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Arcos Dorados HoldingsMEX:ARCO N 88 Dividend Payout Ratio is 0.51 as of Mar. 2026, which is 82% above its 10-year median of 0.28. GuruFocus rates MEX:ARCO N with a GF Score™ of 88/100 and a GF Value™ of MXN163.50 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 166 Restaurants companies, Arcos Dorados Holdings ranks better than 73.49% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Arcos Dorados Holdings's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.51.
The historical rank and industry rank for Arcos Dorados Holdings's Dividend Payout Ratio or its related term are showing as below:
MEX:ARCO N'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.22 Med: 0.28 Max: 0.73
Current: 0.23
During the past 13 years, the highest Dividend Payout Ratio of Arcos Dorados Holdings was 0.73. The lowest was 0.22. And the median was 0.28.
MEX:ARCO N's Dividend Payout Ratio is ranked better than 73.49% of 166
companies
in the Restaurants industry
Industry Median: 0.39
vs MEX:ARCO N: 0.23
During the past 13 years, the highest Trailing Annual Dividend Yield of Arcos Dorados Holdings was 5.27%. The lowest was 0.49%. And the median was 1.72%.
During the past 12 months, Arcos Dorados Holdings's average Dividends Per Share Growth Rate was 4.20% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 17.00% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Arcos Dorados Holdings was 57.10% per year. The lowest was 10.10% per year. And the median was 14.45% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
Arcos Dorados Holdings (MEX:ARCO N) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Arcos Dorados Holdings Dividend Payout Ratio Related Terms
Arcos Dorados Holdings Dividend Payout Ratio Historical Data
* Premium members only.
The historical data trend for Arcos Dorados Holdings's Dividend Payout Ratio 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 Dividend Payout Ratio Chart
MEX:ARCO N vs WEN, BH, BJRI: Dividend Payout Ratio Comparison
For the Restaurants subindustry, Arcos Dorados Holdings's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio 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 Dividend Payout Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Arcos Dorados Holdings's Dividend Payout Ratio falls into.
Arcos Dorados Holdings Dividend Payout Ratio Calculation
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
Arcos Dorados Holdings's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (MEX:ARCO N) has a Dividend Payout Ratio of 0.51 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Arcos Dorados Holdings and its competitors. This is 82% above median its historical median of 0.28. Over the past decade, Arcos Dorados Holdings' Dividend Payout Ratio has ranged from 0.22 to 0.73. According to the industry distribution chart, Arcos Dorados Holdings ranks #44 out of 166 companies in the Restaurants industry, placing it in the top 26.5%.
Is Arcos Dorados Holdings' Dividend Payout Ratio too high?
Arcos Dorados Holdings' current Dividend Payout Ratio of 0.51 is 82% above median its 10-year median of 0.28. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 0.73. The Restaurants industry median Dividend Payout Ratio is 0.39. Arcos Dorados Holdings' value of 0.51 is 30.8% above this industry median. Based on the distribution chart, Arcos Dorados Holdings ranks #44 out of 166 companies in the Restaurants industry, which is above the industry midpoint. Overall, Arcos Dorados Holdings has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arcos Dorados Holdings' Dividend Payout Ratio compare to WEN and BH?
According to the Restaurants industry distribution chart, Arcos Dorados Holdings ranks #44 out of 166 companies for Dividend Payout Ratio. This puts Arcos Dorados Holdings in the upper half of its industry. The industry median Dividend Payout Ratio is 0.39. Arcos Dorados Holdings' value of 0.51 is 30.8% above this benchmark. Historically, Arcos Dorados Holdings' own Dividend Payout Ratio has ranged from 0.22 to 0.73 over the past decade. While the company's 10-year median is 0.28 vs. the industry median of 0.39, Arcos Dorados Holdings has consistently been above 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 Dividend Payout Ratio for a Restaurants company?
The median Dividend Payout Ratio among Restaurants companies is 0.39, based on 166 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arcos Dorados Holdings's current Dividend Payout Ratio of 0.51 is 30.8% above 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 Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Arcos Dorados Holdings and its competitors. For the Restaurants industry, the median Dividend Payout Ratio is 0.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arcos Dorados Holdings's current Dividend Payout Ratio is 0.51, which is 82% above median its own 10-year median of 0.28. 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 MXN163.50, compared to a current price of MXN143.00 — trading 12.5% below its estimated fair value. The current Dividend Payout Ratio is 0.51, which is 82% above median its 10-year median of 0.28 and 30.8% above the Restaurants industry median of 0.39. Arcos Dorados Holdings' overall GF Score™ is 88/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Arcos Dorados Holdings (MEX:ARCO N), the current Dividend Payout Ratio is 0.51 as of Mar. 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 MXN143.00 is trading 12.5% below its estimated GF Value™ of MXN163.50.
GuruFocus considers Arcos Dorados Holdings to be Modestly Undervalued.
Key valuation signals for MEX:ARCO N:
Dividend Payout Ratio: 0.51 (82% above median its 10-year median of 0.28)
GF Value™: MXN163.50 vs. price of MXN143.00 (12.5% below fair value)
Industry Position: 30.8% above the Restaurants median (#44 of 166)
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.
88GF Score
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