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

EQUITY | Restaurants | New York Stock Exchange

Last Closing Price

USD 7.08

Change

-0.10 (-1.39)%

Market Cap

USD 1.44B

Volume

0.23M

Average Target Price

N/A
Average Analyst Rating

N/A

STA 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: 2019-06-25 )

Largest Industry Peers for Restaurants

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

+1.79 (+0.88%)

USD 157.07B
YUM Yum! Brands Inc.

-0.35 (-0.32%)

USD 33.75B
CMG Chipotle Mexican Grill Inc.

+9.09 (+1.26%)

USD 20.32B
QSR Restaurant Brands Internationa..

-0.69 (-0.98%)

USD 17.67B
YUMC Yum China Holdings Inc.

+0.04 (+0.09%)

USD 17.39B
DRI Darden Restaurants Inc.

+1.15 (+0.94%)

USD 15.14B
DPZ Domino's Pizza Inc

+2.77 (+1.01%)

USD 11.39B
ARMK Aramark

N/A

USD 8.46B
SHAK Shake Shack Inc. Class A

+0.08 (+0.12%)

USD 2.48B
DIN Dine Brands Global Inc.

-2.03 (-2.13%)

USD 1.64B

ETFs Containing ARCO

Symbol Name Weight Mer Price(Change) Market Cap
MENU USCF Restaurant Leaders F.. 4.69 % 0.65 %

N/A

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

-0.06 (-0.19%)

USD 0.10B

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 -10.38% 13% F 9% F
Dividend Return 0.63% 20% F 15% F
Total Return -9.75% 13% F 9% F
Trailing 12 Months  
Capital Gain -1.67% 44% F 47% F
Dividend Return 1.39% 40% F 21% F
Total Return -0.28% 44% F 43% F
Trailing 5 Years  
Capital Gain -35.64% 27% F 21% F
Dividend Return 2.99% 13% F 10% F
Total Return -32.65% 27% F 18% F
Average Annual (5 Year Horizon)  
Capital Gain 17.66% 88% B+ 91% A-
Dividend Return 18.13% 81% B- 89% B+
Total Return 0.47% 10% F 11% F
Risk Return Profile  
Volatility (Standard Deviation) 57.86% 6% F 5% F
Risk Adjusted Return 31.33% 56% F 45% F
Market Capitalization 1.19B 38% F 64% D
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
(New York Stock Exchange)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 30.78 33% F 20% F
Price/Book Ratio 3.67 40% F 20% F
Price / Cash Flow Ratio 1.66 93% A 65% D
Price/Free Cash Flow Ratio 64.36 7% F 6% F
Management Effectiveness  
Return on Equity 12.43% 67% D+ 69% D+
Return on Invested Capital 14.06% 33% F 71% C-
Return on Assets 2.78% 27% F 54% F
Debt to Equity Ratio 161.25% 21% F 22% F
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 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.

What to not like:
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.

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 earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

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