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ARCO logo ARCO
Upturn stock ratingUpturn stock rating
ARCO logo

Arcos Dorados Holdings Inc (ARCO)

Upturn stock ratingUpturn stock rating
$7.15
Last Close (24-hour delay)
upturn advisory
PASS
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  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
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Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
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Time period over
  • ALL
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Upturn Advisory Summary

08/28/2025: ARCO (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

rating

Not Recommended Performance

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

Number of Analysts

rating

8 Analysts rated it

Limited analyst coverage, niche firm, research info may be scarce.

1 Year Target Price $10.4

1 Year Target Price $10.4

Analysts Price Target For last 52 week
$10.4 Target price
52w Low $6.51
Current$7.15
52w High $10.03

Analysis of Past Performance

Type Stock
Historic Profit -13.44%
Avg. Invested days 26
Today’s Advisory PASS
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 08/28/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.51B USD
Price to earnings Ratio 11.53
1Y Target Price 10.4
Price to earnings Ratio 11.53
1Y Target Price 10.4
Volume (30-day avg) 8
Beta 0.59
52 Weeks Range 6.51 - 10.03
Updated Date 08/28/2025
52 Weeks Range 6.51 - 10.03
Updated Date 08/28/2025
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 2025-08-13
When -
Estimate 0.07
Actual 0.13

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 11.53
Forward PE 14.51
Enterprise Value 3299084857
Price to Sales(TTM) 0.34
Enterprise Value 3299084857
Price to Sales(TTM) 0.34
Enterprise Value to Revenue 0.72
Enterprise Value to EBITDA 11.39
Shares Outstanding 130663000
Shares Floating 121074379
Shares Outstanding 130663000
Shares Floating 121074379
Percent Insiders 4.58
Percent Institutions 47.91

ai summary icon Upturn AI SWOT

Arcos Dorados Holdings Inc

stock logo

Company Overview

overview logo 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.

business area logo 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 logo 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

overview logo 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 logo 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

competitor logo 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.

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 -
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.