Arcos Dorados HoldingsMEX:ARCO N 86 Piotroski F-Score is 5 as of Jul. 03, 2026, which is 17% below its 10-year median of 6.00. GuruFocus rates MEX:ARCO N with a GF Score™ of 86/100 and a GF Value™ of MXN166.76 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 354 Restaurants companies, Arcos Dorados Holdings ranks better than 53.95% on this metric.
The zones of discrimination were as such:
Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Arcos Dorados Holdings has an F-score of 5 indicating the company's financial situation is typical for a stable company.
The historical rank and industry rank for Arcos Dorados Holdings's Piotroski F-Score or its related term are showing as below:
MEX:ARCO N'
s Piotroski F-Score Range Over the Past 10 Years
Min: 3 Med: 6 Max: 9
Current: 5
During the past 13 years, the highest Piotroski F-Score of Arcos Dorados Holdings was 9. The lowest was 3. And the median was 6.
The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.
He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.
He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.
What he found was something that exceeded his most optimistic expectations.
Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.
Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).
Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.
Arcos Dorados Holdings Piotroski F-Score Related Terms
Arcos Dorados Holdings Piotroski F-Score Historical Data
* Premium members only.
The historical data trend for Arcos Dorados Holdings's Piotroski F-Score 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.
MEX:ARCO N vs WEN, BH, BJRI: Piotroski F-Score Comparison
For the Restaurants subindustry, Arcos Dorados Holdings's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's Piotroski F-Score distribution charts can be found below:
* The bar in red indicates where Arcos Dorados Holdings's Piotroski F-Score 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.
This Year (Mar26) TTM:
Last Year (Mar25) TTM:
Net Income was 425.295 + 2759.5 + 453.203 + 651.72 = MXN4,290 Mil. Cash Flow from Operations was 0 + 0 + 0 + 326.861 = MXN327 Mil. Revenue was 21508.52 + 21881.475 + 22804.993 + 21927.096 = MXN88,122 Mil. Gross Profit was 2486.245 + 2602.895 + 3249.543 + 2409.638 = MXN10,748 Mil.
Average Total Assets from the begining of this year (Mar25)
to the end of this year (Mar26) was
(70928.989 + 63499.971 + 65418.444 + 69967.341 + 68861.778) / 5 = MXN67735.3046 Mil. Total Assets at the begining of this year (Mar25) was MXN70,929 Mil. Long-Term Debt & Capital Lease Obligation was MXN36,334 Mil. Total Current Assets was MXN12,516 Mil. Total Current Liabilities was MXN15,588 Mil.
Net Income was 487.901 + 693.374 + 1218.056 + 284.983 = MXN2,684 Mil.
Revenue was 20351.821 + 22322.598 + 23863.509 + 22025.134 = MXN88,563 Mil. Gross Profit was 2605.723 + 2779.522 + 3559.317 + 2449.072 = MXN11,394 Mil.
Average Total Assets from the begining of last year (Mar24)
to the end of last year (Mar25) was
(49347.753 + 53055.44 + 58305.282 + 60328.324 + 70928.989) / 5 = MXN58393.1576 Mil. Total Assets at the begining of last year (Mar24) was MXN49,348 Mil. Long-Term Debt & Capital Lease Obligation was MXN37,299 Mil. Total Current Assets was MXN17,611 Mil. Total Current Liabilities was MXN20,479 Mil.
*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.
Profitability
Question 1. Return on Assets (ROA)
Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.
Score 1 if positive, 0 if negative.
Arcos Dorados Holdings's current Net Income (TTM) was 4,290.
==> Positive ==> Score 1.
Question 2. Cash Flow Return on Assets (CFROA)
Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.
Arcos Dorados Holdings's return on assets of this year was 0.06047905. Arcos Dorados Holdings's return on assets of last year was 0.05439587.
==> This year is higher. ==> Score 1.
Question 4. Quality of Earnings (Accrual)
Compare Cash flow return on assets (2) to return on assets (1)
Arcos Dorados Holdings's gearing of this year was 0.53641764. Arcos Dorados Holdings's gearing of last year was 0.63875321.
==> This year is lower or equal to last year. ==> Score 1.
Question 6. Change in Working Capital (Liquidity)
Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.
Score 1 if this year's current ratio is higher, 0 if it's lower
Arcos Dorados Holdings's current ratio of this year was 0.80290238. Arcos Dorados Holdings's current ratio of last year was 0.85992157.
==> Last year's current ratio is higher ==> Score 0.
Question 7. Change in Shares in Issue
Compare the number of shares in issue this year, to the number in issue last year.
Score 0 if there is larger number of shares in issue this year, 1 otherwise.
Arcos Dorados Holdings's number of shares in issue this year was 210.663. Arcos Dorados Holdings's number of shares in issue last year was 210.663.
==> There is smaller number of shares in issue this year, or the same. ==> Score 1.
Efficiency
Question 8. Change in Gross Margin
Compare this year's gross margin (Gross Profit divided by sales) to last year's.
Score 1 if this year's gross margin is higher, 0 if it's lower.
Arcos Dorados Holdings's gross margin of this year was 0.1219708. Arcos Dorados Holdings's gross margin of last year was 0.12864996.
==> Last year's gross margin is higher ==> Score 0.
Question 9. Change in asset turnover
Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.
Score 1 if this year's asset turnover ratio is higher, 0 if it's lower
Arcos Dorados Holdings's asset turnover of this year was 1.2423987. Arcos Dorados Holdings's asset turnover of last year was 1.79467264.
==> Last year's asset turnover is higher ==> Score 0.
Evaluation
Piotroski F-Score
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Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3
Arcos Dorados Holdings has an F-score of 5 indicating the company's financial situation is typical for a stable company.
Arcos Dorados Holdings (MEX:ARCO N) has a Piotroski F-Score of 5 as of Jul. 03, 2026. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on Arcos Dorados Holdings and its competitors. This is 17% below median its historical median of 6.00. Over the past decade, Arcos Dorados Holdings' Piotroski F-Score has ranged from 3.00 to 9.00. According to the industry distribution chart, Arcos Dorados Holdings ranks #163 out of 354 companies in the Restaurants industry, placing it in the top 46%.
Is Arcos Dorados Holdings' Piotroski F-Score too high?
Arcos Dorados Holdings' current Piotroski F-Score of 5 is 17% below median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 9.00. The Restaurants industry median Piotroski F-Score is 5.00. Arcos Dorados Holdings' value of 5 is 0% at this industry median. Based on the distribution chart, Arcos Dorados Holdings ranks #163 out of 354 companies in the Restaurants industry, which is above the industry midpoint. 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' Piotroski F-Score compare to WEN and BH?
According to the Restaurants industry distribution chart, Arcos Dorados Holdings ranks #163 out of 354 companies for Piotroski F-Score. This puts Arcos Dorados Holdings in the upper half of its industry. The industry median Piotroski F-Score is 5.00. Arcos Dorados Holdings' value of 5 is 0% at this benchmark. Historically, Arcos Dorados Holdings' own Piotroski F-Score has ranged from 3.00 to 9.00 over the past decade. While the company's 10-year median is 6.00 vs. the industry median of 5.00, Arcos Dorados Holdings has consistently been at 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 Piotroski F-Score for a Restaurants company?
The median Piotroski F-Score among Restaurants companies is 5.00, based on 354 companies in the industry. Companies in the top quartile (top 25%) have a Piotroski F-Score significantly above this median, while those in the bottom quartile fall well below. However, Piotroski F-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arcos Dorados Holdings's current Piotroski F-Score of 5 is 0% at 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 Piotroski F-Score mean?
A high Piotroski F-Score can signal that a stock is expensive relative to its fundamentals. The Piotroski F-score grades a company's business operating strength from 0-9. View historical data on Arcos Dorados Holdings and its competitors. For the Restaurants industry, the median Piotroski F-Score is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arcos Dorados Holdings's current Piotroski F-Score is 5, which is 17% below median its own 10-year median of 6.00. 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 MXN166.76, compared to a current price of MXN145.23 — trading 12.9% below its estimated fair value. The current Piotroski F-Score is 5, which is 17% below median its 10-year median of 6.00 and 0% at the Restaurants industry median of 5.00. 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 Piotroski F-Score calculated?
Piotroski F-Score is calculated from a company's financial statements. For Arcos Dorados Holdings (MEX:ARCO N), the current Piotroski F-Score is 5 as of Jul. 03, 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 12.9% below its estimated GF Value™ of MXN166.76.
GuruFocus considers Arcos Dorados Holdings to be Modestly Undervalued.
Key valuation signals for MEX:ARCO N:
Piotroski F-Score: 5 (17% below median its 10-year median of 6.00)
GF Value™: MXN166.76 vs. price of MXN145.23 (12.9% below fair value)
Industry Position: 0% at the Restaurants median (#163 of 354)
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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