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Arcos Dorados HoldingsSTU:AD8 -0.49%89 Return-on-Tangible-Asset is 3.93% as of Mar. 2026, which is 27% below its 10-year median of 5.38. GuruFocus rates STU:AD8 with a GF Score™ of 89/100 and a GF Value™ of €8.26 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 364 Restaurants companies, Arcos Dorados Holdings ranks better than 71.43% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Arcos Dorados Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was €125 Mil. Arcos Dorados Holdings's average total tangible assets for the quarter that ended in Mar. 2026 was €3,179 Mil. Therefore, Arcos Dorados Holdings's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 3.93%.
The historical rank and industry rank for Arcos Dorados Holdings's Return-on-Tangible-Asset or its related term are showing as below:
STU:AD8'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -6.26 Med: 5.38 Max: 8.03
Current: 6.74
During the past 13 years, Arcos Dorados Holdings's highest Return-on-Tangible-Asset was 8.03%. The lowest was -6.26%. And the median was 5.38%.
STU:AD8's Return-on-Tangible-Asset is ranked better than 71.43% of 364
companies
in the Restaurants industry
Industry Median: 2.39
vs STU:AD8: 6.74
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Arcos Dorados Holdings Return-on-Tangible-Asset Related Terms
Arcos Dorados Holdings Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Arcos Dorados Holdings's Return-on-Tangible-Asset 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.
STU:AD8 vs BJRI, WEN, CBRL: Return-on-Tangible-Asset Comparison
For the Restaurants subindustry, Arcos Dorados Holdings's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Arcos Dorados Holdings's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Arcos Dorados Holdings's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 3.93% mean?
Arcos Dorados Holdings (STU:AD8) has a Return-on-Tangible-Asset of 3.93% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Arcos Dorados Holdings and its competitors. This is 27% below median its historical median of 5.38. According to the industry distribution chart, Arcos Dorados Holdings ranks #104 out of 364 companies in the Restaurants industry, placing it in the top 28.6%.
Is Arcos Dorados Holdings' Return-on-Tangible-Asset too high?
Arcos Dorados Holdings' current Return-on-Tangible-Asset of 3.93% is 27% below median its 10-year median of 5.38. The Restaurants industry median Return-on-Tangible-Asset is 2.39. Arcos Dorados Holdings' value of 3.93% is 64.4% above this industry median. Based on the distribution chart, Arcos Dorados Holdings ranks #104 out of 364 companies in the Restaurants industry, which is above the industry midpoint. Overall, Arcos Dorados Holdings has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arcos Dorados Holdings' Return-on-Tangible-Asset compare to BJRI and WEN?
According to the Restaurants industry distribution chart, Arcos Dorados Holdings ranks #104 out of 364 companies for Return-on-Tangible-Asset. This puts Arcos Dorados Holdings in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.39. Arcos Dorados Holdings' value of 3.93% is 64.4% above this benchmark. While the company's 10-year median is 5.38 vs. the industry median of 2.39, 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 Return-on-Tangible-Asset for a Restaurants company?
The median Return-on-Tangible-Asset among Restaurants companies is 2.39, based on 364 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arcos Dorados Holdings's current Return-on-Tangible-Asset of 3.93% is 64.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Arcos Dorados Holdings and its competitors. For the Restaurants industry, the median Return-on-Tangible-Asset is 2.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arcos Dorados Holdings's current Return-on-Tangible-Asset is 3.93%, which is 27% below median its own 10-year median of 5.38. 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 (STU:AD8) is currently considered Modestly Undervalued. The stock's GF Value™ is €8.26, compared to a current price of €7.06 — trading 14.6% below its estimated fair value. The current Return-on-Tangible-Asset is 3.93%, which is 27% below median its 10-year median of 5.38 and 64.4% above the Restaurants industry median of 2.39. Arcos Dorados Holdings' overall GF Score™ is 89/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Arcos Dorados Holdings (STU:AD8), the current Return-on-Tangible-Asset is 3.93% 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 (STU:AD8) Overvalued in 2026?
Based on GuruFocus' analysis, Arcos Dorados Holdings stock appears to be undervalued.
The current stock price of €7.06 is trading 14.6% below its estimated GF Value™ of €8.26.
GuruFocus considers Arcos Dorados Holdings to be Modestly Undervalued.
Key valuation signals for STU:AD8:
Return-on-Tangible-Asset: 3.93% (27% below median its 10-year median of 5.38)
GF Value™: €8.26 vs. price of €7.06 (14.6% below fair value)
Industry Position: 64.4% above the Restaurants median (#104 of 364)
No single metric tells the full story. See the STU: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.
89GF Score
Get the complete analysis for STU:AD8
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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