Arcos Dorados (ARCO) Stock Price, News & Analysis

Company Overview

Arcos Dorados Holdings Inc. is the largest independent McDonald’s franchisee in the world, operating under an exclusive license agreement with McDonald’s Corporation. The company develops, owns and operates quick-service restaurants, offering the full McDonald’s menu, including hamburgers, chicken sandwiches, salads, sides, desserts and McCafé beverages. In addition to restaurant operations, Arcos Dorados manages supply chain logistics, property development, training and support services for its franchise network.

Headquartered in Montevideo, Uruguay, Arcos Dorados serves 20 markets across Latin America and the Caribbean, including Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico and Uruguay. Through a network of more than 2,200 restaurants, the company caters to a broad customer base with dine-in, drive-thru, delivery and digital ordering options. Its operations emphasize local sourcing, standardized quality controls and community engagement initiatives.

Formed in 2007 as a standalone franchisee after a regional restructuring of McDonald’s operations, Arcos Dorados completed its initial public offering on the New York Stock Exchange in November 2011. Since then, the company has focused on expanding its footprint, modernizing restaurant layouts and investing in technology to enhance the customer experience. Its business model seeks to balance growth opportunities with operational efficiency and cost management.

Arcos Dorados is led by a management team with extensive experience in the quick-service restaurant industry. The company’s directors and executives bring expertise in brand development, supply chain optimization and real estate strategy, positioning Arcos Dorados to capitalize on evolving consumer preferences and digital trends across its markets.

Key Stats

• Today's Range: $6.68 to $6.97
• 50-Day Range: $6.55 to $7.59
• 52-Week Range: $6.51 to $10.27
• Volume: 1.03 million shs
• Average Volume: 1.49 million shs
• Market Capitalization: $1.47 billion
• P/E Ratio: 11.06
• Dividend Yield: 3.44%
• Price Target: $8.80
• Consensus Rating: Hold

Arcos Dorados Stock Analysis - MarketRank™

Arcos Dorados scored higher than 81% of companies evaluated by MarketBeat, and ranked 56th out of 210 stocks in the retail/wholesale sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.2 / 5
• Analyst Rating: Hold

Consensus Rating

Arcos Dorados has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on no buy ratings, 1 hold rating, and no sell ratings.

Upside Potential

Arcos Dorados has a consensus price target of $8.80, representing about 27.1% upside from its current price of $6.93.

Amount of Analyst Coverage

Arcos Dorados has only been the subject of 1 research reports in the past 90 days.

Earnings and Valuation

• Score: 3.1 / 5
• Proj. Earnings Growth: 15.87%

Earnings Growth

Earnings for Arcos Dorados are expected to grow by 15.87% in the coming year, from $0.63 to $0.73 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Arcos Dorados is 11.01, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 299.01.

Price to Earnings Ratio vs. Sector

The P/E ratio of Arcos Dorados is 11.01, which means that it is trading at a less expensive P/E ratio than the Retail/Wholesale sector average P/E ratio of about 20.50.

Price to Earnings Growth Ratio

Arcos Dorados has a PEG Ratio of 1.31. PEG Ratios above 1 indicate that a company could be overvalued.

Price to Book Value per Share Ratio

Arcos Dorados has a P/B Ratio of 2.86. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.90% of the float of Arcos Dorados has been sold short.

Short Interest Ratio / Days to Cover

Arcos Dorados has a short interest ratio ("days to cover") of 2.5, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Arcos Dorados has recently increased by 1.45%, indicating that investor sentiment is decreasing.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Leadership

Arcos Dorados is a leading dividend payer. It pays a dividend yield of 3.58%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Arcos Dorados has only been increasing its dividend for 1 years.

Dividend Coverage

The dividend payout ratio of Arcos Dorados is 38.10%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Arcos Dorados will have a dividend payout ratio of 32.88% next year. This indicates that Arcos Dorados will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

2.90% of the float of Arcos Dorados has been sold short.

Short Interest Ratio / Days to Cover

Arcos Dorados has a short interest ratio ("days to cover") of 2.5, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Arcos Dorados has recently increased by 1.45%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 2.7 / 5
• News Sentiment: 0.90

News Sentiment

Arcos Dorados has a news sentiment score of 0.90. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Retail/Wholesale companies.

News Coverage This Week

MarketBeat has tracked 5 news articles for Arcos Dorados this week, compared to 5 articles on an average week.

Search Interest

2 people have searched for ARCO on MarketBeat in the last 30 days. This is an increase of 100% compared to the previous 30 days.

MarketBeat Follows

3 people have added Arcos Dorados to their MarketBeat watchlist in the last 30 days. This is an increase of 50% compared to the previous 30 days.

Company Ownership

• Score: 0.8 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Arcos Dorados insiders have not sold or bought any company stock.

Percentage Held by Institutions

55.91% of the stock of Arcos Dorados is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

ARCO Stock Analysis - Frequently Asked Questions

How have ARCO shares performed this year?

Arcos Dorados' stock was trading at $7.28 at the start of the year. Since then, ARCO shares have decreased by 4.9% and is now trading at $6.9250.

How were Arcos Dorados' earnings last quarter?

Arcos Dorados Holdings Inc. (NYSE:ARCO) announced its quarterly earnings data on Wednesday, August, 13th. The restaurant operator reported $0.11 earnings per share for the quarter, beating analysts' consensus estimates of $0.05 by $0.06. The business's quarterly revenue was up 2.8% compared to the same quarter last year.
Read the conference call transcript.

Who are Arcos Dorados' major shareholders?

Arcos Dorados' top institutional investors include Lazard Asset Management LLC (7.06%), Pzena Investment Management LLC (3.10%), Franklin Resources Inc. (1.86%) and MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. (1.67%).

How do I buy shares of Arcos Dorados?

Shares of ARCO stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Arcos Dorados own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Arcos Dorados investors own include NVIDIA (NVDA), Meta Platforms (META), Broadcom (AVGO), Advanced Micro Devices (AMD), Arista Networks (ANET), Salesforce (CRM) and CrowdStrike (CRWD).

Company Calendar

• Record date for 6/27 Dividend: 6/24/2025
• Ex-Dividend for 6/27 Dividend: 6/24/2025
• Dividend Payable: 6/27/2025
• Last Earnings: 8/13/2025
• Today: 9/22/2025
• Record date for 9/26 Dividend: 9/23/2025
• Ex-Dividend for 9/26 Dividend: 9/23/2025
• Dividend Payable: 9/26/2025
• Next Earnings (Estimated): 11/12/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Retail/Wholesale
• Industry: RETAIL - RESTRNTS
• Sub-Industry: Restaurants, Hotels, Motels
• Current Symbol: NYSE:ARCO
• CIK: 1508478
• Web: www.arcosdorados.com
• Phone: (982) 626-3000
• Fax: 598 2626-3018
• Employees: 98,615
• Year Founded: 2007

Price Target and Rating

• Average Price Target for Arcos Dorados: $8.80
• High Price Target: $8.80
• Low Price Target: $8.80
• Potential Upside/Downside: +27.6%
• Consensus Rating: Hold
• Rating Score (0-4): 2.00
• Research Coverage: 1 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.63
• Trailing P/E Ratio: 10.94
• Forward P/E Ratio: 10.94
• P/E Growth: 1.31
• Net Income: $148.76 million
• Net Margins: 2.89%
• Pretax Margin: 5.21%
• Return on Equity: 24.54%
• Return on Assets: 4.10%

Debt

• Debt-to-Equity Ratio: 1.62
• Current Ratio: 0.80
• Quick Ratio: 0.73

Sales & Book Value

• Annual Sales: $4.47 billion
• Price / Sales: 0.32
• Cash Flow: $1.59 per share
• Price / Cash Flow: 4.33
• Book Value: $2.42 per share
• Price / Book: 2.85

Miscellaneous

• Outstanding Shares: 210,650,000
• Free Float: N/A
• Market Cap: $1.45 billion
• Optionable: Optionable
• Beta: 0.63