Arcos Dorados Holdings (FRA:AD8) EV-to-EBITDA: 6.05 (As of Aug. 15, 2026) — 22% Below Median

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FRA:AD8 Arcos Dorados Holdings Inc FRA:AD8
89 GF Score
Price €6.96
GF Value €8.13
! 4 Warning Signs
View Full Analysis

What is Arcos Dorados Holdings EV-to-EBITDA?

Arcos Dorados Holdings FRA:AD8 +3.04% 89 EV-to-EBITDA is 6.05 as of Aug. 15, 2026, which is 22% below its 10-year median of 7.74. GuruFocus rates FRA:AD8 with a GF Score™ of 89/100 and a GF Value™ of €8.13. The stock has 4 warning signs investors should review. Among 310 Restaurants companies, Arcos Dorados Holdings ranks better than 62.26% on this metric.

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Arcos Dorados Holdings's enterprise value is €3,136 Mil. Arcos Dorados Holdings's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 was €518 Mil. Therefore, Arcos Dorados Holdings's EV-to-EBITDA for today is 6.05.

The historical rank and industry rank for Arcos Dorados Holdings's EV-to-EBITDA or its related term are showing as below:

FRA:AD8' s EV-to-EBITDA Range Over the Past 10 Years
Min: 5.66   Med: 7.74   Max: 50.41
Current: 5.99

During the past 13 years, the highest EV-to-EBITDA of Arcos Dorados Holdings was 50.41. The lowest was 5.66. And the median was 7.74.

FRA:AD8's EV-to-EBITDA is ranked better than
62.26% of 310 companies
in the Restaurants industry
Industry Median: 9.89 vs FRA:AD8: 5.99

EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

As of today (2026-08-15), Arcos Dorados Holdings's stock price is €6.955. Arcos Dorados Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 was €1.045. Therefore, Arcos Dorados Holdings's PE Ratio (TTM) for today is 6.66.

The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).


Arcos Dorados Holdings  (FRA:AD8) EV-to-EBITDA Explanation

EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.

Arcos Dorados Holdings's PE Ratio (TTM) for today is calculated as:

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=6.955/1.045
=6.66

Arcos Dorados Holdings's share price for today is €6.955.
Arcos Dorados Holdings's Earnings per Share (Diluted) 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 €1.045.

* 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.

Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).

Please read Which price ratio outperforms the enterprise multiple?


Arcos Dorados Holdings EV-to-EBITDA Related Terms


Arcos Dorados Holdings EV-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Arcos Dorados Holdings's EV-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 EV-to-EBITDA Chart

Arcos Dorados Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EV-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.54 7.86 8.89 6.21 6.00

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
EV-to-EBITDA 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 7.30 5.92 6.00 6.20 6.04

FRA:AD8 vs BJRI, WEN, CBRL: EV-to-EBITDA Comparison

For the Restaurants subindustry, Arcos Dorados Holdings's EV-to-EBITDA, along with its competitors' market caps and EV-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 EV-to-EBITDA vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's EV-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Arcos Dorados Holdings's EV-to-EBITDA falls into.


FRA:AD8
89GF Score
Arcos Dorados Holdings Inc FRA:AD8
EV-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arcos Dorados Holdings EV-to-EBITDA Calculation

Arcos Dorados Holdings's EV-to-EBITDA for today is calculated as:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA (TTM)
=3135.720/518.415
=6.05

Arcos Dorados Holdings's current Enterprise Value is €3,136 Mil.
Arcos Dorados Holdings's EBITDA 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 €518 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.

Frequently Asked Questions Learn more about EV-to-EBITDA →
What does a EV-to-EBITDA of 6.05 mean?
Arcos Dorados Holdings (FRA:AD8) has a EV-to-EBITDA of 6.05 as of Aug. 15, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Arcos Dorados Holdings. This is 22% below median its historical median of 7.74. Over the past decade, Arcos Dorados Holdings' EV-to-EBITDA has ranged from 5.66 to 50.41. According to the industry distribution chart, Arcos Dorados Holdings ranks #117 out of 310 companies in the Restaurants industry, placing it in the top 37.7%.
Is Arcos Dorados Holdings' EV-to-EBITDA too high?
Arcos Dorados Holdings' current EV-to-EBITDA of 6.05 is 22% below median its 10-year median of 7.74. Over the past 10 years, this metric has ranged from a low of 5.66 to a high of 50.41. The Restaurants industry median EV-to-EBITDA is 9.89. Arcos Dorados Holdings' value of 6.05 is 38.8% below this industry median. Based on the distribution chart, Arcos Dorados Holdings ranks #117 out of 310 companies in the Restaurants industry, which is above the industry midpoint. 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-EBITDA compare to BJRI and WEN?
According to the Restaurants industry distribution chart, Arcos Dorados Holdings ranks #117 out of 310 companies for EV-to-EBITDA. This puts Arcos Dorados Holdings in the upper half of its industry. The industry median EV-to-EBITDA is 9.89. Arcos Dorados Holdings' value of 6.05 is 38.8% below this benchmark. Historically, Arcos Dorados Holdings' own EV-to-EBITDA has ranged from 5.66 to 50.41 over the past decade. While the company's 10-year median is 7.74 vs. the industry median of 9.89, 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-EBITDA for a Restaurants company?
The median EV-to-EBITDA among Restaurants companies is 9.89, based on 310 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arcos Dorados Holdings's current EV-to-EBITDA of 6.05 is 38.8% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Arcos Dorados Holdings. For the Restaurants industry, the median EV-to-EBITDA is 9.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arcos Dorados Holdings's current EV-to-EBITDA is 6.05, which is 22% below median its own 10-year median of 7.74. 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-EBITDA of 6.05. 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-EBITDA is 6.05, which is 22% below median its 10-year median of 7.74 and 38.8% below the Restaurants industry median of 9.89. 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-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Arcos Dorados Holdings (FRA:AD8), the current EV-to-EBITDA is 6.05 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-EBITDA: 6.05 (22% below median its 10-year median of 7.74)
  • GF Value™: €8.13 vs. price of €6.96 (14.5% below fair value)
  • GF Score™: 89/100 with 4 warning signs
  • Industry Position: 38.8% below the Restaurants median (#117 of 310)

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 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.
89GF Score

Get the complete analysis for FRA:AD8

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

€6.96
Price
€8.13
GF Value