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Arcos Dorados Holdings has the Profitability Rank of 8. It has a higher profitability and may stay that way.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and 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
A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
Arcos Dorados Holdings Profitability Rank Related Terms
FRA:AD8 vs BJRI, WEN, CBRL: Profitability Rank Comparison
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 Profitability Rank vs 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.
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.
The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.
Arcos Dorados Holdings has the Profitability Rank of 8. It has a higher profitability and may stay that way.
Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.
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.
* 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 (FRA:AD8) has a Profitability Rank of 8 as of Jun. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Arcos Dorados Holdings and its competitors. This is 33% above median its historical median of 6.00. Over the past decade, Arcos Dorados Holdings' Profitability Rank has ranged from 5.00 to 8.00.
Is Arcos Dorados Holdings' Profitability Rank too high?
Arcos Dorados Holdings' current Profitability Rank of 8 is 33% above median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 8.00. Overall, Arcos Dorados Holdings has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arcos Dorados Holdings' Profitability Rank compare to BJRI and WEN?
Arcos Dorados Holdings' Profitability Rank of 8 can be compared against companies in the Restaurants industry. Historically, Arcos Dorados Holdings' own Profitability Rank has ranged from 5.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Restaurants company?
A good Profitability Rank depends on the Restaurants industry context. However, Profitability Rank 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 Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Arcos Dorados Holdings and its competitors. Arcos Dorados Holdings's current Profitability Rank is 8, which is 33% above median its own 10-year median of 6.00. 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 (FRA:AD8) is currently considered Modestly Undervalued. The stock's GF Value™ is €8.19, compared to a current price of €6.78 — trading 17.3% below its estimated fair value. The current Profitability Rank is 8, which is 33% above median its 10-year median of 6.00. Arcos Dorados Holdings' overall GF Score™ is 90/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Arcos Dorados Holdings (FRA:AD8), the current Profitability Rank is 8 as of Jun. 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 (FRA:AD8) Overvalued in 2026?
Based on GuruFocus' analysis, Arcos Dorados Holdings stock appears to be undervalued.
The current stock price of €6.78 is trading 17.3% below its estimated GF Value™ of €8.19.
GuruFocus considers Arcos Dorados Holdings to be Modestly Undervalued.
Key valuation signals for FRA:AD8:
Profitability Rank: 8 (33% above median its 10-year median of 6.00)
GF Value™: €8.19 vs. price of €6.78 (17.3% below fair value)
No single metric tells the full story. See the FRA:AD8 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.
90GF Score
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