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Arcos Dorados Holdings (MEX:ARCO N) Moat Score : 5/10 (As of Jul. 23, 2025)


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What is Arcos Dorados Holdings Moat Score?

Arcos Dorados Holdings has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Arcos Dorados Holdings has Narrow Moat: Arcos Dorados benefits from strong brand strength as the largest McDonald's franchisee in Latin America. It has a solid distribution network and some pricing power due to brand loyalty. However, it faces competitive pressures and lacks significant regulatory barriers or proprietary technology, limiting its moat to a solid narrow level.

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 Narrow Moat - Solid narrow moat.

Competitive Comparison of Arcos Dorados Holdings's Moat Score

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's Moat Score Distribution in the 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.


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Arcos Dorados Holdings  (MEX:ARCO N) 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

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Arcos Dorados Holdings Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Arcos Dorados Holdings Inc (MEX:ARCO N) » Definitions » Moat Score
Comparable Companies
SG PZZA CBRL CNNE WEN BJRI KRUS FWRG BH PTLO MCD SBUX CMG LSE:CPG YUM DRI TSX:QSP.UN TSX:QSR YUMC DPZ
Traded in Other Exchanges
ARCO:USA AD8:Germany AD8:Germany A1RC34:Brazil ARCO:Argentina
Address
Rio Negro 1338, First Floor, Montevideo, URY, 11100
Website
https://www.arcosdorados.com
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. Their menu includes hamburgers, McNuggets, salad, sandwiches, French fries, and others.

Arcos Dorados Holdings Headlines

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