Arcos Dorados (ARCO) Stock Price, News & Analysis

Company Overview

Arcos Dorados Holdings Inc. is the largest independent McDonald’s franchisee in Latin America and the Caribbean, operating under the iconic golden arches brand. As the exclusive operator, franchiser and licensee of McDonald’s restaurants in the region, the company oversees the end-to-end management of quick‐service dining outlets. Its primary business activities include restaurant operations, franchising and licensing, with a focus on delivering consistent, high‐quality food and customer service in each market it serves.

Since its founding in 2007, Arcos Dorados has built a strong track record of expanding and modernizing its restaurant network. The company offers the core McDonald’s menu—burgers, fries, salads, breakfast items and beverages—while tailoring product offerings to local tastes through specialty sandwiches, regional desserts and seasonal promotions. It has also invested in digital initiatives such as mobile ordering, self‐service kiosks and delivery partnerships to enhance convenience and meet evolving consumer preferences.

Arcos Dorados operates in over 20 countries and territories across Latin America and the Caribbean, including key markets such as Brazil, Argentina, Mexico and Puerto Rico. The company manages a mix of company‐owned and franchised restaurants, providing support and training to franchisees on restaurant operations, marketing, supply chain management and customer experience standards. Its regional footprint enables economies of scale in sourcing, distribution and digital infrastructure, while allowing for local adaptation in menu innovation and store design.

Led by a seasoned executive team, Arcos Dorados emphasizes sustainable growth and corporate responsibility. Management has prioritized initiatives around responsible sourcing, waste reduction and energy efficiency, as well as community engagement programs focusing on education and nutrition. Through ongoing investments in technology, supply chain resilience and human capital development, the company aims to strengthen its market leadership and deliver long‐term value to stakeholders.

Key Stats

• Today's Range: $7.30 to $7.55
• 50-Day Range: $7.32 to $8.14
• 52-Week Range: $6.66 to $10.55
• Volume: 1.80 million shs
• Average Volume: 1.42 million shs
• Market Capitalization: $1.55 billion
• P/E Ratio: 11.30
• Dividend Yield: 3.27%
• Price Target: $8.80
• Consensus Rating: Hold

Arcos Dorados Stock Analysis - MarketRank™

Arcos Dorados scored higher than 65% of companies evaluated by MarketBeat, and ranked 113th out of 213 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: 2.0 / 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.

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 11.30, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 26.26.

Price to Earnings Ratio vs. Sector

The P/E ratio of Arcos Dorados is 11.30, which means that it is trading at a less expensive P/E ratio than the Retail/Wholesale sector average P/E ratio of about 29.81.

Price to Book Value per Share Ratio

Arcos Dorados has a P/B Ratio of 3.03. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

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

Percentage of Shares Shorted

2.63% 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 increased by 23.74%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

Arcos Dorados pays a meaningful dividend of 3.16%, higher than 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 36.92%. 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

2.63% 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 increased by 23.74%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.2 / 5
• News Sentiment: N/A

News Sentiment

Arcos Dorados has a news sentiment score of 0.92. 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 1 news article for Arcos Dorados this week, compared to 4 articles on an average week.

Search Interest

1 people have searched for ARCO on MarketBeat in the last 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 increased by 0.9% and is now trading at $7.3420.

How were Arcos Dorados' earnings last quarter?

Arcos Dorados Holdings Inc. (NYSE:ARCO) issued its quarterly earnings data on Wednesday, May, 14th. The restaurant operator reported $0.07 earnings per share for the quarter, missing analysts' consensus estimates of $0.13 by $0.06. The business's revenue was down .4% on a year-over-year basis.
Read the conference call transcript.

Who are Arcos Dorados' major shareholders?

Top institutional shareholders of Arcos Dorados include Perpetual Ltd (0.83%), Hedges Asset Management LLC (0.12%), Sapient Capital LLC (0.12%) and Harbour Capital Advisors LLC (0.04%).

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

• Last Earnings: 5/14/2025
• Ex-Dividend for 6/27 Dividend: 6/24/2025
• Record date for 6/27 Dividend: 6/25/2025
• Dividend Payable: 6/27/2025
• Today: 7/14/2025
• Next Earnings (Estimated): 8/13/2025
• 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: N/A

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: +18.4%
• Consensus Rating: Hold
• Rating Score (0-4): 2.00
• Research Coverage: 1 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.65
• Trailing P/E Ratio: 11.41
• Forward P/E Ratio: 11.80
• P/E Growth: N/A
• Net Income: $148.76 million
• Net Margins: 3.00%
• Pretax Margin: 5.33%
• Return on Equity: 26.70%
• Return on Assets: 4.39%

Debt

• Debt-to-Equity Ratio: 1.80
• Current Ratio: 0.86
• Quick Ratio: 0.81

Sales & Book Value

• Annual Sales: $4.47 billion
• Price / Sales: 0.35
• Cash Flow: $1.52 per share
• Price / Cash Flow: 4.88
• Book Value: $2.42 per share
• Price / Book: 3.07

Miscellaneous

• Outstanding Shares: 210,655,000
• Free Float: N/A
• Market Cap: $1.57 billion
• Optionable: Optionable
• Beta: 0.63