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Upturn AI SWOT - About
ARCO 
Arcos Dorados Holdings Inc (ARCO)
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Upturn Advisory Summary
10/15/2025: 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 $10.3
1 Year Target Price $10.3
| 2 | Strong Buy |
| 5 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -14.21% | 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 10/15/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.46B USD | Price to earnings Ratio 11.23 | 1Y Target Price 10.3 |
Price to earnings Ratio 11.23 | 1Y Target Price 10.3 | ||
Volume (30-day avg) 8 | Beta 0.6 | 52 Weeks Range 6.45 - 9.44 | Updated Date 10/14/2025 |
52 Weeks Range 6.45 - 9.44 | Updated Date 10/14/2025 | ||
Dividends yield (FY) 3.45% | Basic EPS (TTM) 0.62 |
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 - | When - | Estimate - | Actual - |
Profitability
Profit Margin 2.89% | Operating Margin (TTM) 5.47% |
Management Effectiveness
Return on Assets (TTM) 5.81% | Return on Equity (TTM) 24.82% |
Valuation
Trailing PE 11.23 | Forward PE 14.51 | Enterprise Value 3195859959 | Price to Sales(TTM) 0.32 |
Enterprise Value 3195859959 | Price to Sales(TTM) 0.32 | ||
Enterprise Value to Revenue 0.71 | Enterprise Value to EBITDA 11.17 | Shares Outstanding 130663057 | Shares Floating 121074379 |
Shares Outstanding 130663057 | Shares Floating 121074379 | ||
Percent Insiders 4.58 | Percent Institutions 43.17 |
Upturn AI SWOT
Arcos Dorados Holdings Inc
Company Overview
History and Background
Arcos Dorados Holdings Inc. is the world's largest McDonald's franchisee, operating restaurants in Latin America and the Caribbean. Founded in 2007, it took over the McDonald's operations in the region and has grown through expansion and renovation.
Core Business Areas
- Restaurant Operations: Operates and franchises McDonald's restaurants, offering a wide variety of menu items.
- Franchising: Grants franchises to independent entrepreneurs to operate McDonald's restaurants under the Arcos Dorados umbrella.
Leadership and Structure
The company has a board of directors and an executive leadership team responsible for strategic decision-making and operational oversight. Key figures include the CEO and CFO.
Top Products and Market Share
Key Offerings
- Burgers (Big Mac, Quarter Pounder): Flagship products with significant market share in the Latin American fast-food burger market. Competitors include Burger King, Wendy's, and local burger chains. Exact market share data is difficult to obtain without proprietary reports.
- Chicken McNuggets: Popular menu item competing with other fast-food chicken offerings. Revenue contributes significantly to the overall sales. Competitors include KFC and other fast-food chains.
- French Fries: A staple side item, competing against similar offerings from other fast-food restaurants. Contributes to customer satisfaction and overall profitability.
Market Dynamics
Industry Overview
The fast-food industry in Latin America is characterized by growth potential driven by urbanization and rising disposable incomes. Competition is intense, with global and local players vying for market share.
Positioning
Arcos Dorados holds a leading position in the Latin American fast-food market due to its strong brand recognition (McDonald's), extensive restaurant network, and established supply chain.
Total Addressable Market (TAM)
The TAM for the Latin American fast-food market is estimated to be in the tens of billions of dollars. Arcos Dorados captures a significant portion, but precise TAM figures require access to market research reports.
Upturn SWOT Analysis
Strengths
- Strong brand recognition (McDonald's)
- Extensive restaurant network in Latin America
- Established supply chain
- Experienced management team
Weaknesses
- Dependence on McDonald's brand standards
- Exposure to currency fluctuations in Latin America
- Vulnerability to economic downturns in the region
- High operating costs in some markets
Opportunities
- Expansion into new markets within Latin America
- Menu innovation to cater to local tastes
- Increased focus on digital channels and delivery services
- Leveraging technology to improve operational efficiency
Threats
- Intense competition from other fast-food chains
- Changing consumer preferences towards healthier options
- Economic instability in Latin America
- Regulatory challenges related to labor and food safety
Competitors and Market Share
Key Competitors
- BKC (Burger King)
- YUM (Yum! Brands - KFC, Pizza Hut, Taco Bell)
- DRI (Darden Restaurants)
Competitive Landscape
Arcos Dorados benefits from the strength of the McDonald's brand, but faces competition based on price, menu offerings, and local market preferences.
Major Acquisitions
None
- Year: 2024
- Acquisition Price (USD millions): 0
- Strategic Rationale: Arcos Dorados has not made any big acquisitions recently. The company has focused on organic expansion and improvement.
Growth Trajectory and Initiatives
Historical Growth: Arcos Dorados's growth trends over the past years are available on their investor relations website.
Future Projections: Analyst estimates for Arcos Dorados's future growth are available through financial news and research services.
Recent Initiatives: Strategic initiatives undertaken by Arcos Dorados are announced through press releases and investor presentations.
Summary
Arcos Dorados is the largest McDonald's franchisee in Latin America and the Caribbean with strong brand recognition and an extensive restaurant network. While it benefits from these strengths, its dependence on the McDonald's brand, exposure to currency fluctuations, and intense competition pose challenges. The company's future growth depends on menu innovation, expansion into new markets, and leveraging technology to improve operations and better serve customers. Economic conditions in Latin America also highly impact its success.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Arcos Dorados Investor Relations
- Financial News Outlets
- Market Research Reports (Estimate Market Share)
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Financial data is based on estimates and publicly available information, which may be subject to change. Consult a financial professional before making any investment decisions.
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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