ARCOS DORADOS HOLDINGS INC-A (ARCO) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:ARCO • VGG0457F1071

8.34 USD
+0.1 (+1.21%)
Last: Feb 3, 2026, 11:16 AM
Fundamental Rating

4

Overall ARCO gets a fundamental rating of 4 out of 10. We evaluated ARCO against 132 industry peers in the Hotels, Restaurants & Leisure industry. There are concerns on the financial health of ARCO while its profitability can be described as average. ARCO has a correct valuation and a medium growth rate. Finally ARCO also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year ARCO was profitable.
  • In the past year ARCO had a positive cash flow from operations.
  • ARCO had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years ARCO had a positive operating cash flow.
ARCO Yearly Net Income VS EBIT VS OCF VS FCFARCO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M

1.2 Ratios

  • ARCO has a Return On Assets of 6.88%. This is in the better half of the industry: ARCO outperforms 75.76% of its industry peers.
  • With an excellent Return On Equity value of 32.94%, ARCO belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
  • The Return On Invested Capital of ARCO (7.78%) is better than 64.39% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ARCO is in line with the industry average of 10.38%.
Industry RankSector Rank
ROA 6.88%
ROE 32.94%
ROIC 7.78%
ROA(3y)5.49%
ROA(5y)2.38%
ROE(3y)35.94%
ROE(5y)10.55%
ROIC(3y)8.93%
ROIC(5y)N/A
ARCO Yearly ROA, ROE, ROICARCO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 -60

1.3 Margins

  • Looking at the Profit Margin, with a value of 5.39%, ARCO is in line with its industry, outperforming 59.09% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ARCO has grown nicely.
  • ARCO has a Operating Margin of 7.85%. This is comparable to the rest of the industry: ARCO outperforms 50.00% of its industry peers.
  • In the last couple of years the Operating Margin of ARCO has grown nicely.
  • With a Gross Margin value of 12.39%, ARCO is not doing good in the industry: 88.64% of the companies in the same industry are doing better.
  • In the last couple of years the Gross Margin of ARCO has grown nicely.
Industry RankSector Rank
OM 7.85%
PM (TTM) 5.39%
GM 12.39%
OM growth 3Y13.39%
OM growth 5Y5.96%
PM growth 3Y24.84%
PM growth 5Y4.27%
GM growth 3Y1.69%
GM growth 5Y14.64%
ARCO Yearly Profit, Operating, Gross MarginsARCO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

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2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ARCO is still creating some value.
  • The number of shares outstanding for ARCO remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, ARCO has more shares outstanding
  • The debt/assets ratio for ARCO is higher compared to a year ago.
ARCO Yearly Shares OutstandingARCO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
ARCO Yearly Total Debt VS Total AssetsARCO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

  • An Altman-Z score of 2.26 indicates that ARCO is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.26, ARCO is in the better half of the industry, outperforming 62.88% of the companies in the same industry.
  • ARCO has a debt to FCF ratio of 383.76. This is a negative value and a sign of low solvency as ARCO would need 383.76 years to pay back of all of its debts.
  • ARCO has a Debt to FCF ratio of 383.76. This is in the lower half of the industry: ARCO underperforms 61.36% of its industry peers.
  • A Debt/Equity ratio of 1.32 is on the high side and indicates that ARCO has dependencies on debt financing.
  • ARCO has a Debt to Equity ratio (1.32) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF 383.76
Altman-Z 2.26
ROIC/WACC1.02
WACC7.65%
ARCO Yearly LT Debt VS Equity VS FCFARCO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

  • A Current Ratio of 0.89 indicates that ARCO may have some problems paying its short term obligations.
  • ARCO has a Current ratio (0.89) which is comparable to the rest of the industry.
  • A Quick Ratio of 0.81 indicates that ARCO may have some problems paying its short term obligations.
  • ARCO has a Quick ratio (0.81) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.81
ARCO Yearly Current Assets VS Current LiabilitesARCO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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4

3. Growth

3.1 Past

  • ARCO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.57%.
  • ARCO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.38% yearly.
  • The Revenue has been growing slightly by 1.21% in the past year.
  • ARCO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.60% yearly.
EPS 1Y (TTM)-18.57%
EPS 3Y45.99%
EPS 5Y11.38%
EPS Q2Q%-29.41%
Revenue 1Y (TTM)1.21%
Revenue growth 3Y18.89%
Revenue growth 5Y8.6%
Sales Q2Q%5.22%

3.2 Future

  • ARCO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.48% yearly.
  • Based on estimates for the next years, ARCO will show a small growth in Revenue. The Revenue will grow by 6.20% on average per year.
EPS Next Y-21.73%
EPS Next 2Y-2.82%
EPS Next 3Y4.8%
EPS Next 5Y9.48%
Revenue Next Year3.64%
Revenue Next 2Y5.49%
Revenue Next 3Y5.95%
Revenue Next 5Y6.2%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ARCO Yearly Revenue VS EstimatesARCO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
ARCO Yearly EPS VS EstimatesARCO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 0.5 -0.5 1

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5

4. Valuation

4.1 Price/Earnings Ratio

  • ARCO is valuated correctly with a Price/Earnings ratio of 14.63.
  • 82.58% of the companies in the same industry are more expensive than ARCO, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of ARCO to the average of the S&P500 Index (28.41), we can say ARCO is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 12.26, which indicates a correct valuation of ARCO.
  • Based on the Price/Forward Earnings ratio, ARCO is valued cheaper than 84.09% of the companies in the same industry.
  • ARCO is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.64, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.63
Fwd PE 12.26
ARCO Price Earnings VS Forward Price EarningsARCO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 95.45% of the companies in the same industry are more expensive than ARCO, based on the Enterprise Value to EBITDA ratio.
  • ARCO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ARCO is more expensive than 61.36% of the companies in the same industry.
Industry RankSector Rank
P/FCF 680.18
EV/EBITDA 4.39
ARCO Per share dataARCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • ARCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.29
EPS Next 2Y-2.82%
EPS Next 3Y4.8%

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7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.95%, ARCO has a reasonable but not impressive dividend return.
  • ARCO's Dividend Yield is rather good when compared to the industry average which is at 1.25. ARCO pays more dividend than 84.85% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.83, ARCO pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.95%

5.2 History

  • On average, the dividend of ARCO grows each year by 17.60%, which is quite nice.
  • ARCO has paid a dividend for at least 10 years, which is a reliable track record.
  • ARCO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)17.6%
Div Incr Years2
Div Non Decr Years3
ARCO Yearly Dividends per shareARCO Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2022 2023 2024 2025 0.05 0.1 0.15 0.2

5.3 Sustainability

  • 20.61% of the earnings are spent on dividend by ARCO. This is a low number and sustainable payout ratio.
  • The dividend of ARCO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.61%
EPS Next 2Y-2.82%
EPS Next 3Y4.8%
ARCO Yearly Income VS Free CF VS DividendARCO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M
ARCO Dividend Payout.ARCO Dividend Payout, showing the Payout Ratio.ARCO Dividend Payout.PayoutRetained Earnings

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ARCOS DORADOS HOLDINGS INC-A

NYSE:ARCO (2/3/2026, 11:16:55 AM)

8.34

+0.1 (+1.21%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-12
Earnings (Next)03-10
Inst Owners48.76%
Inst Owner Change-14.96%
Ins Owners4.55%
Ins Owner ChangeN/A
Market Cap1.76B
Revenue(TTM)4.56B
Net Income(TTM)245.35M
Analysts81.43
Price Target9.84 (17.99%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.95%
Yearly Dividend0.24
Dividend Growth(5Y)17.6%
DP20.61%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.18%
Min EPS beat(2)-9.5%
Max EPS beat(2)27.87%
EPS beat(4)2
Avg EPS beat(4)1.68%
Min EPS beat(4)-40.32%
Max EPS beat(4)28.68%
EPS beat(8)3
Avg EPS beat(8)-3.98%
EPS beat(12)6
Avg EPS beat(12)2.22%
EPS beat(16)9
Avg EPS beat(16)15.63%
Revenue beat(2)0
Avg Revenue beat(2)-2.7%
Min Revenue beat(2)-3.88%
Max Revenue beat(2)-1.53%
Revenue beat(4)1
Avg Revenue beat(4)-2.01%
Min Revenue beat(4)-3.88%
Max Revenue beat(4)0.15%
Revenue beat(8)4
Avg Revenue beat(8)-0.22%
Revenue beat(12)7
Avg Revenue beat(12)-0.09%
Revenue beat(16)10
Avg Revenue beat(16)0.8%
PT rev (1m)0%
PT rev (3m)-1.24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)-5.07%
EPS NY rev (3m)-8.14%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)-2.84%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.79%
Valuation
Industry RankSector Rank
PE 14.63
Fwd PE 12.26
P/S 0.39
P/FCF 680.18
P/OCF 6.48
P/B 2.36
P/tB 2.93
EV/EBITDA 4.39
EPS(TTM)0.57
EY6.83%
EPS(NY)0.68
Fwd EY8.15%
FCF(TTM)0.01
FCFY0.15%
OCF(TTM)1.29
OCFY15.42%
SpS21.63
BVpS3.54
TBVpS2.84
PEG (NY)N/A
PEG (5Y)1.29
Graham Number6.73
Profitability
Industry RankSector Rank
ROA 6.88%
ROE 32.94%
ROCE 12.62%
ROIC 7.78%
ROICexc 8.55%
ROICexgc 9.07%
OM 7.85%
PM (TTM) 5.39%
GM 12.39%
FCFM 0.06%
ROA(3y)5.49%
ROA(5y)2.38%
ROE(3y)35.94%
ROE(5y)10.55%
ROIC(3y)8.93%
ROIC(5y)N/A
ROICexc(3y)10.07%
ROICexc(5y)N/A
ROICexgc(3y)10.43%
ROICexgc(5y)N/A
ROCE(3y)14.7%
ROCE(5y)N/A
ROICexgc growth 3Y20.8%
ROICexgc growth 5Y13.02%
ROICexc growth 3Y20.55%
ROICexc growth 5Y12.8%
OM growth 3Y13.39%
OM growth 5Y5.96%
PM growth 3Y24.84%
PM growth 5Y4.27%
GM growth 3Y1.69%
GM growth 5Y14.64%
F-Score5
Asset Turnover1.28
Health
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF 383.76
Debt/EBITDA 1.8
Cap/Depr 142.32%
Cap/Sales 5.89%
Interest Coverage 5.16
Cash Conversion 49.6%
Profit Quality 1.05%
Current Ratio 0.89
Quick Ratio 0.81
Altman-Z 2.26
F-Score5
WACC7.65%
ROIC/WACC1.02
Cap/Depr(3y)202.4%
Cap/Depr(5y)154.14%
Cap/Sales(3y)7.21%
Cap/Sales(5y)6.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.57%
EPS 3Y45.99%
EPS 5Y11.38%
EPS Q2Q%-29.41%
EPS Next Y-21.73%
EPS Next 2Y-2.82%
EPS Next 3Y4.8%
EPS Next 5Y9.48%
Revenue 1Y (TTM)1.21%
Revenue growth 3Y18.89%
Revenue growth 5Y8.6%
Sales Q2Q%5.22%
Revenue Next Year3.64%
Revenue Next 2Y5.49%
Revenue Next 3Y5.95%
Revenue Next 5Y6.2%
EBIT growth 1Y17.91%
EBIT growth 3Y34.81%
EBIT growth 5Y15.08%
EBIT Next Year67.24%
EBIT Next 3Y24.77%
EBIT Next 5Y18.85%
FCF growth 1Y-87.93%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-20.84%
OCF growth 3Y1.13%
OCF growth 5Y3.61%

ARCOS DORADOS HOLDINGS INC-A / ARCO FAQ

Can you provide the ChartMill fundamental rating for ARCOS DORADOS HOLDINGS INC-A?

ChartMill assigns a fundamental rating of 4 / 10 to ARCO.


What is the valuation status of ARCOS DORADOS HOLDINGS INC-A (ARCO) stock?

ChartMill assigns a valuation rating of 5 / 10 to ARCOS DORADOS HOLDINGS INC-A (ARCO). This can be considered as Fairly Valued.


What is the profitability of ARCO stock?

ARCOS DORADOS HOLDINGS INC-A (ARCO) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for ARCO stock?

The Price/Earnings (PE) ratio for ARCOS DORADOS HOLDINGS INC-A (ARCO) is 14.63 and the Price/Book (PB) ratio is 2.36.


What is the financial health of ARCOS DORADOS HOLDINGS INC-A (ARCO) stock?

The financial health rating of ARCOS DORADOS HOLDINGS INC-A (ARCO) is 2 / 10.