Arcos Dorados Holdings (MEX:ARCO N) Debt-to-EBITDA : (As of Jun. 2026)

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MEX:ARCO N Arcos Dorados Holdings Inc MEX:ARCO N
84 GF Score
Price MXN133.00
GF Value MXN164.73
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Arcos Dorados Holdings Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Arcos Dorados Holdings's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was MXN2,806 Mil. Arcos Dorados Holdings's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was MXN35,629 Mil. Arcos Dorados Holdings's annualized EBITDA for the quarter that ended in Jun. 2026 was MXN9,304 Mil. Arcos Dorados Holdings's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 was 4.13.

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:

MEX:ARCO N' 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.

MEX:ARCO N's Debt-to-EBITDA is ranked worse than
67.87% of 305 companies
in the Restaurants industry
Industry Median: 2.97 vs MEX:ARCO N: 4.43

Arcos Dorados Holdings  (MEX:ARCO N) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

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.

Arcos Dorados Holdings Debt-to-EBITDA Chart

Arcos Dorados Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Debt-to-EBITDA
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Arcos Dorados Holdings Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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MEX:ARCO N vs WEN, BJRI, 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.


MEX:ARCO N
84GF Score
Arcos Dorados Holdings Inc MEX:ARCO N
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arcos Dorados Holdings Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Arcos Dorados Holdings's Debt-to-EBITDA for the fiscal year that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2132.584454 + 38239.016354) / 10532.67291225
=3.83

Arcos Dorados Holdings's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2805.655195 + 35629.16846125) / 9303.7159176908
=4.13

* 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 (Jun. 2026) EBITDA data.

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 MXN133.00 is trading 19.3% below its estimated GF Value™ of MXN164.73. GuruFocus considers Arcos Dorados Holdings to be Modestly Undervalued.

Key valuation signals for MEX:ARCO N:

  • Debt-to-EBITDA:
  • GF Value™: MXN164.73 vs. price of MXN133.00 (19.3% below fair value)
  • GF Score™: 84/100 with 4 warning signs

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 Business Description

Address Rio Negro 1338, First Floor, Montevideo, URY, 11100
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.
84GF Score

Get the complete analysis for MEX:ARCO N

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN133.00
Price
MXN164.73
GF Value