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Arcos Dorados Holdings (Arcos Dorados Holdings) Gross Profit : $583 Mil (TTM As of Sep. 2023)


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What is Arcos Dorados Holdings Gross Profit?

Arcos Dorados Holdings's gross profit for the three months ended in Sep. 2023 was $161 Mil. Arcos Dorados Holdings's gross profit for the trailing twelve months (TTM) ended in Sep. 2023 was $583 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Arcos Dorados Holdings's gross profit for the three months ended in Sep. 2023 was $161 Mil. Arcos Dorados Holdings's Revenue for the three months ended in Sep. 2023 was $1,125 Mil. Therefore, Arcos Dorados Holdings's Gross Margin % for the quarter that ended in Sep. 2023 was 14.33%.

Arcos Dorados Holdings had a gross margin of 14.33% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage

During the past 13 years, the highest Gross Margin % of Arcos Dorados Holdings was 13.96%. The lowest was 5.82%. And the median was 12.33%.

Warning Sign:

Arcos Dorados Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -2.9%.


Arcos Dorados Holdings Gross Profit Historical Data

The historical data trend for Arcos Dorados Holdings's Gross Profit can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arcos Dorados Holdings Gross Profit Chart

Arcos Dorados Holdings Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Profit
Get a 7-Day Free Trial Premium Member Only Premium Member Only 413.93 367.54 115.44 324.06 492.61

Arcos Dorados Holdings Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Gross Profit Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 128.51 152.04 132.94 136.77 161.25

Competitive Comparison of Arcos Dorados Holdings's Gross Profit

For the Restaurants subindustry, Arcos Dorados Holdings's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arcos Dorados Holdings's Gross Profit Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's Gross Profit distribution charts can be found below:

* The bar in red indicates where Arcos Dorados Holdings's Gross Profit falls into.



Arcos Dorados Holdings Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Arcos Dorados Holdings's Gross Profit for the fiscal year that ended in Dec. 2022 is calculated as

Gross Profit (A: Dec. 2022 )=Revenue - Cost of Goods Sold
=3618.902 - 3126.297
=493

Arcos Dorados Holdings's Gross Profit for the quarter that ended in Sep. 2023 is calculated as

Gross Profit (Q: Sep. 2023 )=Revenue - Cost of Goods Sold
=1125.11 - 963.865
=161

Gross Profit for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $583 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Arcos Dorados Holdings's Gross Margin % for the quarter that ended in Sep. 2023 is calculated as

Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=(Revenue - Cost of Goods Sold) / Revenue
=161 / 1125.11
=14.33 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Arcos Dorados Holdings  (NYSE:ARCO) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Arcos Dorados Holdings had a gross margin of 14.33% for the quarter that ended in Sep. 2023 => No sustainable competitive advantage


Arcos Dorados Holdings Gross Profit Related Terms

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Arcos Dorados Holdings (Arcos Dorados Holdings) Business Description

Address
Dr. Luis Bonavita 1294, Office 501, WTC Free Zone, Montevideo, URY, 11300
Arcos Dorados Holdings Inc operates McDonald's-branded restaurants in approximately 20 countries and territories in Latin America and the Caribbean. It functions through two sources which include company-operated restaurants and franchised restaurants segment. Their menu includes hamburgers, McNuggets, salad, sandwiches, french fries and others.