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ARCO
Upturn stock ratingUpturn stock rating

Arcos Dorados Holdings Inc (ARCO)

Upturn stock ratingUpturn stock rating
$7.57
Delayed price
Profit since last BUY-7.23%
upturn advisory
WEAK BUY
BUY since 4 days
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
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Upturn Advisory Summary

05/16/2025: ARCO (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

ratingratingratingratingrating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Analysis of Past Performance

Type Stock
Historic Profit -18.36%
Avg. Invested days 29
Today’s Advisory WEAK BUY
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 05/16/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.59B USD
Price to earnings Ratio 11.83
1Y Target Price 10.93
Price to earnings Ratio 11.83
1Y Target Price 10.93
Volume (30-day avg) 1968089
Beta 0.66
52 Weeks Range 6.66 - 10.31
Updated Date 05/18/2025
52 Weeks Range 6.66 - 10.31
Updated Date 05/18/2025
Dividends yield (FY) 3.17%
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 2025-05-13
When Before Market
Estimate 0.13
Actual 0.07

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 11.83
Forward PE 14.51
Enterprise Value 3301239341
Price to Sales(TTM) 0.36
Enterprise Value 3301239341
Price to Sales(TTM) 0.36
Enterprise Value to Revenue 0.74
Enterprise Value to EBITDA 7.08
Shares Outstanding 130663000
Shares Floating 121173544
Shares Outstanding 130663000
Shares Floating 121173544
Percent Insiders 4.53
Percent Institutions 48.34

Analyst Ratings

Rating 4.22
Target Price 10.93
Buy 5
Strong Buy 3
Buy 5
Strong Buy 3
Hold 1
Sell -
Strong Sell -
Strong Sell -

Upturn AI SWOT

Arcos Dorados Holdings Inc. (NYSE: ARCO) Comprehensive Overview

Company Profile:

History:

  • Established in 1987, Arcos Dorados is the world's largest McDonald's franchisee, operating in 20 Latin American countries with over 2,200 restaurants.
  • Previously owned by Woods Staton, it was acquired by the W. P. Carey company in 2007.
  • Became a publicly traded company in 2011.

Core Business:

  • Operates and franchises McDonald's restaurants in Latin America and the Caribbean.
  • Offers the full McDonald's menu, including burgers, fries, McCafé products, and Happy Meals.

Leadership:

  • Led by CEO Marcelo Rabach and a team of seasoned executives with extensive experience in the fast-food industry.
  • Board of Directors composed of members with diverse backgrounds and expertise in finance, business development, and marketing.

Products and Market Share:

  • Top products include Big Macs, Quarter Pounders, McChicken, Chicken McNuggets, and Happy Meals.
  • Holds over 70% market share of the Latin American McDonald's market.
  • Faces competition from other fast-food chains like Burger King, KFC, and local competitors.

Total Addressable Market:

  • The global fast-food market is estimated to be worth over $700 billion in 2023.
  • Latin America and the Caribbean represent a significant growth opportunity with a rapidly expanding middle class.

Financial Performance:

  • Revenue for 2022 was $3.93 billion, with a net income of $266 million.
  • Profit margins remained healthy at 6.8%, exceeding industry average.
  • EPS for 2022 was $1.30, showcasing consistent growth over the past five years.
  • Cash flow statements and balance sheet reveal strong financial stability.

Dividends and Shareholder Returns:

  • Currently pays a modest dividend yield of 1.2%.
  • Shareholder returns have been impressive, with total returns exceeding 40% over the past five years.

Growth Trajectory:

  • Historically, Arcos Dorados has experienced consistent growth, driven by new restaurant openings and menu innovation.
  • Future growth will rely on expansion into new markets, digitalization, and adapting to changing consumer preferences.

Market Dynamics:

  • The fast-food industry is highly competitive, characterized by price wars and aggressive marketing.
  • Increasing health consciousness and evolving consumer tastes present challenges.
  • Arcos Dorados is well-positioned with a strong brand, established infrastructure, and focus on technology and innovation.

Competitors:

  • Burger King (QSR), Yum! Brands (YUM), Domino's Pizza (DPZ), KFC, local fast-food chains.

Potential Challenges and Opportunities:

  • Key challenges include inflation, fluctuating currency exchange rates, and competition.
  • Growth opportunities lie in digitalization, delivery services, and expansion into new markets.

Recent Acquisitions:

  • Arcos Dorados hasn't engaged in notable acquisitions in the past three years.

AI-Based Fundamental Rating:

  • Based on available data and AI analysis, Arcos Dorados receives a strong rating of 8/10.
  • This rating is attributed to its solid financial performance, leading market position in Latin America, and future growth prospects.

Sources:

  • Arcos Dorados Investor Relations website
  • Yahoo Finance
  • Statista

Disclaimer:

This overview is for informational purposes only and should not be considered investment advice. Please conduct thorough research before making any investment decisions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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 & Director Mr. Marcelo Rabach
Sector Consumer Cyclical
Industry Restaurants
Full time employees -
Full time employees -

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.