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Arcos Dorados Holdings (BUE:ARCO) Profitability Rank : 5 (As of Sep. 2024)


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What is Arcos Dorados Holdings Profitability Rank?

Arcos Dorados Holdings has the Profitability Rank of 5.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Arcos Dorados Holdings's Operating Margin % for the quarter that ended in Sep. 2024 was 7.04%. As of today, Arcos Dorados Holdings's Piotroski F-Score is 4.


Competitive Comparison of Arcos Dorados Holdings's Profitability Rank

For the Restaurants subindustry, Arcos Dorados Holdings's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank Distribution in the Restaurants Industry

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

* The bar in red indicates where Arcos Dorados Holdings's Profitability Rank falls into.



Arcos Dorados Holdings Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Arcos Dorados Holdings has the Profitability Rank of 5.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Arcos Dorados Holdings's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=75873.659 / 1077567.545
=7.04 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Arcos Dorados Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

4. Consistency of the profitability

5. Predictability Rank


Arcos Dorados Holdings Profitability Rank Related Terms

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Arcos Dorados Holdings Business Description

Traded in Other Exchanges
Address
Rio Negro 1338, First Floor, Montevideo, URY, 11100
Arcos Dorados Holdings Inc operates McDonald's-branded restaurants in approximately 20 countries and territories in Latin America and the Caribbean. It functions through two sources which include company-operated restaurants and franchised restaurants segment. Their menu includes hamburgers, McNuggets, salad, sandwiches, french fries and others.