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A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Arcos Dorados Holdings's Debt-to-EBITDA or its related term are showing as below:
FRA:AD8'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.7 Med: 3.82 Max: 26.39
Current: 4.43
During the past 13 years, the highest Debt-to-EBITDA Ratio of Arcos Dorados Holdings was 26.39. The lowest was 1.70. And the median was 3.82.
FRA:AD8's Debt-to-EBITDA is ranked worse than 68.32% of 303
companies
in the Restaurants industry
Industry Median: 2.95
vs FRA:AD8: 4.43
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Arcos Dorados Holdings Debt-to-EBITDA Related Terms
Arcos Dorados Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Arcos Dorados Holdings's Debt-to-EBITDA 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.
FRA:AD8 vs BJRI, WEN, CBRL: Debt-to-EBITDA Comparison
For the Restaurants subindustry, Arcos Dorados Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Arcos Dorados Holdings's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Arcos Dorados Holdings (FRA:AD8) has a Debt-to-EBITDA of 4.63 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Arcos Dorados Holdings. This is 21% above median its historical median of 3.82. Over the past decade, Arcos Dorados Holdings' Debt-to-EBITDA has ranged from 1.70 to 26.39. According to the industry distribution chart, Arcos Dorados Holdings ranks #207 out of 303 companies in the Restaurants industry, placing it in the top 68.3%.
Is Arcos Dorados Holdings' Debt-to-EBITDA too high?
Arcos Dorados Holdings' current Debt-to-EBITDA of 4.63 is 21% above median its 10-year median of 3.82. Over the past 10 years, this metric has ranged from a low of 1.70 to a high of 26.39. The Restaurants industry median Debt-to-EBITDA is 2.95. Arcos Dorados Holdings' value of 4.63 is 56.9% above this industry median. Based on the distribution chart, Arcos Dorados Holdings ranks #207 out of 303 companies in the Restaurants industry, which is below the industry midpoint. Overall, Arcos Dorados Holdings has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Arcos Dorados Holdings' Debt-to-EBITDA compare to BJRI and WEN?
According to the Restaurants industry distribution chart, Arcos Dorados Holdings ranks #207 out of 303 companies for Debt-to-EBITDA. This places Arcos Dorados Holdings in the lower half of its industry. The industry median Debt-to-EBITDA is 2.95. Arcos Dorados Holdings' value of 4.63 is 56.9% above this benchmark. Historically, Arcos Dorados Holdings' own Debt-to-EBITDA has ranged from 1.70 to 26.39 over the past decade. While the company's 10-year median is 3.82 vs. the industry median of 2.95, Arcos Dorados Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Restaurants company?
The median Debt-to-EBITDA among Restaurants companies is 2.95, based on 303 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arcos Dorados Holdings's current Debt-to-EBITDA of 4.63 is 56.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Arcos Dorados Holdings. For the Restaurants industry, the median Debt-to-EBITDA is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arcos Dorados Holdings's current Debt-to-EBITDA is 4.63, which is 21% above median its own 10-year median of 3.82. 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?
Arcos Dorados Holdings (FRA:AD8) has a current Debt-to-EBITDA of 4.63. The stock's GF Value™ is €8.29, compared to a current price of €7.23 — trading 12.8% below its estimated fair value. The current Debt-to-EBITDA is 4.63, which is 21% above median its 10-year median of 3.82 and 56.9% above the Restaurants industry median of 2.95. Arcos Dorados Holdings' overall GF Score™ is 90/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Arcos Dorados Holdings (FRA:AD8), the current Debt-to-EBITDA is 4.63 as of Mar. 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 (FRA:AD8) Overvalued in 2026?
Based on GuruFocus' analysis, Arcos Dorados Holdings stock appears to be undervalued.
The current stock price of €7.23 is trading 12.8% below its estimated GF Value™ of €8.29.
Key valuation signals for FRA:AD8:
Debt-to-EBITDA: 4.63 (21% above median its 10-year median of 3.82)
GF Value™: €8.29 vs. price of €7.23 (12.8% below fair value)
Industry Position: 56.9% above the Restaurants median (#207 of 303)
No single metric tells the full story. See the FRA:AD8 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.
90GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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