ARCO Stock Overview
Arcos Dorados Holdings Inc. operates as a franchisee of McDonald’s restaurants.
Arcos Dorados Holdings Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$5.47|
|52 Week High||US$6.72|
|52 Week Low||US$4.33|
|1 Month Change||6.84%|
|3 Month Change||16.88%|
|1 Year Change||6.70%|
|3 Year Change||-35.45%|
|5 Year Change||-1.37%|
|Change since IPO||-73.48%|
Recent News & Updates
Arcos Dorados: Bullish On LATAM's Largest McDonald's Franchisee
The largest franchisee of McDonald's restaurants in Latin America is presenting a solid recovery out of the pandemic. The company continues to expand in the region and is seeing strong comparable sales growth against 2019 pre-pandemic benchmarks. We are bullish on ARCO as a regional leader in quick-service restaurants with solid fundamentals and a positive long-term outlook.
Should You Think About Buying Arcos Dorados Holdings Inc. (NYSE:ARCO) Now?
While Arcos Dorados Holdings Inc. ( NYSE:ARCO ) might not be the most widely known stock at the moment, it saw a...
We Think Arcos Dorados Holdings' (NYSE:ARCO) Robust Earnings Are Conservative
Arcos Dorados Holdings Inc. ( NYSE:ARCO ) recently posted some strong earnings, and the market responded positively. We...
|ARCO||US Hospitality||US Market|
Return vs Industry: ARCO exceeded the US Hospitality industry which returned -0.3% over the past year.
Return vs Market: ARCO underperformed the US Market which returned 13.7% over the past year.
|ARCO Average Weekly Movement||5.5%|
|Hospitality Industry Average Movement||7.8%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: ARCO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: ARCO's weekly volatility (5%) has been stable over the past year.
About the Company
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.
Arcos Dorados Holdings Fundamentals Summary
|ARCO fundamental statistics|
Is ARCO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ARCO income statement (TTM)|
|Cost of Revenue||US$2.22b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||0.10|
|Net Profit Margin||0.88%|
How did ARCO perform over the long term?See historical performance and comparison
Is Arcos Dorados Holdings undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ARCO ($5.47) is trading above our estimate of fair value ($1.26)
Significantly Below Fair Value: ARCO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ARCO is poor value based on its PE Ratio (53.2x) compared to the US Hospitality industry average (27.1x).
PE vs Market: ARCO is poor value based on its PE Ratio (53.2x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: ARCO is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: ARCO is overvalued based on its PB Ratio (6.3x) compared to the US Hospitality industry average (3.1x).
How is Arcos Dorados Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ARCO's forecast earnings growth (48.2% per year) is above the savings rate (2%).
Earnings vs Market: ARCO's earnings (48.2% per year) are forecast to grow faster than the US market (13% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ARCO's revenue (9.7% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: ARCO's revenue (9.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ARCO's Return on Equity is forecast to be high in 3 years time (27.7%)
How has Arcos Dorados Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ARCO has high quality earnings.
Growing Profit Margin: ARCO became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: ARCO's earnings have declined by 49.7% per year over the past 5 years.
Accelerating Growth: ARCO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: ARCO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (79.7%).
Return on Equity
High ROE: ARCO's Return on Equity (12%) is considered low.
How is Arcos Dorados Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: ARCO's short term assets ($426.7M) do not cover its short term liabilities ($498.4M).
Long Term Liabilities: ARCO's short term assets ($426.7M) do not cover its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: ARCO's net debt to equity ratio (298%) is considered high.
Reducing Debt: ARCO's debt to equity ratio has increased from 181.2% to 408.8% over the past 5 years.
Debt Coverage: ARCO's debt is well covered by operating cash flow (26.8%).
Interest Coverage: ARCO's interest payments on its debt are not well covered by EBIT (1.7x coverage).
What is Arcos Dorados Holdings's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ARCO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate ARCO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ARCO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ARCO's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: ARCO is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ARCO's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Marcelo Rabach (51 yo)
Mr. Marcelo Rabach serves as Chief Executive Officer at Arcos Dorados Holdings, Inc. since July 1, 2019 and is its Director. He served as Chief Operating Officer of Arcos Dorados Holdings, Inc. since Augus...
Experienced Management: ARCO's management team is considered experienced (3.5 years average tenure).
Experienced Board: ARCO's board of directors are seasoned and experienced ( 10.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Arcos Dorados Holdings Inc.'s employee growth, exchange listings and data sources
- Name: Arcos Dorados Holdings Inc.
- Ticker: ARCO
- Exchange: NYSE
- Founded: 2007
- Industry: Restaurants
- Sector: Consumer Services
- Implied Market Cap: US$1.168b
- Shares outstanding: 213.49m
- Website: https://www.arcosdorados.com
- Arcos Dorados Holdings Inc.
- Dr. Luis Bonavita 1294
- 5th Floor
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/16 23:02|
|End of Day Share Price||2022/01/14 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.