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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 0.19
ARCO's Cash to Debt is ranked lower than
73% of the 308 Companies
in the Global Restaurants industry.

( Industry Median: 0.57 vs. ARCO: 0.19 )
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: 0.19
Equity to Asset 0.23
ARCO's Equity to Asset is ranked lower than
85% of the 306 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 2.54
ARCO's Interest Coverage is ranked lower than
89% of the 270 Companies
in the Global Restaurants industry.

( Industry Median: 21.87 vs. ARCO: 2.54 )
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: 2.54
0.97
10.22
F-Score: 6
Z-Score: 3.15
M-Score: -2.55
WACC vs ROIC
11.37%
8.11%
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 : 6/10

vs
industry
vs
history
Operating margin (%) 6.16
ARCO's Operating margin (%) is ranked higher than
57% of the 308 Companies
in the Global Restaurants industry.

( Industry Median: 5.06 vs. ARCO: 6.16 )
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: 6.16
1.94
7.76
Net-margin (%) 2.19
ARCO's Net-margin (%) is ranked lower than
57% of the 308 Companies
in the Global Restaurants industry.

( Industry Median: 3.04 vs. ARCO: 2.19 )
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: 2.19
-2.99
3.51
ROE (%) 20.27
ARCO's ROE (%) is ranked higher than
82% of the 291 Companies
in the Global Restaurants industry.

( Industry Median: 8.90 vs. ARCO: 20.27 )
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: 20.27
-18.99
21.19
ROA (%) 4.30
ARCO's ROA (%) is ranked higher than
51% of the 308 Companies
in the Global Restaurants industry.

( Industry Median: 4.15 vs. ARCO: 4.30 )
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: 4.3
-5.5
6.49
ROC (Joel Greenblatt) (%) 20.82
ARCO's ROC (Joel Greenblatt) (%) is ranked higher than
54% of the 307 Companies
in the Global Restaurants industry.

( Industry Median: 18.51 vs. ARCO: 20.82 )
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: 20.82
6.06
26.32
Revenue Growth (3Y)(%) -7.10
ARCO's Revenue Growth (3Y)(%) is ranked lower than
86% of the 246 Companies
in the Global Restaurants industry.

( Industry Median: 4.50 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
83% of the 224 Companies
in the Global Restaurants industry.

( Industry Median: 5.00 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

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%)
Barrow, Hanley, Mewhinney & Strauss 159,130 sh (unchged)
Bill Gates 3,060,500 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
» Details

Insider Trades

Latest Guru Trades with ARCO

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Business Description

Industry: Restaurants » Restaurants
Compare:NYSE:FCPT, NAS:SONC, NAS:PLKI, OTCPK:JDWPF, NYSE:SHAK, NYSE:BH, NAS:DENN, NAS:BJRI, NAS:WING, NAS:BOBE, OTCPK:MTYFF, NAS:FRGI, NYSE:DIN, NAS:RRGB, NAS:TACO, NAS:RUTH, NAS:BOJA, NAS:CHUY, NAS:LOCO, NYSE:ZOES » 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) 19.66
ARCO's P/E(ttm) is ranked higher than
64% of the 232 Companies
in the Global Restaurants industry.

( Industry Median: 22.97 vs. ARCO: 19.66 )
Ranked among companies with meaningful P/E(ttm) only.
ARCO' s P/E(ttm) Range Over the Past 10 Years
Min: 16.62  Med: 35.48 Max: 59.29
Current: 19.66
16.62
59.29
PE(NRI) 19.66
ARCO's PE(NRI) is ranked higher than
63% of the 232 Companies
in the Global Restaurants industry.

( Industry Median: 22.63 vs. ARCO: 19.66 )
Ranked among companies with meaningful PE(NRI) only.
ARCO' s PE(NRI) Range Over the Past 10 Years
Min: 16.62  Med: 35.74 Max: 59.42
Current: 19.66
16.62
59.42
Price/Owner Earnings (ttm) 335.49
ARCO's Price/Owner Earnings (ttm) is ranked lower than
99% of the 138 Companies
in the Global Restaurants industry.

( Industry Median: 25.06 vs. ARCO: 335.49 )
Ranked among companies with meaningful Price/Owner Earnings (ttm) only.
ARCO' s Price/Owner Earnings (ttm) Range Over the Past 10 Years
Min: 283.53  Med: 333.83 Max: 365.88
Current: 335.49
283.53
365.88
P/B 3.58
ARCO's P/B is ranked lower than
66% of the 287 Companies
in the Global Restaurants industry.

( Industry Median: 2.74 vs. ARCO: 3.58 )
Ranked among companies with meaningful P/B only.
ARCO' s P/B Range Over the Past 10 Years
Min: 1.63  Med: 3.58 Max: 9.26
Current: 3.58
1.63
9.26
P/S 0.43
ARCO's P/S is ranked higher than
85% of the 304 Companies
in the Global Restaurants industry.

( Industry Median: 0.95 vs. ARCO: 0.43 )
Ranked among companies with meaningful P/S only.
ARCO' s P/S Range Over the Past 10 Years
Min: 0.15  Med: 0.55 Max: 1.77
Current: 0.43
0.15
1.77
PFCF 25.70
ARCO's PFCF is ranked lower than
57% of the 120 Companies
in the Global Restaurants industry.

( Industry Median: 23.50 vs. ARCO: 25.70 )
Ranked among companies with meaningful PFCF only.
ARCO' s PFCF Range Over the Past 10 Years
Min: 5.53  Med: 27.74 Max: 352.1
Current: 25.7
5.53
352.1
POCF 9.30
ARCO's POCF is ranked higher than
61% of the 174 Companies
in the Global Restaurants industry.

( Industry Median: 11.33 vs. ARCO: 9.30 )
Ranked among companies with meaningful POCF only.
ARCO' s POCF Range Over the Past 10 Years
Min: 2.51  Med: 10.79 Max: 21.7
Current: 9.3
2.51
21.7
EV-to-EBIT 9.40
ARCO's EV-to-EBIT is ranked higher than
83% of the 239 Companies
in the Global Restaurants industry.

( Industry Median: 16.71 vs. ARCO: 9.40 )
Ranked among companies with meaningful EV-to-EBIT only.
ARCO' s EV-to-EBIT Range Over the Past 10 Years
Min: 8.4  Med: 14.3 Max: 47.5
Current: 9.4
8.4
47.5
EV-to-EBITDA 5.98
ARCO's EV-to-EBITDA is ranked higher than
88% of the 259 Companies
in the Global Restaurants industry.

( Industry Median: 12.41 vs. ARCO: 5.98 )
Ranked among companies with meaningful EV-to-EBITDA only.
ARCO' s EV-to-EBITDA Range Over the Past 10 Years
Min: 5  Med: 9.3 Max: 31.5
Current: 5.98
5
31.5
Current Ratio 0.84
ARCO's Current Ratio is ranked lower than
63% of the 304 Companies
in the Global Restaurants industry.

( Industry Median: 1.09 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 0.74
ARCO's Quick Ratio is ranked lower than
63% of the 304 Companies
in the Global Restaurants industry.

( Industry Median: 0.95 vs. ARCO: 0.74 )
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: 0.74
0.48
1.18
Days Inventory 6.41
ARCO's Days Inventory is ranked higher than
76% of the 291 Companies
in the Global Restaurants industry.

( Industry Median: 12.20 vs. ARCO: 6.41 )
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: 6.41
5.94
8.87
Days Sales Outstanding 13.45
ARCO's Days Sales Outstanding is ranked lower than
66% of the 252 Companies
in the Global Restaurants industry.

( Industry Median: 8.16 vs. ARCO: 13.45 )
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: 13.45
Current: 13.45
3.27
13.45
Days Payable 27.10
ARCO's Days Payable is ranked lower than
63% of the 241 Companies
in the Global Restaurants industry.

( Industry Median: 35.99 vs. ARCO: 27.10 )
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: 27.1
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: 9.70 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 361 Companies
in the Global Restaurants industry.

( Industry Median: 2.24 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
63% of the 184 Companies
in the Global Restaurants industry.

( Industry Median: -1.10 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 4.20
ARCO's Price/Tangible Book is ranked lower than
70% of the 235 Companies
in the Global Restaurants industry.

( Industry Median: 2.84 vs. ARCO: 4.20 )
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: 4.2
2.26
8.2
Price/Projected FCF 13.49
ARCO's Price/Projected FCF is ranked lower than
98% of the 162 Companies
in the Global Restaurants industry.

( Industry Median: 2.09 vs. ARCO: 13.49 )
Ranked among companies with meaningful Price/Projected FCF only.
ARCO' s Price/Projected FCF Range Over the Past 10 Years
Min: 7.07  Med: 10.42 Max: 13.95
Current: 13.49
7.07
13.95
Price/Median PS Value 0.78
ARCO's Price/Median PS Value is ranked higher than
80% of the 260 Companies
in the Global Restaurants industry.

( Industry Median: 1.15 vs. ARCO: 0.78 )
Ranked among companies with meaningful Price/Median PS Value only.
ARCO' s Price/Median PS Value Range Over the Past 10 Years
Min: 0.32  Med: 1.12 Max: 2.62
Current: 0.78
0.32
2.62
Price/Graham Number 1.93
ARCO's Price/Graham Number is ranked lower than
51% of the 167 Companies
in the Global Restaurants industry.

( Industry Median: 1.92 vs. ARCO: 1.93 )
Ranked among companies with meaningful Price/Graham Number only.
ARCO' s Price/Graham Number Range Over the Past 10 Years
Min: 1.76  Med: 2.61 Max: 4.19
Current: 1.93
1.76
4.19
Earnings Yield (Greenblatt) (%) 10.67
ARCO's Earnings Yield (Greenblatt) (%) is ranked higher than
86% of the 301 Companies
in the Global Restaurants industry.

( Industry Median: 5.10 vs. ARCO: 10.67 )
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: 12
Current: 10.67
2.1
12
Forward Rate of Return (Yacktman) (%) -8.70
ARCO's Forward Rate of Return (Yacktman) (%) is ranked lower than
80% of the 173 Companies
in the Global Restaurants industry.

( Industry Median: 6.75 vs. ARCO: -8.70 )
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: -7.8 Max: 0.9
Current: -8.7
-10.6
0.9

More Statistics

Revenue (TTM) (Mil) $2,886
EPS (TTM) $ 0.29
Beta2.09
Short Percentage of Float0.09%
52-Week Range $2.16 - 6.60
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
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Arcos Dorados Holdings, Inc. breached its 50 day moving average in a Bullish Manner : ARCO-US :... Nov 30 2016
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Arcos Dorados Holdings, Inc. :ARCO-US: Earnings Analysis: Q3, 2016 By the Numbers : November 18,... Nov 18 2016
ETFs with exposure to Arcos Dorados Holdings, Inc. : November 17, 2016 Nov 17 2016
Arcos Dorados Holdings, Inc. breached its 50 day moving average in a Bullish Manner : ARCO-US :... Nov 16 2016
Why Arcos Dorados Holdings (ARCO) Might Be a Diamond in the Rough Nov 09 2016
Edited Transcript of ARCO earnings conference call or presentation 2-Nov-16 2:00pm GMT Nov 02 2016
Arcos Dorados reports 3Q loss Nov 02 2016
Arcos Dorados reports 3Q loss Nov 02 2016
Arcos Dorados Reports Third Quarter 2016 Financial Results Nov 02 2016
Q3 2016 Arcos Dorados Holdings Inc Earnings Release - Before Market Open Nov 02 2016
6 Analyst Stock Picks Under $10 for Massive Upside Oct 30 2016
Arcos Dorados Holdings (ARCO) Jumps: Stock Soars 5.7% Oct 25 2016
Top-Line Improvement Slow But Steady At Arcos Dorados Oct 24 2016
Arcos Dorados upgraded by Morgan Stanley Oct 24 2016
ETF’s with exposure to Arcos Dorados Holdings, Inc. : October 19, 2016 Oct 19 2016

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