ARCOS DORADOS HOLDINGS INC-A (ARCO) Fundamental Analysis & Valuation

NYSE:ARCO • VGG0457F1071

8 USD
-0.39 (-4.65%)
At close: Mar 5, 2026
8 USD
0 (0%)
After Hours: 3/5/2026, 4:10:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This ARCO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

Taking everything into account, ARCO scores 4 out of 10 in our fundamental rating. ARCO was compared to 125 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.


Dividend Valuation Growth Profitability Health

6

1. ARCO Profitability Analysis

1.1 Basic Checks

  • In the past year ARCO was profitable.
  • ARCO had a positive operating cash flow in the past year.
  • Of the past 5 years ARCO 4 years were profitable.
  • 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's Return On Assets of 6.88% is fine compared to the rest of the industry. ARCO outperforms 76.00% of its industry peers.
  • ARCO has a Return On Equity of 32.94%. This is amongst the best in the industry. ARCO outperforms 86.40% of its industry peers.
  • With a decent Return On Invested Capital value of 7.78%, ARCO is doing good in the industry, outperforming 62.40% of the companies in the same industry.
  • ARCO had an Average Return On Invested Capital over the past 3 years of 8.93%. This is in line with the industry average of 10.78%.
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

  • With a Profit Margin value of 5.39%, ARCO perfoms like the industry average, outperforming 57.60% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ARCO has grown nicely.
  • ARCO's Operating Margin of 7.85% is in line compared to the rest of the industry. ARCO outperforms 46.40% of its industry peers.
  • ARCO's Operating Margin has improved in the last couple of years.
  • ARCO has a worse Gross Margin (12.39%) than 91.20% of its industry peers.
  • 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. ARCO Health Analysis

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.
  • ARCO has about the same amout of shares outstanding than it did 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

  • ARCO has an Altman-Z score of 2.27. This is not the best score and indicates that ARCO is in the grey zone with still only limited risk for bankruptcy at the moment.
  • ARCO has a Altman-Z score of 2.27. This is in the better half of the industry: ARCO outperforms 62.40% of its industry peers.
  • 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.
  • The Debt to FCF ratio of ARCO (383.76) is worse than 62.40% of its industry peers.
  • ARCO has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
  • With a Debt to Equity ratio value of 1.32, ARCO perfoms like the industry average, outperforming 52.80% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.32
Debt/FCF 383.76
Altman-Z 2.27
ROIC/WACC1.06
WACC7.35%
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.
  • Looking at the Current ratio, with a value of 0.89, ARCO is in line with its industry, outperforming 45.60% of the companies in the same industry.
  • A Quick Ratio of 0.81 indicates that ARCO may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.81, ARCO is in line with its industry, outperforming 43.20% of the companies in the same 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. ARCO Growth Analysis

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.
  • Looking at the last year, ARCO shows a small growth in Revenue. The Revenue has grown by 1.21% in the last year.
  • The Revenue has been growing by 8.60% on average over the past years. This is quite good.
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

  • Based on estimates for the next years, ARCO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.48% on average per year.
  • The Revenue is expected to grow by 6.20% on average over the next years.
EPS Next Y-21.73%
EPS Next 2Y-2.82%
EPS Next 3Y4.8%
EPS Next 5Y9.48%
Revenue Next Year3.84%
Revenue Next 2Y6.77%
Revenue Next 3Y6.71%
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. ARCO Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.04, which indicates a correct valuation of ARCO.
  • Based on the Price/Earnings ratio, ARCO is valued a bit cheaper than the industry average as 76.80% of the companies are valued more expensively.
  • ARCO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
  • ARCO is valuated reasonably with a Price/Forward Earnings ratio of 11.76.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCO indicates a somewhat cheap valuation: ARCO is cheaper than 80.00% of the companies listed in the same industry.
  • ARCO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.11.
Industry RankSector Rank
PE 14.04
Fwd PE 11.76
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ARCO indicates a rather cheap valuation: ARCO is cheaper than 94.40% of the companies listed in the same industry.
  • ARCO's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ARCO is more expensive than 62.40% of the companies in the same industry.
Industry RankSector Rank
P/FCF 652.45
EV/EBITDA 4.44
ARCO Per share dataARCO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • The decent profitability rating of ARCO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.23
EPS Next 2Y-2.82%
EPS Next 3Y4.8%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. ARCO Dividend Analysis

5.1 Amount

  • ARCO has a Yearly Dividend Yield of 2.70%.
  • Compared to an average industry Dividend Yield of 1.10, ARCO pays a better dividend. On top of this ARCO pays more dividend than 85.60% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, ARCO pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.7%

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.
  • ARCO's earnings are growing slower than its dividend. 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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ARCO Fundamentals: All Metrics, Ratios and Statistics

ARCOS DORADOS HOLDINGS INC-A

NYSE:ARCO (3/5/2026, 4:10:02 PM)

After market: 8 0 (0%)

8

-0.39 (-4.65%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)11-12
Earnings (Next)03-19
Inst Owners48.76%
Inst Owner Change-10.42%
Ins Owners4.55%
Ins Owner ChangeN/A
Market Cap1.69B
Revenue(TTM)4.56B
Net Income(TTM)245.35M
Analysts81.43
Price Target10.45 (30.62%)
Short Float %2.21%
Short Ratio3.26
Dividend
Industry RankSector Rank
Dividend Yield 2.7%
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)6.14%
PT rev (3m)6.28%
EPS NQ rev (1m)-16.67%
EPS NQ rev (3m)-14.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.48%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-0.54%
Valuation
Industry RankSector Rank
PE 14.04
Fwd PE 11.76
P/S 0.37
P/FCF 652.45
P/OCF 6.22
P/B 2.26
P/tB 2.81
EV/EBITDA 4.44
EPS(TTM)0.57
EY7.12%
EPS(NY)0.68
Fwd EY8.5%
FCF(TTM)0.01
FCFY0.15%
OCF(TTM)1.29
OCFY16.08%
SpS21.63
BVpS3.54
TBVpS2.84
PEG (NY)N/A
PEG (5Y)1.23
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 2.27
F-Score5
WACC7.35%
ROIC/WACC1.06
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 Year3.84%
Revenue Next 2Y6.77%
Revenue Next 3Y6.71%
Revenue Next 5Y6.2%
EBIT growth 1Y17.91%
EBIT growth 3Y34.81%
EBIT growth 5Y15.08%
EBIT Next Year68.91%
EBIT Next 3Y25.02%
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 4 / 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 14.04 and the Price/Book (PB) ratio is 2.26.


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.