ARCO:NYE-Arcos Dorados Holdings Inc. Class A Shares (USD)

EQUITY | Restaurants | New York Stock Exchange

Last Closing

USD 7.29

Change

-0.09 (-1.22)%

Market Cap

USD 1.19B

Volume

0.65M

Analyst Target

USD 6.52
Analyst Rating

Verdict

ducovest Verdict

Verdict

About

Arcos Dorados Holdings Inc operates and franchises McDonald's restaurants. It operates in the QSR sub-segment of the fast food segment of the Latin American and Caribbean food service industry.

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2024-12-27 )

Largest Industry Peers for Restaurants

Symbol Name Price(Change) Market Cap
MCD McDonald’s Corporation

-1.18 (-0.40%)

USD 214.26B
QSR Restaurant Brands Internationa..

-0.30 (-0.46%)

USD 30.03B
CAVA CAVA Group, Inc.

-2.12 (-1.82%)

USD 17.29B
BROS Dutch Bros Inc

-2.46 (-4.41%)

USD 8.50B
EAT Brinker International Inc

-4.64 (-3.38%)

USD 5.96B
SG Sweetgreen Inc

-0.99 (-2.97%)

USD 4.06B
CNNE Cannae Holdings Inc

-0.13 (-0.65%)

USD 1.29B
BH-A Biglari Holdings Inc

-62.32 (-4.68%)

USD 0.79B
BH Biglari Holdings Inc

-5.72 (-2.18%)

USD 0.71B
BDL Flanigans Enterprises Inc

+0.50 (+2.04%)

USD 0.05B

ETFs Containing ARCO

KCAL 5.81 % 0.00 %

N/A

N/A
ARGT Global X MSCI Argentina E.. 0.00 % 0.60 %

-0.07 (0%)

N/A
BRF VanEck Brazil Small-Cap E.. 0.00 % 0.60 %

-0.08 (0%)

N/A
MENU 0.00 % 0.65 %

N/A

N/A

Market Performance

  Market Performance vs. Industry/Classification (Restaurants) Market Performance vs. Exchange (New York Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -42.55% 6% D- 5% F
Dividend Return 1.89% 33% F 31% F
Total Return -40.66% 6% D- 5% F
Trailing 12 Months  
Capital Gain -42.55% 6% D- 5% F
Dividend Return 1.89% 33% F 31% F
Total Return -40.66% 6% D- 5% F
Trailing 5 Years  
Capital Gain -9.72% 19% F 39% F
Dividend Return 8.54% 56% F 25% F
Total Return -1.18% 19% F 26% F
Average Annual (5 Year Horizon)  
Capital Gain 23.43% 61% D- 83% B
Dividend Return 25.07% 61% D- 83% B
Total Return 1.64% 50% F 40% F
Risk Return Profile  
Volatility (Standard Deviation) 26.97% 72% C 40% F
Risk Adjusted Return 92.97% 94% A 94% A
Market Capitalization 1.19B 50% F 65% D

Key Financial Ratios

  Ratio vs. Industry/Classification (Restaurants) Ratio vs. Market (New York Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 20.50 73% 70%
Price/Book Ratio 3.30 60% 28%
Price / Cash Flow Ratio 4.43 83% 61%
Price/Free Cash Flow Ratio 7.25 67% 61%
Management Effectiveness  
Return on Equity 39.28% 100% 95%
Return on Invested Capital 18.70% 75% 87%
Return on Assets 6.93% 83% 85%
Debt to Equity Ratio 138.38% 38% 25%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What to not like:
Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.