Update shared on 02 Dec 2025
Fair value Decreased 0.12%Analysts have slightly lowered their price target for Arcos Dorados Holdings by $0.10, citing ongoing momentum concerns, particularly in Brazil.
Analyst Commentary
Recent analyst commentary on Arcos Dorados Holdings reflects a balanced view of the company's valuation and operational trends, with particular focus on its performance in the Brazilian market.
Bullish Takeaways- Bullish analysts maintain that Arcos Dorados remains well-positioned as a leading quick-service restaurant operator in Latin America. This supports long-term growth potential for the company.
- Steady revenue generation and resilience in the face of regional challenges continue to be seen as strengths for the company.
- Despite current headwinds, the company's diversified presence across multiple countries is viewed as a buffer against localized slowdowns.
- Bearish analysts note persistent momentum concerns in Brazil, which is weighing on near-term growth expectations for the company.
- Recent downgrades and reduced price targets reflect uncertainty about the pace of operational recovery, especially where consumer demand remains soft.
- Execution risks, particularly in key markets, are prompting a more cautious outlook on both valuation and future performance.
- Neutral ratings suggest limited upside potential in the current environment without clear catalysts for renewed acceleration in growth.
Valuation Changes
- Fair Value Estimate has edged down slightly, from $9.51 to $9.50. This reflects minor adjustments to projected cash flows.
- Discount Rate has decreased modestly, moving from 15.17% to 14.99%. This implies a slightly less risky outlook for the company.
- Revenue Growth Forecast has declined marginally, from 7.29% to 7.23%. This indicates a slightly more conservative growth expectation.
- Net Profit Margin estimate has dipped a little, from 3.29% to 3.28%. This points to minor revisions in expected profitability.
- Future P/E Ratio projection has fallen slightly, from 16.49x to 16.46x. This reflects tempered expectations for valuation multiples.
Disclaimer
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