Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-07-01), Arcos Dorados Holdings's Beta is 0.2662.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
* 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.
For the Restaurants subindustry, Arcos Dorados Holdings's Beta, along with its competitors' market caps and Beta 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 Beta vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's Beta distribution charts can be found below:
* The bar in red indicates where Arcos Dorados Holdings's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
Arcos Dorados Holdings (MEX:ARCO N) has a Beta of 0.2662 as of Jul. 01, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Arcos Dorados Holdings and its competitors.
Is Arcos Dorados Holdings' Beta too high?
Arcos Dorados Holdings' current Beta is 0.2662. Overall, Arcos Dorados Holdings has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arcos Dorados Holdings' Beta compare to WEN and BH?
Arcos Dorados Holdings' Beta of 0.2662 can be compared against companies in the Restaurants industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for a Restaurants company?
A good Beta depends on the Restaurants industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Arcos Dorados Holdings and its competitors. Arcos Dorados Holdings's current Beta is 0.2662. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arcos Dorados Holdings stock overvalued right now?
Based on GuruFocus' analysis, Arcos Dorados Holdings (MEX:ARCO N) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN170.28, compared to a current price of MXN145.23 — trading 14.7% below its estimated fair value. The current Beta is 0.2662. Arcos Dorados Holdings' overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For Arcos Dorados Holdings (MEX:ARCO N), the current Beta is 0.2662 as of Jul. 01, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Arcos Dorados Holdings (MEX:ARCO N) Overvalued in 2026?
Based on GuruFocus' analysis, Arcos Dorados Holdings stock appears to be undervalued.
The current stock price of MXN145.23 is trading 14.7% below its estimated GF Value™ of MXN170.28.
GuruFocus considers Arcos Dorados Holdings to be Modestly Undervalued.
Key valuation signals for MEX:ARCO N:
Beta: 0.2662
GF Value™: MXN170.28 vs. price of MXN145.23 (14.7% below fair value)
No single metric tells the full story. See the MEX:ARCO N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arcos Dorados Holdings Inc operates McDonald's branded restaurants in various countries and territories in Latin America and the Caribbean. The Company manages its business as distinct geographic segments and its operations are divided into three geographic divisions, as follows: Brazil, the North Latin American division, or NOLAD, which is comprised of Costa Rica, Mexico, Panama, Puerto Rico, Martinique, Guadeloupe, French Guiana and the U.S. Virgin Islands of St. Croix and St. Thomas and the South Latin American division, or SLAD, which is comprised of Argentina, Chile, Ecuador, Peru, Uruguay, Colombia, Venezuela, Trinidad and Tobago, Aruba and Curacao. Its menu includes hamburgers, McNuggets, salad, sandwiches, French fries, and others. It generates maximum revenue from Brazil.
86GF Score
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