Arcos Dorados (ARCO) Stock Price, News & Analysis

Company Overview

Arcos Dorados Holdings Inc. is the largest independent McDonald’s franchisee in the world and operates McDonald’s restaurants across Latin America and the Caribbean. The company holds the exclusive right to own, operate and franchise McDonald’s restaurants in numerous markets throughout the region.

Its restaurants offer McDonald’s core menu of hamburgers, cheeseburgers, chicken products, french fries, breakfast items, beverages and desserts, along with regionally adapted products. Arcos Dorados also serves customers through drive-thru locations, delivery, mobile ordering and other digital channels.

Arcos Dorados was established in 2007 following the acquisition of McDonald’s operations in Latin America from McDonald’s Corporation. Its markets include Brazil, Argentina, Mexico, Colombia, Chile, Peru, Uruguay, Ecuador, Venezuela, Costa Rica, Panama, Paraguay and other countries in the region. The company is headquartered in Montevideo, Uruguay, and operates through company-owned restaurants and a network of franchisees.

Key Stats

• Today's Range: $7.71 to $7.95
• 50-Day Range: $7.69 to $8.48
• 52-Week Range: $6.54 to $9.75
• Volume: 1.04 million shs
• Average Volume: 935,192 shs
• Market Capitalization: $1.64 billion
• P/E Ratio: 6.39
• Dividend Yield: 1.54%
• Price Target: $10.50
• Consensus Rating: Moderate Buy

Arcos Dorados Stock Analysis - MarketRank™

Arcos Dorados scored higher than 86% of companies evaluated by MarketBeat, and ranked 138th out of 483 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: 3.9 / 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 34.8% upside from its current price of $7.79.

Amount of Analyst Coverage

Arcos Dorados has only been the subject of 3 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 6.39, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 42.24.

Price to Earnings Ratio vs. Sector

The P/E ratio of Arcos Dorados is 6.39, which means that it is trading at a less expensive P/E ratio than the Consumer Discretionary sector average P/E ratio of about 42.38.

Price to Book Value per Share Ratio

Arcos Dorados has a P/B Ratio of 2.12. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 4.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

1.41% 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 2.85, 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 0.95%, indicating that investor sentiment is improving.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

Arcos Dorados pays a meaningful dividend of 1.51%, 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 9.84%. 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 13.95% next year. This indicates that Arcos Dorados will be able to sustain or increase its dividend.

News and Social Media

• Score: 0.6 / 5
• News Sentiment: N/A

Search Interest

Only 1 people have searched for ARCO on MarketBeat in the last 30 days. This is a decrease of -86% compared to the previous 30 days.

MarketBeat Follows

1 people have added Arcos Dorados to their MarketBeat watchlist in the last 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

• Record date for 6/26 Dividend: 6/22/2026
• Ex-Dividend for 6/26 Dividend: 6/22/2026
• Dividend Payable: 6/26/2026
• Last Earnings: 8/14/2026
• Today: 9/15/2026
• Record date for 9/25 Dividend: 9/21/2026
• Ex-Dividend for 9/25 Dividend: 9/21/2026
• Dividend Payable: 9/25/2026
• Investor Day 2026: 10/01/2026
• 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: +34.8%
• 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: 6.39
• Forward P/E Ratio: 9.86
• 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: $4.68 billion
• Price / Sales: 0.35
• Cash Flow: $1.17 per share
• Price / Cash Flow: 6.68
• Book Value: $3.67 per share
• Price / Book: 2.12

Miscellaneous

• Outstanding Shares: 210,660,000
• Free Float: N/A
• Market Cap: $1.64 billion
• Optionable: Optionable
• Beta: 0.49