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Also traded in: Germany, Mexico

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 0.21
ARCO's Cash to Debt is ranked lower than
70% of the 299 Companies
in the Global Restaurants industry.

( Industry Median: 0.56 vs. ARCO: 0.21 )
Ranked among companies with meaningful Cash to Debt only.
ARCO' s Cash to Debt Range Over the Past 10 Years
Min: 0.09  Med: 0.27 Max: N/A
Current: 0.21
Equity to Asset 0.23
ARCO's Equity to Asset is ranked lower than
85% of the 293 Companies
in the Global Restaurants industry.

( Industry Median: 0.50 vs. ARCO: 0.23 )
Ranked among companies with meaningful Equity to Asset only.
ARCO' s Equity to Asset Range Over the Past 10 Years
Min: 0.19  Med: 0.31 Max: 0.39
Current: 0.23
0.19
0.39
Interest Coverage 2.42
ARCO's Interest Coverage is ranked lower than
89% of the 265 Companies
in the Global Restaurants industry.

( Industry Median: 22.92 vs. ARCO: 2.42 )
Ranked among companies with meaningful Interest Coverage only.
ARCO' s Interest Coverage Range Over the Past 10 Years
Min: 0.97  Med: 3.94 Max: 10.22
Current: 2.42
0.97
10.22
F-Score: 7
Z-Score: 2.89
M-Score: -2.19
WACC vs ROIC
11.43%
11.90%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 5.59
ARCO's Operating margin (%) is ranked higher than
53% of the 299 Companies
in the Global Restaurants industry.

( Industry Median: 5.10 vs. ARCO: 5.59 )
Ranked among companies with meaningful Operating margin (%) only.
ARCO' s Operating margin (%) Range Over the Past 10 Years
Min: 1.94  Med: 6.23 Max: 7.76
Current: 5.59
1.94
7.76
Net-margin (%) 1.02
ARCO's Net-margin (%) is ranked lower than
69% of the 299 Companies
in the Global Restaurants industry.

( Industry Median: 2.89 vs. ARCO: 1.02 )
Ranked among companies with meaningful Net-margin (%) only.
ARCO' s Net-margin (%) Range Over the Past 10 Years
Min: -2.99  Med: 3 Max: 3.51
Current: 1.02
-2.99
3.51
ROE (%) 9.07
ARCO's ROE (%) is ranked higher than
52% of the 284 Companies
in the Global Restaurants industry.

( Industry Median: 8.84 vs. ARCO: 9.07 )
Ranked among companies with meaningful ROE (%) only.
ARCO' s ROE (%) Range Over the Past 10 Years
Min: -18.99  Med: 16.06 Max: 21.19
Current: 9.07
-18.99
21.19
ROA (%) 1.94
ARCO's ROA (%) is ranked lower than
65% of the 300 Companies
in the Global Restaurants industry.

( Industry Median: 3.97 vs. ARCO: 1.94 )
Ranked among companies with meaningful ROA (%) only.
ARCO' s ROA (%) Range Over the Past 10 Years
Min: -5.5  Med: 5.4 Max: 6.49
Current: 1.94
-5.5
6.49
ROC (Joel Greenblatt) (%) 18.14
ARCO's ROC (Joel Greenblatt) (%) is ranked higher than
50% of the 298 Companies
in the Global Restaurants industry.

( Industry Median: 18.14 vs. ARCO: 18.14 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
ARCO' s ROC (Joel Greenblatt) (%) Range Over the Past 10 Years
Min: 6.06  Med: 18.88 Max: 26.32
Current: 18.14
6.06
26.32
Revenue Growth (3Y)(%) -7.10
ARCO's Revenue Growth (3Y)(%) is ranked lower than
88% of the 236 Companies
in the Global Restaurants industry.

( Industry Median: 4.40 vs. ARCO: -7.10 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
ARCO' s Revenue Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: -3.15 Max: 15.4
Current: -7.1
0
15.4
EBITDA Growth (3Y)(%) -14.80
ARCO's EBITDA Growth (3Y)(%) is ranked lower than
82% of the 214 Companies
in the Global Restaurants industry.

( Industry Median: 4.70 vs. ARCO: -14.80 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
ARCO' s EBITDA Growth (3Y)(%) Range Over the Past 10 Years
Min: 0  Med: -15.2 Max: 24.6
Current: -14.8
0
24.6
» ARCO's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow
Oprt. Cash Flow & Net Income

» Details

Guru Trades

Q3 2015

ARCO Guru Trades in Q3 2015

Third Avenue Management 1,743,763 sh (+26.22%)
Barrow, Hanley, Mewhinney & Strauss 99,160 sh (+17.31%)
Charles Brandes 13,001,985 sh (+6.09%)
Bill Gates 3,060,500 sh (unchged)
Jeff Auxier 19,998 sh (unchged)
» More
Q4 2015

ARCO Guru Trades in Q4 2015

Jim Simons 24,462 sh (New)
Jeff Auxier 66,798 sh (+234.02%)
Barrow, Hanley, Mewhinney & Strauss 159,130 sh (+60.48%)
Charles Brandes 15,331,927 sh (+17.92%)
Bill Gates 3,060,500 sh (unchged)
Third Avenue Management 1,741,451 sh (-0.13%)
» More
Q1 2016

ARCO Guru Trades in Q1 2016

Jim Simons 739,369 sh (+2922.52%)
Jeff Auxier 75,298 sh (+12.72%)
Bill Gates 3,060,500 sh (unchged)
Barrow, Hanley, Mewhinney & Strauss 159,130 sh (unchged)
Charles Brandes 15,182,089 sh (-0.98%)
Third Avenue Management 1,617,289 sh (-7.13%)
» More
Q2 2016

ARCO Guru Trades in Q2 2016

Jeff Auxier 93,298 sh (+23.91%)
Barrow, Hanley, Mewhinney & Strauss 194,830 sh (+22.43%)
Bill Gates 3,060,500 sh (unchged)
Jim Simons Sold Out
Third Avenue Management 1,615,590 sh (-0.11%)
Charles Brandes 14,820,196 sh (-2.38%)
» More
» Details

Insider Trades

Latest Guru Trades with ARCO

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Business Description

Industry: Restaurants » Restaurants
Compare:NAS:PLKI, NYSE:FCPT, NYSE:KKD, NYSE:SHAK, NAS:SONC, NYSE:DIN, NAS:BJRI, NYSE:BH, NAS:WING, NAS:DENN, NAS:BOBE, NYSE:ZOES, OTCPK:MTYFF, NAS:RRGB, NAS:FRGI, NAS:BOJA, NAS:CHUY, NAS:LOCO, NAS:PLAY, NAS:RUTH » details
Traded in other countries:AD8.Germany, ARCO N.Mexico,
Arcos Dorados Holdings Inc operates and franchises McDonald's restaurants. It operates in the QSR sub-segment of the fast food segment of the Latin American and Caribbean food service industry.

Arcos Dorados Holdings Inc was incorporated on December 9, 2010 under the laws of the British Virgin Islands as a direct, wholly-owned subsidiary of Arcos Dorados Limited, the prior holding company for the Arcos Dorados business. The Company operates its McDonald's-branded restaurants under two basic structures: Company-operated restaurants operated by it and franchised restaurants operated by franchisees. As of December 31, 2013, it operated or franchised 2062 McDonald's branded restaurants, which represented 7.2% of McDonald's total franchised restaurants worldwide. It divides its operations into four geographical divisions: Brazil; the Caribbean division, consisting of Aruba, Colombia, Curaçao, French Guiana, Guadeloupe, Martinique, Puerto Rico, Trinidad and Tobago, the U.S. Virgin Islands of St. Croix and St. Thomas and Venezuela; North Latin America division, or NOLAD, consisting of Costa Rica, Mexico and Panama; and South Latin America division, or SLAD, consisting of Argentina, Chile, Ecuador, Peru and Uruguay. It conducts substantially all its business through its indirect, wholly-owned Dutch subsidiary Arcos Dorados B.V. As of December 31, 2013, 39.4% of our restaurants were located in Brazil, 18.3% in South Latin America division, or SLAD, 24.6% in North Latin America division, or NOLAD and 17.7% in the Caribbean division. The Company's main competitors include Burger King, Yum! Brands (which operates KFC restaurants and Pizza Hut and Pizza Hut Express restaurants) and Subway. In Brazil, it also compete with Habib's, a Brazilian QSR chain that focuses on Middle Eastern food, and Bob's, a mainly Brazilian QSR chain that focuses on hamburger product offerings.

Ratios

vs
industry
vs
history
P/E(ttm) 42.63
ARCO's P/E(ttm) is ranked lower than
77% of the 224 Companies
in the Global Restaurants industry.

( Industry Median: 24.21 vs. ARCO: 42.63 )
Ranked among companies with meaningful P/E(ttm) only.
ARCO' s P/E(ttm) Range Over the Past 10 Years
Min: 19.96  Med: 36.32 Max: 59.29
Current: 42.63
19.96
59.29
PE(NRI) 42.63
ARCO's PE(NRI) is ranked lower than
78% of the 225 Companies
in the Global Restaurants industry.

( Industry Median: 24.17 vs. ARCO: 42.63 )
Ranked among companies with meaningful PE(NRI) only.
ARCO' s PE(NRI) Range Over the Past 10 Years
Min: 19.75  Med: 36.43 Max: 59.42
Current: 42.63
19.75
59.42
P/B 3.47
ARCO's P/B is ranked lower than
64% of the 278 Companies
in the Global Restaurants industry.

( Industry Median: 2.57 vs. ARCO: 3.47 )
Ranked among companies with meaningful P/B only.
ARCO' s P/B Range Over the Past 10 Years
Min: 1.63  Med: 3.52 Max: 9.26
Current: 3.47
1.63
9.26
P/S 0.42
ARCO's P/S is ranked higher than
85% of the 294 Companies
in the Global Restaurants industry.

( Industry Median: 0.90 vs. ARCO: 0.42 )
Ranked among companies with meaningful P/S only.
ARCO' s P/S Range Over the Past 10 Years
Min: 0.15  Med: 0.59 Max: 1.77
Current: 0.42
0.15
1.77
PFCF 34.00
ARCO's PFCF is ranked lower than
71% of the 118 Companies
in the Global Restaurants industry.

( Industry Median: 23.88 vs. ARCO: 34.00 )
Ranked among companies with meaningful PFCF only.
ARCO' s PFCF Range Over the Past 10 Years
Min: 5.53  Med: 29.51 Max: 352.1
Current: 34
5.53
352.1
POCF 9.82
ARCO's POCF is ranked higher than
55% of the 166 Companies
in the Global Restaurants industry.

( Industry Median: 10.94 vs. ARCO: 9.82 )
Ranked among companies with meaningful POCF only.
ARCO' s POCF Range Over the Past 10 Years
Min: 2.51  Med: 10.96 Max: 21.7
Current: 9.82
2.51
21.7
EV-to-EBIT 10.46
ARCO's EV-to-EBIT is ranked higher than
78% of the 238 Companies
in the Global Restaurants industry.

( Industry Median: 17.73 vs. ARCO: 10.46 )
Ranked among companies with meaningful EV-to-EBIT only.
ARCO' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.9  Med: 14.3 Max: 47.5
Current: 10.46
8.9
47.5
EV-to-EBITDA 6.34
ARCO's EV-to-EBITDA is ranked higher than
88% of the 255 Companies
in the Global Restaurants industry.

( Industry Median: 12.98 vs. ARCO: 6.34 )
Ranked among companies with meaningful EV-to-EBITDA only.
ARCO' s EV-to-EBITDA Range Over the Past 10 Years
Min: 4.9  Med: 9.45 Max: 31.5
Current: 6.34
4.9
31.5
Current Ratio 0.84
ARCO's Current Ratio is ranked lower than
63% of the 293 Companies
in the Global Restaurants industry.

( Industry Median: 1.08 vs. ARCO: 0.84 )
Ranked among companies with meaningful Current Ratio only.
ARCO' s Current Ratio Range Over the Past 10 Years
Min: 0.55  Med: 0.91 Max: 1.28
Current: 0.84
0.55
1.28
Quick Ratio 0.75
ARCO's Quick Ratio is ranked lower than
61% of the 293 Companies
in the Global Restaurants industry.

( Industry Median: 0.96 vs. ARCO: 0.75 )
Ranked among companies with meaningful Quick Ratio only.
ARCO' s Quick Ratio Range Over the Past 10 Years
Min: 0.48  Med: 0.82 Max: 1.18
Current: 0.75
0.48
1.18
Days Inventory 5.13
ARCO's Days Inventory is ranked higher than
80% of the 284 Companies
in the Global Restaurants industry.

( Industry Median: 11.42 vs. ARCO: 5.13 )
Ranked among companies with meaningful Days Inventory only.
ARCO' s Days Inventory Range Over the Past 10 Years
Min: 5.13  Med: 8.35 Max: 8.87
Current: 5.13
5.13
8.87
Days Sales Outstanding 12.74
ARCO's Days Sales Outstanding is ranked lower than
64% of the 250 Companies
in the Global Restaurants industry.

( Industry Median: 9999.00 vs. ARCO: 12.74 )
Ranked among companies with meaningful Days Sales Outstanding only.
ARCO' s Days Sales Outstanding Range Over the Past 10 Years
Min: 3.27  Med: 7.12 Max: 12.74
Current: 12.74
3.27
12.74
Days Payable 26.68
ARCO's Days Payable is ranked lower than
69% of the 232 Companies
in the Global Restaurants industry.

( Industry Median: 38.78 vs. ARCO: 26.68 )
Ranked among companies with meaningful Days Payable only.
ARCO' s Days Payable Range Over the Past 10 Years
Min: 20.57  Med: 26.83 Max: 33.31
Current: 26.68
20.57
33.31

Buy Back

vs
industry
vs
history
Dividend Growth (3y) -100.00
ARCO's Dividend Growth (3y) is ranked lower than
99% of the 113 Companies
in the Global Restaurants industry.

( Industry Median: 8.70 vs. ARCO: -100.00 )
Ranked among companies with meaningful Dividend Growth (3y) only.
ARCO' s Dividend Growth (3y) Range Over the Past 10 Years
Min: 0  Med: -50 Max: 10
Current: -100
0
10
Yield on cost (5-Year) 1.64
ARCO's Yield on cost (5-Year) is ranked lower than
53% of the 339 Companies
in the Global Restaurants industry.

( Industry Median: 2.36 vs. ARCO: 1.64 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
ARCO' s Yield on cost (5-Year) Range Over the Past 10 Years
Min: 0.25  Med: 2.15 Max: 4.7
Current: 1.64
0.25
4.7
3-Year Average Share Buyback Ratio -0.20
ARCO's 3-Year Average Share Buyback Ratio is ranked higher than
60% of the 177 Companies
in the Global Restaurants industry.

( Industry Median: -0.70 vs. ARCO: -0.20 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
ARCO' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -0.2  Med: 2.25 Max: 0
Current: -0.2
-0.2
0

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 4.02
ARCO's Price/Tangible Book is ranked lower than
69% of the 229 Companies
in the Global Restaurants industry.

( Industry Median: 2.78 vs. ARCO: 4.02 )
Ranked among companies with meaningful Price/Tangible Book only.
ARCO' s Price/Tangible Book Range Over the Past 10 Years
Min: 2.26  Med: 4.06 Max: 8.2
Current: 4.02
2.26
8.2
Price/Projected FCF 9.51
ARCO's Price/Projected FCF is ranked lower than
93% of the 163 Companies
in the Global Restaurants industry.

( Industry Median: 2.06 vs. ARCO: 9.51 )
Ranked among companies with meaningful Price/Projected FCF only.
ARCO' s Price/Projected FCF Range Over the Past 10 Years
Min: 7.07  Med: 9.32 Max: 12.95
Current: 9.51
7.07
12.95
Price/Median PS Value 0.69
ARCO's Price/Median PS Value is ranked higher than
82% of the 273 Companies
in the Global Restaurants industry.

( Industry Median: 1.13 vs. ARCO: 0.69 )
Ranked among companies with meaningful Price/Median PS Value only.
ARCO' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.31  Med: 1.06 Max: 2.47
Current: 0.69
0.31
2.47
Price/Graham Number 2.77
ARCO's Price/Graham Number is ranked lower than
74% of the 165 Companies
in the Global Restaurants industry.

( Industry Median: 1.90 vs. ARCO: 2.77 )
Ranked among companies with meaningful Price/Graham Number only.
ARCO' s Price/Graham Number Range Over the Past 10 Years
Min: 1.87  Med: 2.63 Max: 4.19
Current: 2.77
1.87
4.19
Earnings Yield (Greenblatt) (%) 9.58
ARCO's Earnings Yield (Greenblatt) (%) is ranked higher than
82% of the 291 Companies
in the Global Restaurants industry.

( Industry Median: 4.70 vs. ARCO: 9.58 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
ARCO' s Earnings Yield (Greenblatt) (%) Range Over the Past 10 Years
Min: 2.1  Med: 7 Max: 11.2
Current: 9.58
2.1
11.2
Forward Rate of Return (Yacktman) (%) -8.06
ARCO's Forward Rate of Return (Yacktman) (%) is ranked lower than
77% of the 164 Companies
in the Global Restaurants industry.

( Industry Median: 7.06 vs. ARCO: -8.06 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
ARCO' s Forward Rate of Return (Yacktman) (%) Range Over the Past 10 Years
Min: -10.3  Med: -5 Max: 0.9
Current: -8.06
-10.3
0.9

More Statistics

Revenue (TTM) (Mil) $2,864
EPS (TTM) $ 0.13
Beta2.27
Short Percentage of Float0.17%
52-Week Range $2.16 - 5.99
Shares Outstanding (Mil)210.71
» More Articles for NYSE:ARCO

Headlines

Articles On GuruFocus.com
Arcos Dorados Is A Buy Despite Weak Earnings May 26 2015 
The Best Stocks With a Dividend Yield of At Least 4% Feb 11 2015 
Charles Brandes' Top Buys During Q4 Feb 11 2015 
A McDonald's Franchisee Feb 27 2014 
5-Year Lows: Athlon Energy Inc., Arcos Dorados Holdings Inc., Brookfield Property Partners LP, Chamb Jan 13 2014 
Arcos Dorados: Happy Meals in Latin America Nov 28 2012 
6 Mid-Cap Hot Picks in the Last Three Months Nov 27 2012 
Jeremy Grantham Goes For Merger Arbitrage and South America in Top Q3 Investments Nov 13 2012 
Chase Coleman Buys Facebook and Raises Stakes in 11 Other Companies Aug 21 2012 
The Best Dividends on April 30, 2012 Apr 27 2012 

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Arcos Dorados Holdings, Inc. :ARCO-US: Earnings Analysis: Q2, 2016 By the Numbers : August 10, 2016 Aug 10 2016
Edited Transcript of ARCO earnings conference call or presentation 3-Aug-16 2:00pm GMT Aug 03 2016
Arcos Dorados posts 2Q profit Aug 03 2016
Arcos Dorados posts 2Q profit Aug 03 2016
Arcos Dorados Reports Second Quarter 2016 Financial Results Aug 03 2016
Q2 2016 Arcos Dorados Holdings Inc Earnings Release - Before Market Open Aug 03 2016
McDonald’s Menu Initiatives Slipping Jul 28 2016
Arcos Dorados to Bring the Spirit of the Olympic Games to Latin America Jul 27 2016
McDonald’s Stops Selling Big Mac in Venezuela due to Bread Shortage Jul 21 2016
An ETF to Capture Consumers’ Preference for Spending on Experiences Jul 19 2016
An ETF to Take a BITE Into Consumer Spending Jul 18 2016
ETF’s with exposure to Arcos Dorados Holdings, Inc. : July 18, 2016 Jul 18 2016
Arcos Dorados (ARCO) Worth a Look: Stock Up 6% in Session Jul 15 2016
Arcos Dorados (ARCO) Stock Is the ‘Chart of the Day’ Jul 14 2016
Arcos Dorados Repays in Full Brazilian Real Denominated Senior Notes Due 2016 Jul 14 2016
ETF’s with exposure to Arcos Dorados Holdings, Inc. : July 1, 2016 Jul 01 2016
Zacks.com featured highlights: Arcos Dorados Holdings, Corcept Therapeutics, Exelixis, Hecla Mining... Jun 29 2016
SEIU Alerts Buyers about McDonald's Refranchising Plans Jun 21 2016
U.S. union takes aim at potential McDonald's deals in Asia Jun 20 2016
Arcos Dorados Holdings Inc. Announces Early Settlement of Cash Tender Offer for Up to U.S.$80... Jun 16 2016
Arcos Dorados posts 1Q profit May 04 2016
Arcos Dorados posts 4Q profit Mar 16 2016
Arcos Dorados reports 3Q loss Nov 04 2015
Arcos Dorados posts 2Q profit Aug 11 2015
Arcos Dorados reports 1Q loss May 12 2015
Arcos Dorados posts 3Q profit Nov 04 2014

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