Arcos Dorados (ARCO) Stock Price, News & Analysis

Company Overview

Arcos Dorados Holdings Inc. is the largest independent McDonald’s franchisee in the world and the exclusive master franchisee for McDonald’s in Latin America and the Caribbean. The company operates and franchises McDonald’s restaurants across 20 countries and territories, serving customers through company-operated and franchised locations.

Its restaurant business offers McDonald’s products including hamburgers, chicken sandwiches, French fries, breakfast items, desserts, soft drinks and McCafé beverages. Arcos Dorados also provides services such as drive-thru, delivery, digital ordering and mobile-app-based customer engagement, depending on the market.

Arcos Dorados was formed in 2007 after acquiring McDonald’s Latin American operations. Its markets include Brazil, Argentina, Mexico, Puerto Rico and other countries in South America, Central America and the Caribbean. The company is headquartered in Montevideo, Uruguay, and its shares trade on the New York Stock Exchange under the symbol ARCO.

Key Stats

• Today's Range: $7.95 to $8.11
• 50-Day Range: $6.89 to $8.27
• 52-Week Range: $6.67 to $9.75
• Volume: 2.00 million shs
• Average Volume: 2.43 million shs
• Market Capitalization: $1.70 billion
• P/E Ratio: 6.60
• Dividend Yield: 3.48%
• Price Target: $10.50
• Consensus Rating: Moderate Buy

Arcos Dorados Stock Analysis - MarketRank™

Arcos Dorados scored higher than 91% of companies evaluated by MarketBeat, and ranked 81st out of 482 stocks in the consumer discretionary sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.7 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Arcos Dorados has received a consensus rating of Moderate Buy. The company's average rating score is 2.60, and is based on no strong buy ratings, 3 buy ratings, 2 hold ratings, and no sell ratings.

Upside Potential

Arcos Dorados has a consensus price target of $10.50, representing about 30.4% upside from its current price of $8.05.

Amount of Analyst Coverage

Arcos Dorados has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 8.86%

Earnings Growth

Earnings for Arcos Dorados are expected to grow by 8.86% in the coming year, from $0.79 to $0.86 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Arcos Dorados is 6.60, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 36.32.

Price to Earnings Ratio vs. Sector

The P/E ratio of Arcos Dorados is 6.60, which means that it is trading at a less expensive P/E ratio than the Consumer Discretionary sector average P/E ratio of about 42.76.

Price to Book Value per Share Ratio

Arcos Dorados has a P/B Ratio of 2.19. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.18% 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 1.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Arcos Dorados has recently decreased by 10.47%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Arcos Dorados has a dividend yield of 0.75%, which is in the bottom 25% of all stocks that pay dividends.

Dividend Growth

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

Dividend Coverage

The dividend payout ratio of Arcos Dorados is 22.95%. 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 32.56% next year. This indicates that Arcos Dorados will be able to sustain or increase its dividend.

News and Social Media

• Score: 2.7 / 5
• News Sentiment: 0.29

News Sentiment

Arcos Dorados has a news sentiment score of 0.29. 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 is a lower news sentiment than the 0.57 average news sentiment score of Consumer Discretionary companies.

News Coverage This Week

MarketBeat has tracked 5 news articles for Arcos Dorados this week, compared to 2 articles on an average week.

Search Interest

3 people have searched for ARCO on MarketBeat in the last 30 days. This is an increase of 200% compared to the previous 30 days.

Company Ownership

• Score: 0.7 / 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.

Company Calendar

• Last Earnings: 8/14/2026
• Record date for 9/25 Dividend: 9/21/2026
• Ex-Dividend for 9/25 Dividend: 9/21/2026
• Dividend Payable: 9/25/2026
• Today: 10/15/2026
• Next Earnings (Estimated): 11/18/2026
• Fiscal Year End: 12/31/2026

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Consumer Discretionary
• Industry: Hotels, Restaurants & Leisure
• Sub-Industry: Restaurants
• Current Symbol: NYSE:ARCO
• CIK: 1508478
• Web: www.arcosdorados.com
• Phone: (982) 626-3000
• Fax: 598 2626-3018
• Employees: 96,782
• Year Founded: 2007

Price Target and Rating

• Average Price Target for Arcos Dorados: $10.50
• High Price Target: $10.50
• Low Price Target: $10.50
• Potential Upside/Downside: +30.4%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.60
• Research Coverage: 5 Analysts

Profitability

• EPS (Trailing Twelve Months): $1.22
• Trailing P/E Ratio: 6.60
• Forward P/E Ratio: 10.19
• P/E Growth: N/A
• Net Income: $212.12 million
• Net Margins: 5.15%
• Pretax Margin: 8.12%
• Return on Equity: 12.50%
• Return on Assets: 2.58%

Debt

• Debt-to-Equity Ratio: 1.14
• Current Ratio: 0.88
• Quick Ratio: 0.81

Sales & Book Value

• Annual Sales: $4.98 billion
• Price / Sales: 0.34
• Cash Flow: $1.21 per share
• Price / Cash Flow: 6.65
• Book Value: $3.67 per share
• Price / Book: 2.19

Miscellaneous

• Outstanding Shares: 210,663,000
• Free Float: N/A
• Market Cap: $1.70 billion
• Optionable: Optionable
• Beta: 0.48