ARCO:NYE-Arcos Dorados Holdings Inc (USD)

COMMON STOCK | Restaurants | NYE

Last Closing Price

USD 4.51

Change

+0.30 (+7.13)%

Market Cap

USD 0.80B

Volume

3.55M

Average Target Price

USD 6.50 (+44.12%)
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, Curacao, Ecuador, French Guyana, 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 April 29, 2020, the company operated or franchised approximately 2,300 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: 2020-06-03 )

Largest Industry Peers for Restaurants

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

+5.70 (+3.04%)

USD139.48B 24.74 18.00
CMG Chipotle Mexican Grill, Inc

-9.18 (-0.87%)

USD29.53B 87.69 38.32
YUM Yum! Brands, Inc

+2.35 (+2.55%)

USD27.25B 25.28 21.23
YUMC Yum China Holdings, Inc

+1.47 (+3.09%)

USD17.83B 32.41 12.56
QSR Restaurant Brands Internationa..

+1.46 (+2.56%)

USD16.85B 23.52 13.37
DPZ Domino's Pizza, Inc

+5.28 (+1.37%)

USD15.00B 36.78 27.11
DRI Darden Restaurants, Inc

+7.81 (+10.00%)

USD10.14B 15.21 12.38
ARMK Aramark

+1.35 (+5.09%)

USD6.63B 58.84 11.85
CNNE Cannae Holdings, Inc

-0.28 (-0.77%)

USD2.85B 3.63 2.23
SHAK Shake Shack Inc

+2.11 (+3.94%)

USD2.25B 111.10 40.09

ETFs Containing ARCO

Symbol Name Weight Mer Price(Change) Market Cap
FRN Invesco Frontier Markets .. 0.00 % 0.70 %

N/A

USD0.06B
EEMS iShares MSCI Emerging Mar.. 0.00 % 0.69 %

+0.77 (+2.02%)

USD0.17B
ARGT Global X MSCI Argentina E.. 0.00 % 0.60 %

+0.74 (+3.19%)

USD0.04B

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 -44.32% 11% F 11% F
Dividend Return 0.62% 36% F 28% F
Total Return -43.70% 11% F 10% F
Trailing 12 Months  
Capital Gain -29.64% 29% F 22% F
Dividend Return 1.72% 60% D- 42% F
Total Return -27.93% 29% F 21% F
Trailing 5 Years  
Capital Gain -22.51% 46% F 35% F
Dividend Return 4.47% 11% F 17% F
Total Return -18.04% 46% F 29% F
Average Annual (5 Year Horizon)  
Capital Gain 25.56% 94% A 94% A
Dividend Return 0.61% 10% F 12% F
Total Return 26.17% 94% A 93% A
Risk Return Profile  
Volatility (Standard Deviation) 51.46% 6% F 6% F
Risk Adjusted Return 50.86% 59% F 56% F
Market Capitalization 0.80B 39% F 54% 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%

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 54.57 24% F 9% F
Price/Book Ratio 2.99 46% F 23% F
Price / Cash Flow Ratio 3.57 72% C- 60% D-
EV/EBITDA 9.33 72% C- 56% F
Management Effectiveness  
Return on Equity 4.97% 38% F 41% F
Return on Invested Capital 11.62% 50% F 77% C+
Return on Assets 3.39% 44% F 63% D
Debt to Equity Ratio 148.07% 20% F 21% F
Technical Ratios  
Short Ratio 0.49 94% A 79% C+
Short Percent 0.42% 89% B+ 91% A-
Beta 1.68 50% F 19% 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:
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.

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 return on equity

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

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.

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.