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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 0.32
ARCO's Cash-to-Debt is ranked lower than
64% of the 318 Companies
in the Global Restaurants industry.

( Industry Median: 0.65 vs. ARCO: 0.32 )
Ranked among companies with meaningful Cash-to-Debt only.
ARCO' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.11  Med: 0.28 Max: N/A
Current: 0.32
Equity-to-Asset 0.23
ARCO's Equity-to-Asset is ranked lower than
84% of the 315 Companies
in the Global Restaurants industry.

( Industry Median: 0.49 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 2.67
ARCO's Interest Coverage is ranked lower than
87% of the 267 Companies
in the Global Restaurants industry.

( Industry Median: 25.56 vs. ARCO: 2.67 )
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: 2.67
0.97
10.22
Piotroski F-Score: 7
Altman Z-Score: 3.45
Beneish M-Score: -2.30
WACC vs ROIC
13.29%
10.55%
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 % 6.10
ARCO's Operating Margin % is ranked higher than
56% of the 318 Companies
in the Global Restaurants industry.

( Industry Median: 5.21 vs. ARCO: 6.10 )
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: 6.1
1.94
7.76
Net Margin % 2.69
ARCO's Net Margin % is ranked lower than
53% of the 318 Companies
in the Global Restaurants industry.

( Industry Median: 2.99 vs. ARCO: 2.69 )
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: 2.69
-2.99
3.51
ROE % 24.51
ARCO's ROE % is ranked higher than
88% of the 295 Companies
in the Global Restaurants industry.

( Industry Median: 8.93 vs. ARCO: 24.51 )
Ranked among companies with meaningful ROE % only.
ARCO' s ROE % Range Over the Past 10 Years
Min: -18.99  Med: 16.06 Max: 24.51
Current: 24.51
-18.99
24.51
ROA % 5.29
ARCO's ROA % is ranked higher than
56% of the 318 Companies
in the Global Restaurants industry.

( Industry Median: 4.08 vs. ARCO: 5.29 )
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: 5.29
-5.5
6.49
ROC (Joel Greenblatt) % 21.05
ARCO's ROC (Joel Greenblatt) % is ranked higher than
54% of the 317 Companies
in the Global Restaurants industry.

( Industry Median: 18.19 vs. ARCO: 21.05 )
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: 21.05
6.06
26.32
3-Year Revenue Growth Rate -7.10
ARCO's 3-Year Revenue Growth Rate is ranked lower than
88% of the 251 Companies
in the Global Restaurants industry.

( Industry Median: 4.30 vs. ARCO: -7.10 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
ARCO' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: 0  Med: -3.15 Max: 15.4
Current: -7.1
0
15.4
3-Year EBITDA Growth Rate -14.80
ARCO's 3-Year EBITDA Growth Rate is ranked lower than
74% of the 227 Companies
in the Global Restaurants industry.

( Industry Median: 5.20 vs. ARCO: -14.80 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
ARCO' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: 0  Med: -15.2 Max: 24.6
Current: -14.8
0
24.6
GuruFocus has detected 3 Warning Signs with Arcos Dorados Holdings Inc $ARCO.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» ARCO's 10-Y Financials

Financials (Next Earnings Date: 2017-08-03 Est.)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

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
Q3 2016

ARCO Guru Trades in Q3 2016

Jim Simons 97,640 sh (New)
Bill Gates 3,060,500 sh (unchged)
Jeff Auxier 92,798 sh (-0.54%)
Barrow, Hanley, Mewhinney & Strauss 171,950 sh (-11.74%)
Third Avenue Management 1,186,027 sh (-26.59%)
Charles Brandes 8,778,811 sh (-40.76%)
» More
Q4 2016

ARCO Guru Trades in Q4 2016

Jim Simons 238,440 sh (+144.20%)
Barrow, Hanley, Mewhinney & Strauss 171,950 sh (unchged)
Bill Gates 3,060,500 sh (unchged)
Jeff Auxier 92,398 sh (-0.43%)
Third Avenue Management 1,163,100 sh (-1.93%)
Charles Brandes 7,482,978 sh (-14.76%)
» More
» Details

Insider Trades

Latest Guru Trades with ARCO

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Business Description

Industry: Restaurants » Restaurants    NAICS: 722310    SIC: 5812
Compare:NAS:PLKI, OTCPK:DPUKY, OTCPK:JDWPY, NAS:BLMN, NAS:BOBE, NYSE:SHAK, NYSE:EAT, OTCPK:ATGSF, NAS:SONC, OTCPK:MARZF, NYSE:DIN, NYSE:BH, NAS:BJRI, NAS:DENN, NAS:WING, OTCPK:MTYFF, NAS:PLAY, NAS:RRGB, NAS:BOJA, NAS:BWLD » details
Traded in other countries:AD8.Germany, ARCO N.Mexico,
Headquarter Location:
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
PE Ratio 21.35
ARCO's PE Ratio is ranked higher than
62% of the 236 Companies
in the Global Restaurants industry.

( Industry Median: 24.58 vs. ARCO: 21.35 )
Ranked among companies with meaningful PE Ratio only.
ARCO' s PE Ratio Range Over the Past 10 Years
Min: 14.59  Med: 34.02 Max: 59.42
Current: 21.35
14.59
59.42
PE Ratio without NRI 21.35
ARCO's PE Ratio without NRI is ranked higher than
61% of the 237 Companies
in the Global Restaurants industry.

( Industry Median: 24.55 vs. ARCO: 21.35 )
Ranked among companies with meaningful PE Ratio without NRI only.
ARCO' s PE Ratio without NRI Range Over the Past 10 Years
Min: 14.59  Med: 34.02 Max: 59.42
Current: 21.35
14.59
59.42
Price-to-Owner-Earnings 32.51
ARCO's Price-to-Owner-Earnings is ranked lower than
69% of the 139 Companies
in the Global Restaurants industry.

( Industry Median: 24.87 vs. ARCO: 32.51 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
ARCO' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 22.22  Med: 31.07 Max: 365.88
Current: 32.51
22.22
365.88
PB Ratio 4.74
ARCO's PB Ratio is ranked lower than
73% of the 295 Companies
in the Global Restaurants industry.

( Industry Median: 2.94 vs. ARCO: 4.74 )
Ranked among companies with meaningful PB Ratio only.
ARCO' s PB Ratio Range Over the Past 10 Years
Min: 1.63  Med: 3.58 Max: 9.26
Current: 4.74
1.63
9.26
PS Ratio 0.57
ARCO's PS Ratio is ranked higher than
76% of the 311 Companies
in the Global Restaurants industry.

( Industry Median: 1.04 vs. ARCO: 0.57 )
Ranked among companies with meaningful PS Ratio only.
ARCO' s PS Ratio Range Over the Past 10 Years
Min: 0.15  Med: 0.53 Max: 1.77
Current: 0.57
0.15
1.77
Price-to-Free-Cash-Flow 23.10
ARCO's Price-to-Free-Cash-Flow is ranked higher than
52% of the 122 Companies
in the Global Restaurants industry.

( Industry Median: 25.71 vs. ARCO: 23.10 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
ARCO' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 5.53  Med: 26.21 Max: 352.1
Current: 23.1
5.53
352.1
Price-to-Operating-Cash-Flow 10.16
ARCO's Price-to-Operating-Cash-Flow is ranked higher than
55% of the 173 Companies
in the Global Restaurants industry.

( Industry Median: 11.44 vs. ARCO: 10.16 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
ARCO' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 2.51  Med: 10.25 Max: 21.7
Current: 10.16
2.51
21.7
EV-to-EBIT 11.77
ARCO's EV-to-EBIT is ranked higher than
81% of the 323 Companies
in the Global Restaurants industry.

( Industry Median: 16.92 vs. ARCO: 11.77 )
Ranked among companies with meaningful EV-to-EBIT only.
ARCO' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.4  Med: 14.1 Max: 47.5
Current: 11.77
8.4
47.5
EV-to-EBITDA 7.75
ARCO's EV-to-EBITDA is ranked higher than
87% of the 349 Companies
in the Global Restaurants industry.

( Industry Median: 13.12 vs. ARCO: 7.75 )
Ranked among companies with meaningful EV-to-EBITDA only.
ARCO' s EV-to-EBITDA Range Over the Past 10 Years
Min: 5  Med: 9.2 Max: 31.5
Current: 7.75
5
31.5
Current Ratio 0.81
ARCO's Current Ratio is ranked lower than
64% of the 304 Companies
in the Global Restaurants industry.

( Industry Median: 1.12 vs. ARCO: 0.81 )
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: 0.81
0.55
1.28
Quick Ratio 0.81
ARCO's Quick Ratio is ranked lower than
62% of the 304 Companies
in the Global Restaurants industry.

( Industry Median: 0.98 vs. ARCO: 0.81 )
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: 0.81
0.48
1.18
Days Inventory 6.23
ARCO's Days Inventory is ranked higher than
76% of the 301 Companies
in the Global Restaurants industry.

( Industry Median: 12.76 vs. ARCO: 6.23 )
Ranked among companies with meaningful Days Inventory only.
ARCO' s Days Inventory Range Over the Past 10 Years
Min: 5.94  Med: 8.35 Max: 8.87
Current: 6.23
5.94
8.87
Days Sales Outstanding 10.37
ARCO's Days Sales Outstanding is ranked lower than
53% of the 257 Companies
in the Global Restaurants industry.

( Industry Median: 9.19 vs. ARCO: 10.37 )
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: 10.37
Current: 10.37
3.27
10.37
Days Payable 30.94
ARCO's Days Payable is ranked lower than
64% of the 244 Companies
in the Global Restaurants industry.

( Industry Median: 40.34 vs. ARCO: 30.94 )
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: 30.94
20.57
33.31

Buy Back

vs
industry
vs
history
3-Year Dividend Growth Rate -100.00
ARCO's 3-Year Dividend Growth Rate is ranked lower than
99% of the 118 Companies
in the Global Restaurants industry.

( Industry Median: 8.70 vs. ARCO: -100.00 )
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
ARCO' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: 0  Med: -50 Max: 10
Current: -100
0
10
5-Year Yield-on-Cost % 1.64
ARCO's 5-Year Yield-on-Cost % is ranked lower than
54% of the 360 Companies
in the Global Restaurants industry.

( Industry Median: 2.27 vs. ARCO: 1.64 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
ARCO' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0  Med: 0 Max: 0
Current: 1.64
3-Year Average Share Buyback Ratio -0.20
ARCO's 3-Year Average Share Buyback Ratio is ranked higher than
64% of the 184 Companies
in the Global Restaurants industry.

( Industry Median: -1.00 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-to-Tangible-Book 5.41
ARCO's Price-to-Tangible-Book is ranked lower than
75% of the 246 Companies
in the Global Restaurants industry.

( Industry Median: 3.18 vs. ARCO: 5.41 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
ARCO' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 2.26  Med: 3.97 Max: 8.2
Current: 5.41
2.26
8.2
Price-to-Intrinsic-Value-Projected-FCF 14.11
ARCO's Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
96% of the 160 Companies
in the Global Restaurants industry.

( Industry Median: 2.54 vs. ARCO: 14.11 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
ARCO' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 3.53  Med: 8.93 Max: 14.38
Current: 14.11
3.53
14.38
Price-to-Median-PS-Value 1.07
ARCO's Price-to-Median-PS-Value is ranked higher than
51% of the 264 Companies
in the Global Restaurants industry.

( Industry Median: 1.13 vs. ARCO: 1.07 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
ARCO' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.34  Med: 1.14 Max: 2.72
Current: 1.07
0.34
2.72
Price-to-Graham-Number 2.26
ARCO's Price-to-Graham-Number is ranked lower than
62% of the 170 Companies
in the Global Restaurants industry.

( Industry Median: 1.99 vs. ARCO: 2.26 )
Ranked among companies with meaningful Price-to-Graham-Number only.
ARCO' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.55  Med: 2.59 Max: 4.19
Current: 2.26
1.55
4.19
Earnings Yield (Greenblatt) % 8.49
ARCO's Earnings Yield (Greenblatt) % is ranked higher than
84% of the 379 Companies
in the Global Restaurants industry.

( Industry Median: 5.24 vs. ARCO: 8.49 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
ARCO' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 2.1  Med: 7.1 Max: 12
Current: 8.49
2.1
12
Forward Rate of Return (Yacktman) % -9.15
ARCO's Forward Rate of Return (Yacktman) % is ranked lower than
79% of the 172 Companies
in the Global Restaurants industry.

( Industry Median: 5.75 vs. ARCO: -9.15 )
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: -10.6  Med: -8.3 Max: 0.9
Current: -9.15
-10.6
0.9

More Statistics

Revenue (TTM) (Mil) $2,929
EPS (TTM) $ 0.37
Beta1.78
Short Percentage of Float0.13%
52-Week Range $3.99 - 8.40
Shares Outstanding (Mil)210.71
» More Articles for ARCO

Headlines

Articles On GuruFocus.com
McDonald’s: A Good Business Turnaround Sep 22 2016 
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 

More From Other Websites
Arcos Dorados Recognized by Global Council of Corporate Universities Apr 06 2017
Why Arcos Dorados Holdings Inc Stock Skyrocketed Last Month Apr 05 2017
Arcos Dorados Prices Private Placement of Its 5.875% Senior Notes Due 2027 and Announces Early... Mar 30 2017
Latin America to step up bond sales as Trump fears fade Mar 30 2017
Latin America to Step Up Bond Sales as Trump Fears Fade Mar 30 2017
Arcos Dorados to Participate in World Wildlife Fund’s Earth Hour for 9th Consecutive Year Mar 24 2017
Arcos Dorados Holdings Inc. -- Moody's changes Arcos Dorados' outlook to positive Mar 23 2017
Arcos Dorados Announces Proposed Offering of Senior Notes Mar 23 2017
3 Top Stocks Under $10 Mar 16 2017
Arcos Dorados Holdings Inc. Announces Commencement of Tender Offer for up to U.S.$80 Million of Its... Mar 16 2017
Arcos Dorados Holdings, Inc.: Leading performance but fundamentals not looking strong? Mar 16 2017
Edited Transcript of ARCO earnings conference call or presentation 15-Mar-17 2:00pm GMT Mar 15 2017
What Happened in the Stock Market Today Mar 15 2017
Blog Coverage Restaurant Chain Ruby Tuesday Considering Sale of its Business to Tackle Declining... Mar 15 2017
Arcos Dorados posts 4Q profit Mar 15 2017
Arcos Dorados Reports Fourth Quarter & Full Year 2016 Financial Results Mar 15 2017
Arcos Dorados Holdings, Inc. breached its 50 day moving average in a Bullish Manner : ARCO-US :... Jan 30 2017
33 labor complaints just dropped in front of Trump's labor secretary pick Jan 26 2017
ETFs with exposure to Arcos Dorados Holdings, Inc. : January 25, 2017 Jan 25 2017
Arcos Dorados Invests in Employment and Training for Latin America’s Youth Jan 24 2017

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