Arcos Dorados HoldingsMEX:ARCO N 84 Pretax Margin % is 4.94% as of Mar. 2026, which is 4% below its 10-year median of 5.12. GuruFocus rates MEX:ARCO N with a GF Score™ of 84/100 and a GF Value™ of MXN166.74 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 362 Restaurants companies, Arcos Dorados Holdings ranks better than 75.97% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Arcos Dorados Holdings Pretax Margin % Related Terms
Arcos Dorados Holdings Pretax Margin % Historical Data
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The historical data trend for Arcos Dorados Holdings's Pretax Margin % 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: Pretax Margin % Comparison
For the Restaurants subindustry, Arcos Dorados Holdings's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Arcos Dorados Holdings's Pretax Margin % 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.
Arcos Dorados Holdings (MEX:ARCO N) has a Pretax Margin % of 4.94% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Arcos Dorados Holdings and its competitors. This is near median its historical median of 5.12. According to the industry distribution chart, Arcos Dorados Holdings ranks #87 out of 362 companies in the Restaurants industry, placing it in the top 24%.
Is Arcos Dorados Holdings' Pretax Margin % too high?
Arcos Dorados Holdings' current Pretax Margin % of 4.94% is near median its 10-year median of 5.12. The Restaurants industry median Pretax Margin % is 2.99. Arcos Dorados Holdings' value of 4.94% is 65.2% above this industry median. Based on the distribution chart, Arcos Dorados Holdings ranks #87 out of 362 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 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arcos Dorados Holdings' Pretax Margin % compare to WEN and BH?
According to the Restaurants industry distribution chart, Arcos Dorados Holdings ranks #87 out of 362 companies for Pretax Margin %. This places Arcos Dorados Holdings in the top 24% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 2.99. Arcos Dorados Holdings' value of 4.94% is 65.2% above this benchmark. While the company's 10-year median is 5.12 vs. the industry median of 2.99, 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 Pretax Margin % for a Restaurants company?
The median Pretax Margin % among Restaurants companies is 2.99, based on 362 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arcos Dorados Holdings's current Pretax Margin % of 4.94% is 65.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Arcos Dorados Holdings and its competitors. For the Restaurants industry, the median Pretax Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arcos Dorados Holdings's current Pretax Margin % is 4.94%, which is near median its own 10-year median of 5.12. 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 MXN166.74, compared to a current price of MXN145.23 — trading 12.9% below its estimated fair value. The current Pretax Margin % is 4.94%, which is near median its 10-year median of 5.12 and 65.2% above the Restaurants industry median of 2.99. Arcos Dorados Holdings' overall GF Score™ is 84/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Arcos Dorados Holdings (MEX:ARCO N), the current Pretax Margin % is 4.94% 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 MXN145.23 is trading 12.9% below its estimated GF Value™ of MXN166.74.
GuruFocus considers Arcos Dorados Holdings to be Modestly Undervalued.
Key valuation signals for MEX:ARCO N:
Pretax Margin %: 4.94% (near median its 10-year median of 5.12)
GF Value™: MXN166.74 vs. price of MXN145.23 (12.9% below fair value)
Industry Position: 65.2% above the Restaurants median (#87 of 362)
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.
84GF Score
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