Arcos Dorados Holdings (FRA:AD8) Quality Rank

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Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:AD8 Arcos Dorados Holdings Inc FRA:AD8
90 GF Score
Price €7.03
GF Value €8.21
! 6 Warning Signs
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What is Arcos Dorados Holdings Quality Rank?

The Quality Rank measures the business quality of a company relative to other companies. It is ranked based on the strength of the balance sheet, as well as the profitability and growth of the business. The ranked companies are split in equal numbers and then ranked from 1 to 10, with 10 being the highest.

The rank of balance sheet (30%)

The rank of balance sheet is done through the ranking of:
  • Interest coverage
  • Zscore
  • Debt to revenue
  • Equity to asset
  • Cash to debt

The rank of Profitability (70%)

The ranking of Profitability is done by ranking:
  • Operating margin mean rank (10-year mean average profit margine)
  • Operating margin growth rank
  • Fscore
  • Predictability rank
  • Revenue growth rank (5 year), when the growth is higher than 25%, set it as 25%
  • Num of year profit (number of years that is profitable within the last 10 years)
  • ROIC median (10-year median of ROIC)

Arcos Dorados Holdings Quality Rank Related Terms

FRA:AD8
90GF Score
Arcos Dorados Holdings Inc FRA:AD8
Quality Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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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 €7.03 is trading 14.4% below its estimated GF Value™ of €8.21.

Key valuation signals for FRA:AD8:

  • Quality Rank:
  • GF Value™: €8.21 vs. price of €7.03 (14.4% below fair value)
  • GF Score™: 90/100 with 6 warning signs

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 Business Description

Address Rio Negro 1338, First Floor, Montevideo, URY, 11100
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

Get the complete analysis for FRA:AD8

Quality Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€7.03
Price
€8.21
GF Value