Arcos Dorados Holdings

Rising Costs In Brazil Will Constrain Margins Yet Spur Efficiency

AnalystLowTarget

Not Invested

Community Contributor

Published

09 May 25

Updated

16 Dec 25

Views

n/a

AnalystLowTarget's Fair Value

n/a

-1.0%

-2.4%

-1.0%

-2.4%

You can edit this narrative until Dec 17 5:10 PM. Then, changes will post as Updates.

Author's Valuation

US$7.87.1% undervalued

AnalystLowTarget Fair Value

Narrative

Updates1

Shared on 16 Dec 25

Fair value Decreased 8.24%

ARCO: Neutral Outlook Will Hinge On Brazil Momentum And Margin Execution

Analysts have trimmed their price target on Arcos Dorados Holdings to about $7.80 from $8.50, reflecting slightly weaker expectations for revenue growth and profit margins, even as they acknowledge a modestly lower discount rate and somewhat higher future valuation multiples. Analyst Commentary Recent Street research reflects a more cautious stance on Arcos Dorados, with multiple bearish analysts moderating their expectations for the stock.

AnalystLowTarget Fair Value

US$7.8

7.1% undervalued

Future estimation in

Growth p.a.

Decrease

Increase

Current revenue growth rate

6.71%

Hospitality revenue growth rate

0.49%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

Decrease

Increase

Current discount rate

15.42%

Calculation

US$138.65m

Earnings '28

18.09x

PE Ratio '28

US$2.51b

Market Cap '28

US$2.51b

Market Cap '28

210.66m

No. shares '28

US$11.91

Share Price '28

US$11.91 Share Price '28

Discounted to 2025 @ 15.27% p.a.

US$7.78

Fair Value '25