ARCO:NYE-Arcos Dorados Holdings Inc (USD)

COMMON STOCK | Restaurants | NYE

Last Closing Price

USD 7.25

Change

-0.01 (-0.14)%

Market Cap

USD 1.52B

Volume

0.42M

Avg Analyst Target

USD 10.33 (+42.53%)

Avg User Target

USD
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict


ARCO Stock Forecast & Price:
Based on the Arcos Dorados Holdings Inc stock forecasts from 3 analysts, the average analyst target price for Arcos Dorados Holdings Inc is USD 10.33 over the next 12 months. Arcos Dorados Holdings Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Arcos Dorados Holdings Inc is Bearish, which is based on 4 positive signals and 10 negative signals. At the last closing, Arcos Dorados Holdings Inc’s stock price was USD 7.25. Arcos Dorados Holdings Inc’s stock price has changed by -0.55% over the past week, +3.42% over the past month and +43.28% over the last year.

About Arcos Dorados Holdings Inc (ARCO:NYE)

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, Braz ...Read More

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2022-11-25 )

Largest Industry Peers for Restaurants

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
MCD McDonald’s Corporation

+1.73 (+0.63%)

USD201.24B 34.65 26.86
CMG Chipotle Mexican Grill Inc

+6.37 (+0.42%)

USD41.75B 52.75 33.75
YUM Yum! Brands Inc

+0.60 (+0.48%)

USD35.10B 28.39 20.03
QSR Restaurant Brands Internationa..

-0.17 (-0.25%)

USD30.73B 22.10 16.10
YUMC Yum China Holdings Inc

-1.68 (-3.22%)

USD21.69B 25.79 17.47
DRI Darden Restaurants Inc

+0.06 (+0.04%)

USD18.11B 20.55 14.87
DPZ Domino’s Pizza Inc

-2.68 (-0.68%)

USD13.87B 28.85 21.71
BROS Dutch Bros Inc

-0.31 (-0.86%)

USD5.84B N/A 115.69
SHAK Shake Shack Inc

+0.99 (+2.05%)

USD1.97B 101.44 49.89
CNNE Cannae Holdings Inc

+0.05 (+0.22%)

USD1.80B 6.74 -3.62

ETFs Containing ARCO

Symbol Name Weight Mer Price(Change) Market Cap
ARGT Global X MSCI Argentina E.. 0.00 % 0.59 %

+0.49 (+1.53%)

USD0.03B

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 24.36% 100% A+ 93% A
Dividend Return 2.06% 67% D+ 43% F
Total Return 26.42% 100% A+ 93% A
Trailing 12 Months  
Capital Gain 45.00% 100% A+ 96% A
Dividend Return 2.40% 56% F 44% F
Total Return 47.40% 100% A+ 95% A
Trailing 5 Years  
Capital Gain -28.33% 15% F 23% F
Dividend Return 4.32% 13% F 13% F
Total Return -24.01% 15% F 17% F
Average Annual (5 Year Horizon)  
Capital Gain 1.48% 28% F 50% F
Dividend Return 1.26% 36% F 31% F
Total Return 2.73% 22% F 42% F
Risk Return Profile  
Volatility (Standard Deviation) 31.95% 61% D- 34% F
Risk Adjusted Return 8.55% 22% F 33% F
Market Capitalization 1.52B 41% F 64% D
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-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 11.52 81% B- 66% D
Price/Book Ratio 7.18 42% F 10% F
Price / Cash Flow Ratio 5.88 65% D 50% F
EV/EBITDA 7.28 71% C- 50% F
Management Effectiveness  
Return on Equity 61.50% 100% A+ 90% A-
Return on Invested Capital 10.99% 47% F 71% C-
Return on Assets 6.70% 71% C- 79% C+
Debt to Equity Ratio 335.35% 17% F 8% F
Technical Ratios  
Dividend Yield 1.65% 30% F 26% F
Short Ratio 0.79 100% A+ 74% C
Short Percent 0.74% 88% B+ 80% B-
Beta 1.08 50% F 47% 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 Ratings

Target Price Action Rating Action Analyst Rating Price Date

Discussions

User / Independent Analyst Ratings

User Name Target Rating Target Horizon (Months) Target Price User Analysis Date Comment

Fundamental Analysis Breakdown

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:
Underpriced compared to earnings

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

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.

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.

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median total returns

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

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

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.

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.

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