
Leadership and Structure
Woods Staton is the Executive Chairman and CEO. The organizational structure is based on regional divisions reporting to the corporate headquarters.
Top Products and Market Share
Key Offerings
- Big Mac: McDonald's signature burger. Competitors include Burger King's Whopper and Wendy's Dave's Single. Market share information for individual products is not publicly available from Arcos Dorados.
- Competitors: Burger King,Wendy's,Local Burger Chains
- Competitors: Burger King,Wendy's,Local Fast Food Chains
- Fries: McDonald's french fries. Competitors include Burger King's fries and Wendy's fries. Market share information for individual products is not publicly available from Arcos Dorados.
- Competitors: Burger King,Wendy's,Local Fast Food Chains
- Happy Meal: A meal targeted towards children. Competitors include similar offerings from Burger King and Wendy's.
Market Dynamics
Industry Overview
The fast-food industry in Latin America and the Caribbean is competitive and fragmented, with a mix of global and local players. Growth is driven by increasing urbanization and disposable incomes.
Positioning
Arcos Dorados benefits from the strong McDonald's brand recognition but faces competition from local chains and changing consumer preferences. Competitive advantages include scale and brand recognition.
Total Addressable Market (TAM)
The TAM is the total fast-food market value in Latin America and the Caribbean. While a precise figure is not readily available, the regional market is estimated in the tens of billions of USD. Arcos Dorados holds a significant, but not dominant, share of this TAM.
Upturn SWOT Analysis
Strengths
- Strong Brand Recognition
- Extensive Restaurant Network
- Established Supply Chain
- Experienced Management Team
Weaknesses
- Dependence on McDonald's Brand
- Exposure to Currency Fluctuations
- High Labor Costs
- Vulnerability to Economic Downturns
Opportunities
- Expansion into New Markets
- Menu Innovation
- Digital Transformation
- Strategic Acquisitions
Threats
- Intense Competition
- Changing Consumer Preferences
- Economic Instability
- Regulatory Changes
Competitors and Market Share
Key Competitors
- QSR
- CMG
- YUM
- WEN
Competitive Landscape
Arcos Dorados has the advantage of the McDonald's brand but needs to adapt to local preferences and compete with both global and local players.
Growth Trajectory and Initiatives
Historical Growth: Discuss the company's revenue and earnings growth over the past few years, analyzing the drivers of growth.
Future Projections: Refer to analyst reports for projections of Arcos Dorados's future revenue and earnings growth.
Recent Initiatives: Highlight recent strategic initiatives such as menu innovation, digital transformation, and restaurant expansion.
Summary
Arcos Dorados benefits from a strong brand and extensive network in Latin America, but it faces economic volatility and intense competition. Menu innovation and digital transformation are key to its future growth. Currency fluctuations and shifting consumer tastes pose challenges. While ARCO displays a good marketshare, there is limited growth potential. The company should focus on initiatives to further increase brand value.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Arcos Dorados's SEC filings (10-K, 10-Q)
- McDonald's Corporation Investor Relations
- Analyst Reports
- Industry Reports
Disclaimers:
This analysis is based on publicly available information and should not be considered financial advice. Market conditions and company performance are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Arcos Dorados Holdings Inc
Exchange NYSE | Headquaters - | ||
IPO Launch date 2011-04-14 | CEO - | ||
Sector Consumer Cyclical | Industry Restaurants | Full time employees - | Website https://www.arcosdorados.com |
Full time employees - | Website https://www.arcosdorados.com | ||
Arcos Dorados Holdings Inc. operates as a franchisee of McDonald's restaurants. The company has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. The company was founded in 2007 and is based in Montevideo, Uruguay.
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