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This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Arcos Dorados Holdings's Enterprise Value for the quarter that ended in Jun. 2026 was €3,176 Mil.
Arcos Dorados Holdings's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €336 Mil.
* 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 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 EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Arcos Dorados Holdings's EV-to-EBIT falls into.
Arcos Dorados Holdings's current Enterprise Value is €3,136 Mil.
Arcos Dorados Holdings's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €336 Mil.
* 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 (FRA:AD8) has a EV-to-EBIT of 9.32 as of Aug. 15, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Arcos Dorados Holdings and its competitors. This is 16% below median its historical median of 11.04. According to the industry distribution chart, Arcos Dorados Holdings ranks #48 out of 263 companies in the Restaurants industry, placing it in the top 18.3%.
Is Arcos Dorados Holdings' EV-to-EBIT too high?
Arcos Dorados Holdings' current EV-to-EBIT of 9.32 is 16% below median its 10-year median of 11.04. The Restaurants industry median EV-to-EBIT is 17.14. Arcos Dorados Holdings' value of 9.32 is 45.6% below this industry median. Based on the distribution chart, Arcos Dorados Holdings ranks #48 out of 263 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Arcos Dorados Holdings has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Arcos Dorados Holdings' EV-to-EBIT compare to BJRI and WEN?
According to the Restaurants industry distribution chart, Arcos Dorados Holdings ranks #48 out of 263 companies for EV-to-EBIT. This places Arcos Dorados Holdings in the top 18% of its industry — outperforming the majority of peers. The industry median EV-to-EBIT is 17.14. Arcos Dorados Holdings' value of 9.32 is 45.6% below this benchmark. While the company's 10-year median is 11.04 vs. the industry median of 17.14, Arcos Dorados Holdings has consistently been below 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 EV-to-EBIT for a Restaurants company?
The median EV-to-EBIT among Restaurants companies is 17.14, based on 263 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arcos Dorados Holdings's current EV-to-EBIT of 9.32 is 45.6% below 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Arcos Dorados Holdings and its competitors. For the Restaurants industry, the median EV-to-EBIT is 17.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arcos Dorados Holdings's current EV-to-EBIT is 9.32, which is 16% below median its own 10-year median of 11.04. 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 EV-to-EBIT of 9.32. The stock's GF Value™ is €8.13, compared to a current price of €6.96 — trading 14.5% below its estimated fair value. The current EV-to-EBIT is 9.32, which is 16% below median its 10-year median of 11.04 and 45.6% below the Restaurants industry median of 17.14. Arcos Dorados Holdings' overall GF Score™ is 89/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Arcos Dorados Holdings (FRA:AD8), the current EV-to-EBIT is 9.32 as of Aug. 15, 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 €6.96 is trading 14.5% below its estimated GF Value™ of €8.13.
Key valuation signals for FRA:AD8:
EV-to-EBIT: 9.32 (16% below median its 10-year median of 11.04)
GF Value™: €8.13 vs. price of €6.96 (14.5% below fair value)
Industry Position: 45.6% below the Restaurants median (#48 of 263)
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.
89GF Score
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