ARCO:NYE-Arcos Dorados Holdings Inc (USD)

COMMON STOCK | Restaurants | NYE

Last Closing Price

USD 5.89

Change

+0.21 (+3.70)%

Market Cap

USD 1.18B

Volume

1.24M

Average Target Price

USD 5.60 (-4.92%)
Average Analyst Rating

Verdict

Fundamental Analysis

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 U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. As of December 31, 2019, it operated or franchised 2,293 restaurants. Arcos Dorados Holdings Inc. was founded in 2007 and is based in Montevideo, Uruguay.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-05-05 )

Largest Industry Peers for Restaurants

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

+1.18 (+0.50%)

USD174.48B 33.94 27.29
CMG Chipotle Mexican Grill, Inc

-23.50 (-1.62%)

USD40.82B 101.60 52.16
YUM Yum! Brands, Inc

+1.72 (+1.44%)

USD35.57B 31.93 22.25
YUMC Yum China Holdings, Inc

+0.36 (+0.58%)

USD25.91B 26.79 16.79
QSR Restaurant Brands Internationa..

-0.85 (-1.22%)

USD21.45B 41.09 21.71
DRI Darden Restaurants, Inc

-1.52 (-1.06%)

USD18.63B 17.38 306.17
DPZ Domino's Pizza, Inc

-2.10 (-0.48%)

USD16.85B 35.22 24.88
ARMK Aramark

-0.42 (-1.10%)

USD9.72B 48.00 328.11
SHAK Shake Shack Inc

+0.78 (+0.74%)

USD4.44B 101.44 854.64
CNNE Cannae Holdings, Inc

-0.50 (-1.29%)

USD3.69B 1.94 1.42

ETFs Containing ARCO

Symbol Name Weight Mer Price(Change) Market Cap

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 17.10% 56% F 69% D+
Dividend Return N/A N/A N/A N/A N/A
Total Return 17.10% 56% F 67% D+
Trailing 12 Months  
Capital Gain 66.25% 50% F 67% D+
Dividend Return 1.69% 38% F 22% F
Total Return 67.95% 56% F 66% D
Trailing 5 Years  
Capital Gain 28.63% 43% F 49% F
Dividend Return 6.91% 22% F 18% F
Total Return 35.55% 43% F 42% F
Average Annual (5 Year Horizon)  
Capital Gain 2.85% 42% F 51% F
Dividend Return 0.99% 25% F 23% F
Total Return 3.83% 42% F 43% F
Risk Return Profile  
Volatility (Standard Deviation) 41.59% 37% F 21% F
Risk Adjusted Return 9.22% 42% F 27% F
Market Capitalization 1.18B 33% F 52% F
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 70.86 24% F 10% F
Price/Book Ratio 6.01 38% F 18% F
Price / Cash Flow Ratio 73.74 11% F 5% F
EV/EBITDA 32.03 33% F 17% F
Management Effectiveness  
Return on Equity -48.22% 7% F 8% F
Return on Invested Capital -8.20% 28% F 12% F
Return on Assets -1.53% 33% F 16% F
Debt to Equity Ratio 398.88% 15% F 7% F
Technical Ratios  
Short Ratio 2.21 78% C+ 46% F
Short Percent 2.03% 61% D- 69% D+
Beta 1.38 50% F 31% 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

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:
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.

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.

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 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.

Overpriced on cashflow basis

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

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

Low Dividend Growth

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