Arcos Dorados (ARCO) Stock Price, News & Analysis

Company Overview

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 Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S. Virgin Islands of St. Croix and St. Thomas, and Venezuela. The company was founded in 2007 and is based in Montevideo, Uruguay.

Key Stats

• Today's Range: $7.25 to $7.59
• 50-Day Range: $7.23 to $9.93
• 52-Week Range: $7.20 to $13.20
• Volume: 1.44 million shs
• Average Volume: 1.24 million shs
• Market Capitalization: $1.58 billion
• P/E Ratio: 10.71
• Dividend Yield: 3.20%
• Price Target: $12.00
• Consensus Rating: Buy

Arcos Dorados Stock Analysis - MarketRank™

Arcos Dorados scored higher than 85% of companies evaluated by MarketBeat, and ranked 64th out of 219 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: 3.5 / 5
• Analyst Rating: Buy

Consensus Rating

Arcos Dorados has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 1 buy rating, no hold ratings, and no sell ratings.

Amount of Analyst Coverage

Arcos Dorados has received no research coverage in the past 90 days.

Earnings and Valuation

• Score: 3.1 / 5
• Proj. Earnings Growth: 23.08%

Earnings Growth

Earnings for Arcos Dorados are expected to grow by 23.08% in the coming year, from $0.65 to $0.80 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Arcos Dorados is 10.71, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 115.15.

Price to Earnings Ratio vs. Sector

The P/E ratio of Arcos Dorados is 10.71, which means that it is trading at a less expensive P/E ratio than the Retail/Wholesale sector average P/E ratio of about 108.37.

Price to Earnings Growth Ratio

Arcos Dorados has a PEG Ratio of 3.69. 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 3.06. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

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

Percentage of Shares Shorted

3.34% 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 3.5, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Arcos Dorados has recently decreased by 3.71%, indicating that investor sentiment is improving.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

Arcos Dorados pays a meaningful dividend of 3.03%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Arcos Dorados does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Arcos Dorados is 34.29%. 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 30.00% 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

3.34% 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 3.5, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Arcos Dorados has recently decreased by 3.71%, indicating that investor sentiment is improving.

News and Social Media

• Score: 2.0 / 5
• News Sentiment: 0.53

News Sentiment

Arcos Dorados has a news sentiment score of 0.53. 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 0.70 average news sentiment score of Retail/Wholesale companies.

News Coverage This Week

MarketBeat has tracked 6 news articles for Arcos Dorados this week, compared to 4 articles on an average week.

Search Interest

Only 2 people have searched for ARCO on MarketBeat in the last 30 days. This is a decrease of -67% compared to the previous 30 days.

MarketBeat Follows

Only 1 people have added Arcos Dorados to their MarketBeat watchlist in the last 30 days. This is a decrease of 0% 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 $12.69 at the beginning of 2024. Since then, ARCO stock has decreased by 40.9% and is now trading at $7.50.
View the best growth stocks for 2024 here.

How were Arcos Dorados' earnings last quarter?

Arcos Dorados Holdings Inc. (NYSE:ARCO) issued its quarterly earnings data on Wednesday, November, 13th. The restaurant operator reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.01. Arcos Dorados's quarterly revenue was up .8% on a year-over-year basis.

Who are Arcos Dorados' major shareholders?

Top institutional investors of Arcos Dorados include Private Management Group Inc. (1.12%), Perpetual Ltd (0.78%), BNP Paribas Financial Markets (0.71%) and Franklin Resources Inc. (0.66%).

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.
Compare Top Brokerages Here.

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

• Ex-Dividend for 9/27 Dividend: 9/24/2024
• Dividend Payable: 9/27/2024
• Last Earnings: 11/13/2024
• Today: 12/21/2024
• Ex-Dividend for 12/27 Dividend: 12/23/2024
• Dividend Payable: 12/27/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Retail/Wholesale
• Industry: Eating places
• Sub-Industry: N/A
• Current Symbol: NYSE:ARCO
• CUSIP: N/A
• CIK: 1508478
• Web: www.arcosdorados.com
• Phone: (982) 626-3000
• Fax: 598 2626-3018
• Employees: 100,795
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $12.00
• High Stock Price Target: $12.00
• Low Stock Price Target: $12.00
• Potential Upside/Downside: +60.0%
• Consensus Rating: Buy
• Rating Score (0-4): 3.00
• Research Coverage: 1 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $0.70
• Trailing P/E Ratio: 10.71
• Forward P/E Ratio: 11.54
• P/E Growth: 3.69
• Net Income: $181.27 million
• Net Margins: 3.25%
• Pretax Margin: 5.14%
• Return on Equity: 29.74%
• Return on Assets: 4.99%

Debt

• Debt-to-Equity Ratio: 1.40
• Current Ratio: 0.63
• Quick Ratio: 0.57

Sales & Book Value

• Annual Sales: $4.50 billion
• Price / Sales: 0.35
• Cash Flow: $1.49 per share
• Price / Cash Flow: 5.05
• Book Value: $2.45 per share
• Price / Book: 3.06

Miscellaneous

• Outstanding Shares: 210,655,000
• Free Float: N/A
• Market Cap: $1.58 billion
• Optionable: Optionable
• Beta: 1.12