Arcos Dorados Holdings (BSP:A1RC34) Moat Score: 7/10 (As of Jul. 21, 2026)

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BSP:A1RC34 Arcos Dorados Holdings Inc BSP:A1RC34
63 GF Score
Price R$41.60
GF Value R$43.95
Valuation Fairly Valued
! 6 Warning Signs
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What is Arcos Dorados Holdings Moat Score?

Arcos Dorados Holdings BSP:A1RC34 63 Moat Score is 7 as of Jul. 21, 2026. GuruFocus rates BSP:A1RC34 with a GF Score™ of 63/100 and a GF Value™ of R$43.95 (Fairly Valued). The stock has 6 warning signs investors should review. Among 365 Restaurants companies, Arcos Dorados Holdings ranks better than 98.9% on this metric.

Arcos Dorados Holdings has the Moat Score of 7, which implies that the company might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Arcos Dorados Holdings has Wide Moat: Arcos Dorados Holdings Inc possesses a wide moat due to its exclusive rights to operate McDonald's franchises in Latin America. This provides strong brand strength, customer loyalty, and significant economies of scale, ensuring durable competitive advantages.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Arcos Dorados Holdings might have Wide Moat - Entry-level wide moat, clearly possessing durable advantages.

Arcos Dorados Holdings  (BSP:A1RC34) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Arcos Dorados Holdings Moat Score Related Terms

BSP:A1RC34 vs WEN, BH, BJRI: Moat Score Comparison

For the Restaurants subindustry, Arcos Dorados Holdings's Moat Score, along with its competitors' market caps and Moat 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 Moat Score vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's Moat Score distribution charts can be found below:

* The bar in red indicates where Arcos Dorados Holdings's Moat Score falls into.


BSP:A1RC34
63GF Score
Arcos Dorados Holdings Inc BSP:A1RC34
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 7 mean?
Arcos Dorados Holdings (BSP:A1RC34) has a Moat Score of 7 as of Jul. 21, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Arcos Dorados Holdings ranks #4 out of 365 companies in the Restaurants industry, placing it in the top 1.1%.
Is Arcos Dorados Holdings' Moat Score too high?
Arcos Dorados Holdings' current Moat Score is 7. Based on the distribution chart, Arcos Dorados Holdings ranks #4 out of 365 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 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arcos Dorados Holdings' Moat Score compare to WEN and BH?
According to the Restaurants industry distribution chart, Arcos Dorados Holdings ranks #4 out of 365 companies for Moat Score. This places Arcos Dorados Holdings in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Restaurants company?
A good Moat Score depends on the Restaurants industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Arcos Dorados Holdings's current Moat Score is 7. 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 (BSP:A1RC34) is currently considered Fairly Valued. The stock's GF Value™ is R$43.95, compared to a current price of R$41.60 — trading 5.3% below its estimated fair value. The current Moat Score is 7. Arcos Dorados Holdings' overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Arcos Dorados Holdings (BSP:A1RC34), the current Moat Score is 7 as of Jul. 21, 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 (BSP:A1RC34) Overvalued in 2026?

Based on GuruFocus' analysis, Arcos Dorados Holdings stock appears to be undervalued. The current stock price of R$41.60 is trading 5.3% below its estimated GF Value™ of R$43.95. GuruFocus considers Arcos Dorados Holdings to be Fairly Valued.

Key valuation signals for BSP:A1RC34:

  • Moat Score: 7
  • GF Value™: R$43.95 vs. price of R$41.60 (5.3% below fair value)
  • GF Score™: 63/100 with 6 warning signs

No single metric tells the full story. See the BSP:A1RC34 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.
63GF Score

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

R$41.60
Price
R$43.95
GF Value