ARCO:NYE-Arcos Dorados Holdings Inc

COMMON STOCK | Restaurants | NYE

Last Closing Price

USD 6.82

Change

-0.18 (-2.57)%

Market Cap

USD 1.43B

Volume

0.19M

Average Target Price

USD 9.75 (+42.96%)
Average Analyst Rating

Verdict

STA Verdict

Verdict

About

Arcos Dorados Holdings Inc. operates as a franchisee of McDonald's restaurants. It 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, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the United States Virgin Islands of St. Croix and St. Thomas, and Venezuela. As of March 27, 2019, the company operated or franchised approximately 2,200 McDonald's-branded restaurants in Latin America. Arcos Dorados Holdings Inc. was founded in 2007 and is based in Montevideo, Uruguay.

Market Stats

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2019-08-23 )

Largest Industry Peers for Restaurants

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
QSR Restaurant Brands Internationa..

-0.04 (-0.05%)

USD 2.10B 33.63 15.82
DRI Darden Restaurants, Inc

-0.37 (-0.31%)

USD 1.80B 21.01 13.21
EAT Brinker International, Inc

-1.70 (-4.21%)

USD 1.48B 9.94 7.27
YUM YUM! Brands, Inc

-2.00 (-1.70%)

USD 1.34B 27.91 23.46
DIN Dine Brands Global, Inc

-1.05 (-1.36%)

USD 1.29B 13.24 12.43
ARMK Aramark

-0.32 (-0.80%)

USD 1.28B 18.84 11.92
CMG Chipotle Mexican Grill, Inc

-13.71 (-1.67%)

USD 1.23B 92.39 40.89
DPZ Domino's Pizza, Inc

-5.70 (-2.46%)

USD 0.97B 25.87 20.69
NATH Nathan's Famous, Inc

-2.41 (-3.52%)

USD 0.29B 13.44 12.46
BH-A Biglari Holdings Inc

-22.51 (-4.78%)

USD 0.29B 2.69 54.97

ETFs Containing ARCO

Symbol Name Weight Mer Price(Change) Market Cap
MENU 4.69 % 0.65 %

N/A

N/A
ARGT Global X MSCI Argentina E.. 2.77 % 0.60 %

-0.65 (-2.65%)

USD 0.10B

Market Performance

  Market Performance vs.
Industry/Classification (Restaurants)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -13.67% 18% F 14% F
Dividend Return 1.01% 27% F 28% F
Total Return -12.66% 18% F 14% F
Trailing 12 Months  
Capital Gain 0.29% 59% F 64% D
Dividend Return 1.91% 45% F 38% F
Total Return 2.21% 59% F 62% D-
Trailing 5 Years  
Capital Gain -7.08% 42% F 45% F
Dividend Return 4.89% 11% F 17% F
Total Return -2.20% 33% F 35% F
Average Annual (5 Year Horizon)  
Capital Gain 20.16% 94% A 92% A-
Dividend Return 0.46% 9% F 11% F
Total Return 20.61% 82% B- 91% A-
Risk Return Profile  
Volatility (Standard Deviation) 56.13% 6% F 5% F
Risk Adjusted Return 36.73% 59% F 51% F
Market Capitalization 1.43B 83% B 87% B+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Restaurants)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 24.91 53% F 28% F
Price/Book Ratio 3.76 33% F 23% F
Price / Cash Flow Ratio 7.95 78% C+ 52% F
EV/EBITDA 10.35 89% B+ 46% F
Management Effectiveness  
Return on Equity 14.93% 58% F 77% C+
Return on Invested Capital 7.88% 22% F 60% D-
Return on Assets 5.10% 39% F 75% C
Debt to Equity Ratio 160.46% 20% F 20% F
Technical Ratios  
Short Ratio 3.37 72% C- 42% F
Short Percent 1.23% 72% C- 87% B+
Beta 0.31 94% A 78% C+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

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:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

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.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free 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.

What to not like:
High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

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

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Higly 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.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

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

Low Revenue Growth

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

Low Dividend Growth

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